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eXelate and Google Singled Out As Models for Safe Harbor Privacy Legislation

Posted October 1, 2009

AS EXCERPTED FROM CLICKZ

by Kate Kaye

Online advertising and other ad industry organizations such as the Network Advertising Initiative and the Interactive Advertising Bureau have put forth self-regulatory guidelines to encourage more transparency in online data collection and usage. The Federal Trade Commission also unveiled revised principles for behavioral advertising earlier this year. In his article, Boucher noted that the FTC would be granted regulatory authority to enforce the privacy principles he plans to submit.

He also stated the bill would "create a safe harbor for companies that participate in robust self-regulatory programs that have been approved by the Federal Trade Commission." The FTC has signaled that industry self-regulatory efforts are not stringent enough and must require more prominent disclosure of data tracking and usage in or near ads themselves, outside privacy policies.

The NAI is "working on the mechanics and infrastructure that will go into providing more notice in and around ads," said Chuck Curran, the organization's executive director and general counsel. "How that plays out in the legislative context, it's too early to tell," continued Curran. The NAI's membership is comprised of online ad networks.

Boucher pointed to existing programs that could be given safe harbor, such as models allowing users to opt-out of collection and disclosure of data by ad networks -- something currently enabled by the NAI -- and systems that let users view or modify their profiles, or opt-out of ad targeting based on that information. Companies including Google and Exelate, a firm that collects data for ad targeting, allow users to modify preferences, or opt-out of such targeting.

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