Papers & Articles
04/08/2008 | Privacy Self Regulation vs Legislation
The US Senate Commerce Committee recently questioned the Federal Trade Commission (FTC) along with online advertisers Google and Microsoft regarding how people's personal details are protected. NebuAd, a small company formed in 2006 that uses technology that analyses data from Internet Service Providers (ISP), identifying individual web users' browsing and buying habits, was also grilled on the privacy of personal data.
In reply to Senator Byron Dorgan, Bob Dykes, CEO of NebuAd maintained that his company was acting in compliance with the law. NebuAd does not use identifiable information, such as IP addresses or user names; IP addresses are converted into code numbers to preserve web users' anonymity. Senator Dorgan was not satisfied and Leslie Harris, president and CEO at the Center for Democracy and Technology (CDT), highlighted the failure of AOL in 2006 to protect the anonymity of search users when they mistakenly released over 20 million search enquiries including identifiable data.
Both Microsoft and Google stated that they would prefer Federal legislation as opposed to the fragmented pieces of State rulings and reliance on self regulation. Lydia Payne, director of the FTC's Bureau of Consumer Protection, stressed that there are benefits to the consumer in the way behavioral advertising works and she expressed cautious optimism that concerns regarding privacy can be effectively self regulated.
It is not just in the United States that web users' privacy is considered under threat, In the United Kingdom, ISPs have been allowing tracker software to profile surfing habits and online purchases. BT, Carphone Warehouse and Virgin Media have partnered with Phorm, formerly 121 Media. Phorm claims that personal data is not identified. Phorm encrypts ISP addresses and uses cookie technology to track users.
The Information Commissioner has ruled that customers of the ISPs must be asked if they want their web habits to be observed. It is known, however, that BT tested Phorm's technology without their customers' knowledge.
The privacy debate will, no doubt, continue on either side of the Atlantic for some time to come.
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