Consumer Privacy, Data Protection: Informed Consent and Consumer Choice
One of my colleagues, Hillary Fitzpatrick Peterson, has been doing a lot of work on the privacy front and has this to say about informed consent and consumer choice. A major component of the FTC report, Protecting Consumer Privacy in an Era of Rapid Change, is the idea of consumer choice. This is the idea that when a consumer provides a company with certain types of information, the consumer should be informed as to what that company intends to do with that information and then should be able to choose whether or not to continue the interaction. One of the...
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Whatever you do, don't innovate: The FTC distinction between what first and third party marketing activities
One of the practices the FTC is looking at and addressing in its Preliminary FTC Staff Report, Protecting Consumer Privacy in an Era of Rapid Change is third party marketing (as opposed to first party marketing). Basically, the FTC’s point of view seems to be that online behavior that is consistent with the reasonable expectations of consumers around privacy is OK, because it is either obvious or analogous to certain offline behavior. As the FTC puts it: First-party marketing: Online retailers recommend products and services based upon consumers’ prior purchases on the website. Offline retailers do the same and may,...
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More on Do-Not-Track
One of my colleagues, Pat Connolly, has been doing a lot of work on the privacy front and has this to say about “do-not-track.” By now, readers have seen by now the preliminary FTC Staff Report, Protecting Consumer Privacy in an Era of Rapid Change (the “FTC Report”) recommending implementation of a “Do Not Track” mechanism available to all Internet users. The Staff envisions “a uniform and comprehensive way for consumers to choose to block online tracking and targeted advertising” accomplished by legislation or potentially through robust, enforceable self-regulation. Media outlets have heralded the ill-defined mechanism as a simple...
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Do Not Track: what it is and what it isn't
Here is post from Clickz on December 21 in which the FTC tries to explain what it means by do-not-track. Here is the key paragraph: The recent FTC report envisions a do-not-track mechanism that lets consumers opt out of third party tracking for behavioral advertising, which is one of the most common forms of online tracking. If companies wish to share personal information with third parties for purposes other than online behavioral advertising, we think some greater form of user consent should be obtained. The system as currently envisioned would not apply to ordinary first party tracking or to a...
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A view of next year: Cold but with a chance of fun
I was skiing on Cannon Mountain the other day. Below is what I saw. This is the time of year when pundits look forward and make predictions. So, I decided to do the same. Here are ten predictions for next year: 1) The Pats will beat the Eagles in the Superbowl 2) Angels will continue to invest at a torrid rate. 3) There will be continued modest improvement in numbers of VC financings (but not enough to get back to 2007 levels). 4) Cleantech and renewable energy start-ups will continue to have difficulty raising venture money. 5) ...
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A blinding flash of the obvious and what the Feds should do about protecting consumer privacy
At the risk of once more stating the obvious: All the good things we all get for “free” from Google, Microsoft, Facebook, MapQuest et. al. depend on the ability of these companies to sell targeted advertising. Furthermore, I am betting that a lot (almost all) of the great new things entrepreneurs are planning to bring to you for “free” will depend upon their ability to sell targeted advertising. As WiredPrNews.com puts it, “If the Do Not Track plan is approved and implemented, the repercussions for the online ad industry could be catastrophic.” You can think it is creepy, you can...
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"Creepy" is the new "cool" and how to make sure it stays that way
The other day at Mass TLC’s Mobility Summit I had a brief conversation with Mark Herrmann (an entrepreneur here in Boston) that touched on the FTC’s recent proposal for protecting consumer privacy online. We were talking about the “do not track” proposal and the consensus in the tech industry that it just won’t fly. Mark’s comment: “It is creepy that ‘they’ can and do track you out in the net, but ‘creepy is the new cool.’” There is just no question that some people accept the fact that they are being tracked and fed targeted online advertising. It is...
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Start-ups and the FTC Proposed Framework for Protecting Privacy
I attended the MassTLC Mobile Summit at the Microsoft Nerd center this morning and was struck by how little discussion of the FTC’s recent proposals around privacy there was. The issue is that FTC will regulate in this area. As a matter of politics, there is no avoiding it. The only issue is what will the regulations look like? The tech community seems to think this is no big deal because industry will prevail. By "prevail" tech folks seem to mean that the regs, whatever they are, will be so watered down that the regs will be meaningless. Their position is...
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FTC Proposes Privacy Framework That Will Impact the Business Model of All Online and Mobile Advertising Companies
We just sent out the client alert below. I thought it was important enough to reproduce in its entirety. The Federal Trade Commission (FTC) just published its preliminary Staff report setting out its proposed framework for protecting privacy in the digital economy. View the FTC’s press release here. The FTC is seeking comments on its proposed framework by January 31, 2011 and expects to issue a final report in 2011. Every digital media business that attracts advertising revenue online and/or through mobile devices, as well as the venture capital and private equity funds that invest in them, has a stake...
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Privacy on the web and common sense about where we are going
I just ran across this from Dave Morgan of Media Post's OnLine Spin blog: Public sensibilities on privacy will evolve. Over time, Web users will recognize that the Internet is a public space, not unlike public malls or streets. You may surf the Web from your bedroom, but your surfing takes you out of that private, protected place. Just as people can be recognized when they walk through public malls or streets, they will be recognized online if they haven't taken steps to prevent that recognition, which will probably mean that there will be many parts of the Web where...
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