Ad Groups Call FCC’s ‘Opt-In’ Edict to Broadband Ads ‘Alarming’

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Advertising trade groups are not happy with the FCC’s plan to require broadband providers to obtain “opt-in” consent from consumers before using their web browsing and app for ad targeting. Six advertising trade associations have told the agency the revised proposal for privacy rules would hamper the ability of broadband providers “to succeed in the developing marketplace” of online advertising, reports MediaPost.

DMA, one of the trade associations that signed the letter, asserted the proposal would “upend the established and thriving internet economy, which relies on the support of data-driven advertising.”

“The success of the digital economy is not an accident; it is the product of a proven policy framework based on notice and choice and enforced by industry self-regulation,” stated SVP of Advocacy, Emmett O’Keefe, on the DMA website.  

The issue is urgent to advertisers because the FCC has placed the rules on its docket for a vote at the October 27, open meeting. Commission Chairman Tom Wheeler blogged recently consumers may not realize ISPs are collecting information from that online use. “Your ISP handles all of your network traffic. That means it has a broad view of all of your unencrypted online activity – when you are online, the websites you visit, and the apps you use. If you have a mobile device, your provider can track your physical location throughout the day in real time. Even when data is encrypted, your broadband provider can piece together significant amounts of information about you – including private information such as a chronic medical condition or financial problems – based on your online activity.”

The Commission has regulated how telephone companies use similar information, limiting how a carrier can repurpose and resell what it learns about consumer’s phone activity without consent. The idea is the same here; ISPs would be required to obtain affirmative “opt-in” consent before using or sharing sensitive information.

Information that would be considered “sensitive” includes geo-location data, data on children, health or financial information, social security numbers, web browsing history, app usage history, and the content of communications such as the text of emails. All other individually identifiable information would be considered non-sensitive, and the use and sharing of that information would be subject to opt-out consent, according to the chairman.

Wheeler clarifies the proposal focuses on information collected from consumers when they use broadband services, such as residential or mobile connections and would not apply to privacy practices for websites or apps; the FTC has authority over those.

Yet the six advertising trade associations say the FTC does not consider web browsing and app use “sensitive data” and the new proposal does. This would be “an unprecedented step,” which “will likely result in consumers facing a bombardment of disruptive opt-in notices,” counter the associations. Those include the: American Advertising Federation, the American Association of Advertising Agencies, Association of National Advertisers, Direct Marketing Association, Interactive Advertising Bureau and the Network Advertising Initiative.

The groups urge the agency to give the public and industry a chance to review and comment on the new proposal before the vote. Wheeler explained the FCC consulted with consumer and public interest groups, fixed and mobile ISPs, advertisers, app and software developers, academics, and other government actors including the FTC.

October 13, 2016

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