Behavioral Targeting: FTC to Crack Down on Internet Ads that Invade Privacy

internet privacyThere’s a reason for the Google Privacy Policy Change for its Interest Based Advertising. The U.S. Federal Trade Commission (FTC) has made protecting consumer privacy from behavioral targeted advertising a high priority. The FTC is tired of spyware and other measures used to track consumers online in order to deliver advertising based on information provided online and website viewing habits.

Google and other advertisers argue that using methods like the DoubleClick dart cookie to track enhances website viewing experience by providing readers with advertising that matches their interests. And it is unlikely that the FTC would disagree with this position.

The sticking point is transparency and informed consent. By regulation or Congressional legislation, look for the FTC to crackdown on interest based advertising except in instances where the consumer has specifically opted in to receive such advertising.

What’s this mean for Internet marketing? Behavioral marketing will continue to exist but there will be a price to pay in order to get collect the information needed to deliver targeted ads based on reader preferences. Some type of carrot (money, special report, coupons, etc.) will need to be provided as an incentive for consumers to sign up for behavioral targeted ads and the related use of tracking cookies and other devices to collect personal data as they surf the Web.

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Google Privacy Policy Change and Interest Based Advertising

privacy-policyGoogle wants its AdSense partners to update their privacy policies to accommodate interest-based advertising. How does this advertising work? Google uses its DoubleClick DART cookie to track personal website viewing habits. Based on the content that you view on different websites, Google determines what types of advertisements might be of interest to you. When you visit a website that has AdSense, Google will serve you targeted ads on that site with the expectation that you’re more likely to click on one of the ads because you’re interested in it.

However, Google doesn’t provide you with sample language for updating your website’s privacy policy to comply with its April 8th deadline.

I’ve drafted sample language for privacy policy revisions and included it in a special report (an Adobe Acrobat PDF file). You’ll want to download a copy right now by clicking this link and saving a copy to your computer’s hard drive in a place you can find it (like your Desktop or My Documents folder).

Of course, this is general information and not legal advice. Talk with your Internet business attorney about specific legal issues.

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