REDWOOD CITY, CA — NebuAd, under scrutiny by Congress and the Federal Trade Commission as part of those entities’ larger investigation into consumer privacy issues online, has decided to delay its plans to deploy on a widespread basis behavioral tracking technology that employs “deep-packet inspection.” Deep-packet inspection allows publishers, advertisers and internet service providers to examine details inside each unencrypted packet of information exchanged by a user’s computer as he or she surfs, emails or engages in other online activities.Possibly related to the company’s decision is the resignation this week of its chief executive officer, who was under fire after at least seven clients cancelled or suspended contracts to use NebuAd’s technology. Bob Dykes will remain chairman of NebuAd’s board of directors even though he has accepted a position at VeriFone. Dykes was the chief evangelist of NebuAd’s theory and technologies.
NebuAd spokeswoman Janet McGraw The Washington Post the company and its clients “put trial deployments on hold so that Congress can spend additional time addressing the privacy issues and policies associated with online behavioral advertising.”
Critics have likened deep-packet inspection to wiretapping of telephone calls. The House Energy and Commerce Committee is attempting to understand the practice as it decides whether additional legislation is necessary to protect consumers’ privacy in the internet age. The major stumbling block for all who have examined the issues is whether consumers should be informed about tracking and allowed to opt out or required to opt in before companies collect and disseminate information about them.
“The sense I get is the air is out of the tires as it relates to targeted advertising through deep-packet inspection,” Robb Topolski, a technology consultant, told the Post. “The users have made it very clear that they don’t want any part of ISP monitoring regimes that watch everything they do and say on the internet.”
