Industry Groups Argue Against Regs Based On Fair Information Practice Principles

privacy

Fair Information Practice Principles are a "useful tool" when analyzing online privacy, but should not be codified in new regulations or laws, a coalition of 13 ad, media and business organizations argue in comments submitted Friday to the Department of Commerce.  

Formally establishing a fair information principles-based framework for online privacy "would reduce industry's ability to respond to changes in consumer preferences and would hinder advancements in technology," the Interactive Advertising Bureau, American Association of Advertising Agencies, Association of National Advertisers, Newspaper Association of America and other groups say.

The organizations' comments were submitted in response to a proposal by the Department of Commerce that industry groups and consumer advocates should jointly develop enforceable self-regulatory privacy policies based on Fair Information Practice Principles.

The groups argue that Fair Information Practice Principles "serve as the foundation for many self-regulatory programs," but say that the principles should be "applied through self-regulation in a manner tailored to meet the particular context."

What's more, the groups say, some of the principles aren't necessarily appropriate for companies engaged in online behavioral targeting, or tracking people as they surf the Web in order to serve them targeted ads. For instance, the principles broadly call for data collectors to not only inform consumers about data collection, but also specify the purpose for which data will be used and limit retention periods.

The ad and media organizations say it doesn't make sense to apply those types of restrictions to companies engaged in online behavioral advertising, "The appropriate way to align consumer expectations with commercial information practices is by providing meaningful notice to consumers about a company's data collection and use practices, and, where appropriate, providing choice," the groups say. "Meaningful notice does not require companies to specifically enumerate every possible use of collected data. This not only adds to the length and complexity of such notices, but it could have the effect of stifling valuable and consumer friendly innovations."

The Commerce Department also sought input about a Federal Trade Commission proposal that industry groups voluntarily create a universal do-not-track mechanism to allow consumers to eschew all online ad tracking.

The IAB and other groups say in their comments that they support the current self-regulatory efforts to allow consumers to opt out of online ad tracking links available at sites like AboutAds.info, but oppose a mandatory do-not-track system. "Efforts by the federal Government -- through legislation or regulation -- to create or mandate a Do Not Track mechanism risk threatening the Internet as it exists today."

Currently, Aboutads.info allows consumers to opt out of online ad tracking by 59 ad networks, and the ad groups say in their comments that there are "dozens more preparing to join." The comments submitted by the ad groups don't estimate how many ad networks are currently engaged in collecting data used to serve targeted ads, but compliance company Evidon (formerly Better Advertising) says it has identified around 300 such companies.

Some privacy advocates submitted comments on Friday arguing that government regulation is needed to protect consumers. "So-called 'Notice and Choice,' which has been the foundation of the self-regulatory regime, has done nothing to stem the tide of increasing data collection and use -- all without the genuinely informed understanding and consent of users," the Center for Digital Democracy and U.S. Public Interest Research Group say in their written comments.

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