WASHINGTON, DC — The more they learn about the ways surfers are tracked online, the more alarmed congressional representatives become. On Friday, the House Energy and Commerce Committee expanded its inquiry into so-called “behavioral advertising,” requesting from 33 internet service providers information about whether, how, and when the companies have engaged in data gathering pursuant to ad targeting. The ISPs have until August 8th to respond.The committee’s stated goal is to determine whether additional federal regulation is needed to protect consumers’ privacy online.
“The committee is interested in learning how pervasive this practice is among cable, phone and internet companies, what safeguards are in place to ensure that consumers are aware of the practice, and how best to preserve their privacy,” committee Chairman John D. Dingell [D-MI], wrote in a letter to ISPs including AOL, AT&T, Bresnan Communications, Bright House Networks, Cable One, Cablevision, Cbeyond, CenturyTel, Charter Communications, Citizen Communications, Comcast, Covad Communications, Cox, EarthLink, Google, Insight, Knology, Level 3 Communications, Mediacom, Microsoft, Paetec, Qwest, RCN, Suddenlink, TDS Telecom, Time Warner Cable, TW Telecom, United Online, Verizon WideOpenWest, Windstream Communications, XO Communications and Yahoo.
One key area of interest for legislators is whether consumers are made aware of the type of data that is collected, how it is collected and how it is used. Additionally, legislators have voiced concern about whether consumers have control over the collection and use of the data. Committee members have voiced the opinion that consumers deserve clear, concise and conspicuous notification that their surfing habits are recorded and should be allowed to opt out of data collection and ad targeting.
However, the committee is hardly of one mind about whether additional legislation is necessary to curtail any perceived overstepping of bounds by ISPs.
“It’s imperative that there be some evidence of harm if we’re going to regulate this practice, or we run the risk of prematurely restricting the latest technological advancements that are related to online advertising,” Rep. Cliff Stearns [R-FL] said during a hearing in June.
In December 2007 the Federal Trade Commission issued a proposed set of guidelines for ISP data collection. Among the suggestions for industry self-regulation are disclosure of data gathering and provision of an opt-out mechanism.
