The word “cookies” has become so much a part of our online experience that most consumers are at least tangentially aware of the technology’s capability and purpose. For the online consumer, cookies are mostly associated with how web-based companies are able track the browsing habits of Internet users. With the ability to track user preferences online, the extent of regulating such a practice has become a hot button topic in legislative circles. This has driven the online advertising industry to develop its own self-governing rules on who to regulate “tracking” technology. How effective has self-regulation been? If an industry exhibits an inability to self-regulate industry practices has it open itself up to being regulating by government agencies (e.g. Federal Trade Commission)?
The Wall Street Journal reported today that technology researchers have uncovered “supercookie” technology that enables Web-based sites to recreate user profiles even after a user has deleted his/her regular cookies. Privacy rights advocates highlight that this is just another example of why self-regulation does not work – in effect, a better mousetrap can be developed. However, online advertising representatives counter that self-regulation is working, primarily due to increased consumer transparency, consumer choice mechanisms, data security, and education.
Is it enough to simply allow the consumer the choice as to whether they want their browsing habits tracked for specific marketing purposes? Or should an already over-extended agency, like the Federal Trade Commission, be relegated to ensuring proper enforcement?