The Federal Trade Commission announced last week that it is introducing broad framework that would deal with the commercial use of Web consumer data, including the adoption of a national “do not track” standard that is similar to the “do not call” registry. The FTC admits that if this framework is to have any legs an act of Congress will be necessary. However, until that happens, the agency hopes that it can assist online advertisers by providing guidance around a suggested best practice scenario for storing, monitoring, and marketing, consumer online behaviors.
Online advertisers like Google, Microsoft, Mozilla, and Yahoo, have yet to comment on the FTC’s suggestions, but most have asserted that they are opposed to any regulations that have a direct impact on a company’s ability to make money. The “opt-out” mechanism is truly unique to American business, and I’ve commented on this before in previous blogs. Whereas, the rest of the world would identify this as an “opt-in” approach (i.e. that you affirmatively want your online behavior to be monitored), the U.S. approach is an “opt-out” (i.e. that you don’t want to have your online behavior monitored). This truly is a unique perspective to the concept of “privacy,” but the FTC feels self-regulation is not working, and a solution needs to be delivered on behalf of the American consumer.