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New privacy legislation threatens online advertising models
Internet privacy continues to be at the top of the agenda for policymakers in Washington, D.C., and state capitals across the country. A number of legislative and regulatory proposals would place unnecessary restrictions on companies that advertise on the Internet.
Legislation that would require the Federal Trade Commission to implement a Do Not Track mechanism has been introduced in Congress. Do Not Track would enable consumers to stop third-party advertisers from monitoring and recording their online activity. This type of regulatory structure not only would affect the online advertising industry, but also would limit the ability of Website operators to offer a customized user experience on the Internet.
In addition, Sen. John Kerry (D-Mass) and Sen. John McCain (R-Ariz.) introduced legislation in April that would require companies to provide enhanced notice to consumers that their information is being tracked, as well as obtain consent from consumers to share their information with third-party advertisers. While the bill does not include the creation of a Do Not Track mechanism, if passed it would add costly regulations to businesses that advertise or engage in ecommerce on the Internet.
Policy proposals restricting online behavioral advertising continue to be debated at the state level as well. Legislation has been introduced in California that would require the State Attorney General to create a Do Not Track mechanism, and a bill in New York would restrict companies from collecting and sharing consumer data for marketing purposes.
Experian® will continue to advocate for effective, enforceable self-regulation that protects consumer privacy without inhibiting innovations in Internet commerce. In the meantime, it will be critical for the online advertising industry to continue to follow the Self-Regulatory Program for Online Behavioral Advertising that was implemented earlier this year.