Trade Commission sets out online privacy principles

US-- The Federal Trade Commission (FTC) has looked to calm fears over online behavioural advertising with a set of proposed privacy principles that advocate transparency, self-regulation and consumer control – avoiding the need for tough new laws that could make it difficult for researchers to track people's online activities.

Chief among the FTC's suggestions is for websites to carry “clear, concise, consumer-friendly and prominent” statements about what data is being collected and why, and how consumers can opt out.

The commission also set out the need for appropriate security measures as well as a limit on the amount of time companies should retain data, in a seven-page document called ‘Online Behavioural Advertising: Moving the discussion forward to possible self-regulatory principles'.

The FTC wrote: “While behavioural advertising provides benefits to consumers in the form of free web content and personalised ads that many consumers value, the practice itself is largely invisible and unknown to consumers… few appear to understand the role that data collection plays in providing [these benefits].”

Support for the FTC's call for industry self-regulation has come from the Interactive Advertising Bureau (IAB), which is looking to publish its own set of privacy principles early this year.

Concerns about online privacy came to a head in November, at the FTC's workshop on behavioural advertising. Consumer advocacy groups used the event to push the idea of a do-not-track list, similar to the national Do-Not-Call registry; however, some considered this an unworkable solution.

The FTC has given all parties until 22 February to comment on its proposed principles. To download a copy, click here.

Author: Brian Tarran

Related links:

Do-not-track list ‘would not affect' research

Online privacy groups call for do-not-track list