FTC Online Ad Targeting Guidelines: Industry Breathes A Sigh Of Relief
By David Kaplan - Fri 21 Dec 2007 02:53 PM PST
The Federal Trade Commission’s new online ad guidelines appear to offer a laissez faire approach, which the Interactive Advertising Bureau and AOL (NYSE: TWX) have treated as an early Christmas present. As we mentioned, the FTC is entrusting the industry to police itself as opposed to handing down strict rules on behavioral targeting. In meetings set up with the FTC last month, the regulatory agency indicated it might issue tight controls over marketers’ online activity. In a speech at the November Ad:Tech conference in New York, Randall Rothenberg, president and CEO of the Interactive Advertising Bureau warned that coming regulation could strangle online advertising practices: “Anti-consumer advocates are out to stifle the industry, including the FTC, which wants complete regulation of cookies themselves and could require opt-in stipulations for all online ads.”
The IAB’s response to Thursday’s announcement practically contained an audible sigh of relief: “We support the FTC’s call for industry self-regulation and we are very pleased that the commission endorsed the IAB’s analysis of the value of the ad-supported Internet. At the same time we will continue to work with our members to educate the FTC and Congress about the new interactive tools that improve consumers’ lives, enhance consumer control and build the U.S. economy.”
Meanwhile, AOL, which has been touting its opt-out ad system anticipating FTC action, issued a statement supporting the decision and suggesting the industry follow its lead on “responsible” behavioral targeting: “This type of advertising promises to provide relevant and customized information to consumers, but it will only succeed if advertisers do it in a trustworthy manner and for consumers’ benefit.”
It may be too soon to declare victory. Privacy advocates are expected to focus their efforts on Congress and at the state government level. The FTC’s guidelines probably won’t end calls for regulatory action—and the comment period could have some landmines.
Posted in: Advertising, Marketing, Companies, Time Warner, AOL, Legal, Regulatory
