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“Online Profiling and Consumer Choice”

Learn about the challenges related to online behavioral advertising, self-regulation efforts, and technical issues hindering consumer choice. Discover proposed solutions and the importance of addressing these concerns for a better online experience.

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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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