• by Wendy Davis , October 10, 2024

The Association of National Advertisers is expressing concerns to the Federal Trade Commission about its recent report blasting the privacy practices of social-media companies and streaming video services.

That report, which said online platforms threaten privacy by collecting a “staggering” amount of data for ad-targeting purposes, “failed to discuss or acknowledge the vast and varied benefits that existing data practices -- including advertising -- provide to consumers and the U.S. economy,” Christopher Oswald, executive vice president at the ad organization says in a letter sent to the agency this week.

The group's letter comes in response to the FTC's approval last month of a report examining data gathering and ad targeting by Meta Platforms, Amazon, Twitter, YouTube, TikTok, Discord, Reddit and Snap.

The report recommended that Congress enact new legislation to curb what the agency calls “commercial surveillance,” and that  social and streaming platforms avoid using “privacy-invasive tracking technologies” like pixels to collect sensitive information from consumers.

Privacy advocates praised the agency's report, with some saying it shows the need for new laws limiting companies' ability to harness consumers' information.

“We need to rein in the rampant overcollection and misuse of consumer data by making strong data minimization protections the default and ensuring companies are held accountable when they violate the trust of consumers,” Justin Brookman, director of technology policy at Consumer Reports, stated last month.

The Association of National Advertisers, which says it supports privacy legislation that would override state laws, argues that a nationwide standard should account for “both the potential harms and clear benefits that the responsible use of data creates for consumers and the economy.”

“Instead of providing such a balanced analysis -- one that is not only desirable but is also required to support the FTC’s enforcement and rulemaking powers -- the report suggests only amorphous 'harms' that may accrue to consumers through [platforms'] data practices, with no discussion of all the benefits the digital economy creates for individuals and businesses,” Oswald writes.

He adds that targeted advertising subsidizes free and low-cost content (including news and videos) and also “enables small, midsize, and start-up businesses to enter markets, innovate, and compete, thus driving down prices for consumers and empowering a vibrant, competitive marketplace of businesses.”

The letter also argues that targeting related to “purportedly 'sensitive'” data can be beneficial, citing a Department of Health and Human Services COVID-19 vaccination campaign that involved sending “culturally tailored and geographically targeted” ads.