Are You in the Privacy Business?

1. Are You in the Privacy Business? Jules Polonetsky Co-Chairman and Director, Future of Privacy Forum

2. The Future of Privacy Forum (FPF) is a Washington, DC based think tank that seeks to advance responsible data practices. The forum is led by Internet privacy experts Jules Polonetsky and Christopher Wolf and includes an advisory board comprised of leading figures from industry, academia, law and advocacy groups. • FPF was launched in November 2008, and is supported by AOL, AT&T, Adobe, Blue Kai, The Better Advertising Project, Deloitte, eBay, Facebook, Intel, Lockheed Martin, Microsoft, The Nielsen Company, Qualcomm, TRUSTE, Verizon and Yahoo • By design, the FPF Advisory Board is 50% CPO’s of leading companies and 50% privacy advocates and academics. Newest members include former FTC Commissioner Pam Harbour Jones and current Privacy Commissioner of Ontario Ann Cavoukian

3. Overview: Policymakers have declared the current privacy regime to be ineffective and are seeking new models for regulation. Advocates and the media sound the alarm over the latest advances in analysis and targeting.  Can the path forward enable consumer privacy, profits and personalization?  

4. The Privacy Cycle

5. FTC, Attorneys General, Class Actions • Focus under law has been “HARM” or “DECEPTIVE PRACTICES” • UNFAIRNESS • Free Markets and competition expected to well serve consumers • Human rights, dignity, informational self determination viewed as European concepts

6. Things have changed over the last few years • Industry consolidation – consumer companies are data companies • Global Platforms • Internet brands are news • Canada and EU ascendant • New FTC leadership • New Administration, • tech savvy and post 9-11 • Self Regulation in disrepute post financial industry meltdown • Distinction between anonymous and personal eroded

7. FTC Consumer Protection Director David Vladeck • “Now, Mr. Vladeck indicated, the commission would begin considering not just whether companies caused monetary harm, but whether they violated consumers’ dignity” New York Times, Fresh Views at Agency Overseeing Online Ads August 4, 2009

8. Some would fight! • (Proposed efforts)… by Congress and the FTC show a misunderstanding of how interactive media actually work – or an active desire to hinder the medium’s growth, and jeopardize the 3.1 million jobs and 2.1 percent of U.S. GDP that depend on it. IAB President Randall Rothenberg, The Hill 1/11/10

9. Be a lover not a fighter • “Featurizing” data use • Identity not anonymity • Marketers are not in the privacy business (keeping information secret, not knowing users, anonymity) – but are in the business of knowing and treating customers or prospects well • Meaningfully engaging consumers • Transparency and Control alleviate distrust, support the value equation • Experience with “profile managers” versus opt-out

10. BBB, IAB, AAAA, ANA, NAI, DMA adopt FPF symbol Icon project working group: AT&T, Yahoo, AOL, TRUSTe, CDT, Professors Mary Culnan and Manoj Hastak – with FTC input throughout.

12. Jules Polonetsky Future of Privacy Forum 919 18th Street, Suite 925 Washington, DC 20006 202-713-9466julespol@futureofprivacy.orgwww.futureofprivacy.org www.facebook.com/futureofprivacy www.twitter.com/julespolonetsky