Think tank seeks better disclosure on online data tracking

US-- The Future of Privacy Forum, a think tank backed by major telecoms and internet companies, has announced a research initiative to develop better ways of informing people how data on their web usage might be used to target advertising.

Pamela Jones Harbour of the Federal Trade Commission, which is supporting the initiative, said: “Most consumers do not fully understand the types and amount of information collected by businesses, or why the information may be commercially valuable. To the extent that the industry currently attempts to provide notice and choice to consumers, such efforts are insufficient. It is my hope that this research will help educate the industry and government about more effective ways to communicate with users and remove any confusion consumers may have about data use.”

Privacy campaigners, politicians and regulators have all voiced dissatisfaction with the ‘opt-out' procedures that have typically been used by firms tracking online behaviour. The option to opt out is often buried in lengthy and complicated privacy policies, which critics say most users are unlikely to ever read.

The FPF says it will be working with marketing services group WPP and others to develop “a variety of notices that will resonate with consumers and begin to test them with users”. The research will incorporate input from the general public.

Jules Polonetsky, co-chair and director of the FPF, said: “Privacy policies will continue to play an important role in legally binding companies to commitments and providing essential details regarding their data practices. Widespread agreement now exists, however, that more candid, prominent and engaging methods are needed to ensure that trustworthy and meaningful communications are provided to users.”

Author: Robert Bain