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FTC Leans Toward Online Ad Regulation

Consumer privacy groups have been complaining to the Federal Trade Commission about the enhanced targeting practices of marketers. They want stricter regulation of online data tracking-referred to more broadly as "behavioral targeting" these days. And the FTC is starting to listen, as the prospect of enhanced data targeting increases.

Mergers like Google-DoubleClick and Microsoft-aQuantive have consumer groups particularly worried. One of their chief complaints is that ad networks can no longer contend that they don't collect personally identifiable information, as the increase in data collection leads to more distinct user profiles. Moreover, the ways that networks collect user information are expanding: content tracking, browser toolbars, promotions, sweepstakes, discounts, online purchases, search and declared user information. Advertisers aim to take the latter to the next level via social networking. So, how much is too much? Unfortunately, it looks like the FTC no longer trusts the industry to decide.

Read the whole story at Information Week »

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