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“Online Profiling and Consumer Choice”

“Online Profiling and Consumer Choice”. Peter P. Swire Center for American Progress Ohio State University ATL Hill Briefing April 28, 2008. Overview. My background Background on behavioral profiling Self-regulatory efforts to give consumer choice – NAI

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“Online Profiling and Consumer Choice”

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  1. “Online Profiling and Consumer Choice” Peter P. Swire Center for American Progress Ohio State University ATL Hill Briefing April 28, 2008

  2. Overview • My background • Background on behavioral profiling • Self-regulatory efforts to give consumer choice – NAI • Some technical obstacles to self regulation • Proposal to fix

  3. My Background • Today: • Law professor, Ohio State (live in DC) • Senior Fellow, Center for American Progress • Was Chief Counselor for Privacy in OMB under President Clinton • Full range of privacy issues • Also teach/write on cyberlaw, consumer protection, antitrust, cybersecurity • www.peterswire.net

  4. Background on Behavioral Advertising • Internet bubble of late 90s • Internet advertising • “Cookies” that let a web site identify the same computer when it returned • OMB cookie guidance in 2000 • DoubleClick used cookies for an advertising network • Agreed to have consumer choice, 2001 • “Opt out” of being tracked & of targeted ads • Browser settings also stopped some cookies

  5. 2d Wave of Internet Ads • Lull from 2001 until about 2006 • Big recent increase in online advertising • Recent mergers • Google/DoubleClick • Microsoft, AOL, and Yahoo have also made acquisitions in this space • This year, Internet advertising will be larger than radio advertising

  6. FTC and Self-Regulation • 2006 hearings on the next “Tech-Ade” • 2007 town hall on behavioral advertising • Proposed FTC self-regulatory privacy principles for online behavioral advertising • Public comments submitted in April • Network Advertising Initiative since 2001 offers consumer choice through “opt out cookie” • www.networkadvertising.org • Consumer gets a cookie that says “don’t serve different ads to me based on where I have surfed”

  7. But, Technical Problems • Swire & Anton comments to FTC in April on technical issues in behavioral advertising • FTC “Consumer Control Principle” – consumer choice • New consumer poll on how important to be able to choose to opt out: • 63% rate 10 out of 10 • 84% say 8 or higher • Industry (NAI) says need consumer choice • But, the tool for choice is the opt-out cookie, and it’s broken

  8. Not a Good Thing for Choice • Monday I opt out of tracking, using an opt-out cookie • Tuesday anti-spyware software deletes all cookies • Wednesday I am being tracked again

  9. Another Bad Thing for Choice • Monday I opt out of tracking • Tuesday I delete “all cookies” • Browser software now deletes the opt-out cookies • Wednesday I’m being tracked again

  10. What to Do About It • Our comments to FTC explain simple technical fixes for anti-spyware & browser software • If don’t do the technical fix, then industry & the FTC aren’t meeting their “consumer choice” goal • Congressional attention may speed a good architecture for consumer choice

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