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Hot Topics in Online Behavioral Advertising Pamela Jones Harbour New York City Bar May 14, 2012

Hot Topics in Online Behavioral Advertising

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Page 1: Hot Topics in Online Behavioral Advertising

Hot Topics in

Online Behavioral Advertising

Pamela Jones Harbour

New York City Bar

May 14, 2012

Page 2: Hot Topics in Online Behavioral Advertising

Pamela Jones Harbour

2

Former Federal Trade Commissioner (2003-2010)

Heads the firm’s Privacy, Competition and Data Protection Practice Group

Well recognized for her knowledge of evolving areas of competition and

consumer protection law, including privacy and data security issues.

Partner

Washington, D.C.

Fulbright & Jaworski L.L.P.

[email protected]

+1 202 662 4505

Page 3: Hot Topics in Online Behavioral Advertising

Overview

~ Do Not Track proposal

~ Future trends

~ Self-regulation

~ The European Union’s reaction

~ Action items

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Page 4: Hot Topics in Online Behavioral Advertising

FTC’s 2009 Staff Report

Website Recommendations

1) Transparency and consumer control;

2) Reasonable security, and limited data retention, for consumer data;

3) Affirmative express consent for material changes to existing privacy promises; and

4) Affirmative express consent to (or prohibition against) using sensitive data for behavioral advertising.

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Page 5: Hot Topics in Online Behavioral Advertising

The Web 2.0 and

Emerging Web 3.0 Environment

Video and mobile devices

Facial recognition technology

Credit card networks entering new markets

Micro-targeting by political campaigns

Consumers value privacy and

control over their data

Technology advances has blurred

the line between personal information

and non-personal information

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Page 6: Hot Topics in Online Behavioral Advertising

FTC’s 2010 Staff Report

Suggested Framework

Privacy by Design

Simplification of Consumer Choice

Greater transparency

Page 7: Hot Topics in Online Behavioral Advertising

Trends

Privacy by Design

Companies required to provide consumers with

clearer choices

Consumers will have the opportunity to make

“choices” closer in time and location to the

disclosure of information

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Page 8: Hot Topics in Online Behavioral Advertising

Effective Self-Regulatory Programs

Easy for consumers to use

Have a real enforcement mechanism

Large portion of the industry adopts self regulatory programs

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Page 9: Hot Topics in Online Behavioral Advertising

Cookies & Do Not Track

“Cookies” can be tools for User convenience

“Cookies” can permit the site-owner to give you a

customized greeting when you return to the site

“Cookies” can be used to provide you with pages from

the site that relate to the subject

matter you were viewing during your

last visit, allowing the site to

serve-up customized or targeted

advertisements that are aimed

at your interests

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Page 10: Hot Topics in Online Behavioral Advertising

Do Not Track

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Page 11: Hot Topics in Online Behavioral Advertising

European Reaction

Article 29 Working Party finds OBA should be opt-in (June

2010)

Interactive Advertising Bureau (IAB) Europe launched a pan-

European self-regulatory program (April 2011)

Jacob Kohnstamm opinion states IAB standard did not meet

European Union privacy requirements (December 2011)

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Page 12: Hot Topics in Online Behavioral Advertising

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Do Not Track

vs.

Do Not Collect

Page 13: Hot Topics in Online Behavioral Advertising

Action Items

If your company is in a business that would be affected by

“do not track” or “do not collect,” let your legislators and

regulators know specifically how your company would be

affected

If you’re not sure whether your company would be affected

by “do not track” or “do not collect,” ask your marketing and

web design departments

If your company utilizes cookies or otherwise collects user

data, scrutinize both the amount and content of data collected,

and collect only the minimum necessary amount of data to

perform the task

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Page 14: Hot Topics in Online Behavioral Advertising

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When You Think

DATA PRIVACY AND SECURITY,

Think Fulbright TM