FTC Pushes Industry To Protect Consumer Privacy

Referring to himself as perhaps "the elephant in the room," David Vladeck, director of the bureau of consumer protection, Federal Trade Commission, addressed what has been on many marketing and media agency executives' minds of late: consumer privacy.

Speaking in an afternoon session at the 4As Transformation event, Vladeck reviewed the FTC's proposed "Do Not Track" effort for marketers that use behavioral advertising -- especially those efforts done online.

He says any efforts should include 1) privacy by design; 2) simplicity for consumers; 3) increased transparency, giving consumers better notices; 4) giving consumers greater control.

The FTC is in favor of industry self-regulation. "It should not be run by the government," says Vladeck.

In addition, he added that consumers should be able to "opt" out of behavioral marketing efforts -- and data collection as well. "It needs to be clear what they are choosing," he says.

Vladeck admitted there is much more to learn. "We have not had a good understanding of behavioral advertising. We haven't got a clear answer yet." That said, he added, "this is not undermining the benefits behavioral adverts offer."

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Such positions are not new for the FTC -- previous consumer-protection efforts, such as the "Do Not Call" plan, were instituted to help consumers avoid annoying sales calls.

"Consumer privacy has received a lot of public attention," says Vladeck. "Privacy is a not a new issue for the FTC. The commission's goal is unchanged."

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