Thursday, February 9, 2012

FTC Weighs 'Do Not Track' List

July 27, 2010

FTC Chairman Jon Leibowitz told a Senate panel Tuesday that the commission is exploring the idea of proposing a "do-not-track" list similar to the national Do Not Call registry that would allow consumers to opt-out of having their Web activities tracked for advertising purposes.

Leibowitz discussed the proposal during a Senate Commerce hearing on online consumer privacy. The FTC is expected to release a report in the fall with recommendations on ways to improve online privacy. He said some sort of opt-out process such as a do-not-track mechanism for online behavioral advertising could be run by the FTC or some private sector entity. It might be similar to the federal Do Not Call list that bars telemarketers from calling numbers on the list.

Privacy groups in 2007 called on the FTC to implement a do-not-track list to give users more control over their privacy. A poll released in June found wide public support for such a list.

Leibowitz also said the FTC may recommend that firms detail the most "material terms" in their privacy policies in a small box so that companies can't bury controversial practices in fine print.

He and some committee members noted that most average consumers do not read online privacy policies. Leibowitz said the FTC's proposal that Web sites feature important privacy information more prominently would help ensure that most average Internet users "don't have to sell their soul for not opting out."

During the second panel featuring representatives from AT&T, Apple, Facebook and Google, Sen. Claire McCaskill, D-Mo., was more blunt in her concerns about online tracking. She and others described the practice of online tracking as akin to someone following a consumer around a store with a camera and recording everything they looked at or bought. Before coming to the hearing, McCaskill said she did a test search for a foreign sports utility vehicle and when she went to look at other sites she was presented with ads for foreign SUVs.

"That's creepy," she said. "That means someone is following me around with a camera. If this is taken to a logical conclusion, it could kill the golden goose."

Meanwhile, Commerce Communications Subcommittee Chairman John Kerry, D-Mass., said in a statement that he plans to craft a privacy bill with the hope of enacting legislation early next year.

"The Commerce Committee, under Chairman [Ernest] Hollings a decade ago, considered similar privacy legislation," Kerry said in the statement. "We have learned a great deal more about this issue over the past decade and working together I believe we will successfully enact this legislation next year."

House Energy and Commerce Communications Chairman Rick Boucher, D-Va., and Energy and Commerce Consumer Protection Subcommittee Chairman Bobby Rush, D-Ill., also are working on privacy legislation. Boucher said last week that he didn't expect Congress would act on the issue this year but hoped it would be ready for action in the next Congress.

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Juliana Gruenwald

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Juliana Gruenwald has been covering tech and telecom issues for more than a decade for National Journal, Interactive Week, BNA and Congressional Quarterly. This is her second stint with National Journal. She was recruited by NJ in 1998 to help launch its first tech policy publication, Technology Daily. She left in 2000 to cover international tech and telecom issues for Ziff Davis Media's Interactive Week magazine. She started her career at United Press International as the wire service's first Helen Thomas Intern. She has a Bachelor of Arts degree from the University of Minnesota. A Minneapolis native, she misses the lakes but not the cold.


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Josh Smith covers technology policy as a staff reporter for National Journal. He previously interned at National Journal Daily, a Senate press office, and the Deseret News in Salt Lake City where he covered the state legislature, courts, and crime. In 2009 he graduated with honors from Southern Utah University after managing an award-winning student newspaper as editor-in-chief. Josh has received state, regional and national awards for his political and policy reporting, including first place in CapitolBeat’s 2009 Best of Statehouse Reporting college competition. A native of drop-dead-gorgeous Utah, Josh lives in Virginia with his wife, Amber.