WASHINGTON — The websites we visit, the online links we click, the search queries we conduct, the products we put in virtual shopping carts, the personal details we reveal on social networking pages — all of this can give companies insight into what Internet ads we might be interested in seeing.
But privacy watchdogs warn that too many people have no idea that Internet marketers are tracking their online habits and then mining that data to serve up targeted pitches — a practice known as behavioral advertising.
So, Congress could be stepping in. Rep. Rick Boucher, D-Va., chairman of the House Energy and Commerce Subcommittee on Communications, Technology and the Internet, is drafting a bill that would impose broad new rules on websites and advertisers.
His goal: to ensure that consumers know what information is being collected about them on the Web and how it is being used, and to give them control over that information.
While Congress has waded into Internet privacy issues before, this measure could break new ground as the first major attempt to regulate a nascent but fast-growing industry that represents the future of advertising. Boucher insists his bill will benefit consumers and preserve the underlying economics of the Internet, which relies on advertising to keep so much online content free.
“Our goal is not to hinder online advertising,” he said.
Boucher is working with Cliff Stearns of Florida, the top Republican on the Internet subcommittee, as well as Rep. Bobby Rush, D-Ill., who heads a separate subcommittee on consumer protection.
Washington’s interest in Internet marketing has put online advertisers on notice. In July, the industry released a set of self-regulatory principles in an effort to head off Congress and the Federal Trade Commission, which put out Internet ad guidelines early this year.
Boucher’s efforts have encouraged privacy activists, who point out that Internet surveillance has evolved beyond just data-tracking files, known as cookies, that websites place on visitors’ computers. Technologies such as “deep packet inspection” can now monitor a user’s every online move.
“Consumers have no idea that they are being followed online and that their information is being compiled into invisible digital dossiers,” said Jeffrey Chester, executive director of the Center for Digital Democracy, one of 10 privacy groups that recently issued recommendations for lawmakers.
Bill to increase transparency
Here is a look at some of the rules that Rep. Rick Boucher, chairman of the House Energy and Commerce Subcommittee on Communications, Technology and the Internet, hopes to put in a bill governing Internet advertising:
• Websites that collect information about visitors — or use an outside company to do so — in order to target advertising on their own pages would be required to prominently disclose what information they gather. The websites would have to describe in detail how that information is used, how long it is retained and whether it is shared with third parties. The sites would be required to allow visitors to “opt out” of data collection altogether.
• Websites that share user information with outside advertising networks, which place ads on sites all over the Internet, would be required to obtain user approval before collecting data. That is, consumers would have to “opt in.” But these sites could qualify for an opt-out requirement by meeting certain conditions. For instance, a site could let users review, modify and delete profiles created about them. Or it could ensure that ads contain links to inform users what information is being collected and provide a chance to opt out of targeted pitches.
• Websites that deal with sensitive personal information, such as medical and financial data, sexual orientation, Social Security numbers and other ID numbers, would be subject to the opt-in rule.
The Associated Press
