Electronic Retailer - May 2011 - 29

which is sometimes confused with Behavioral or Tailored Advertising. Unlike Behavioral or Tailored Advertising, DPI involves opening the content part of information that is sent over the Internet in order to add advertisements. New privacy legislation would require ad networks to notify consumers about behavioral advertising and allow them to opt out. Earlier this month U.S. Rep. Cliff Stearns (R-Fla.) said he would introduce a bill that would empower the Federal Trade Commission to oversee a five-year self-regulatory program. In his announcement of the bill, Sterns said consumers should be able to access information collected about them online and to opt out of that data collection. Stearns’ bill comes from a draft he originally circulated in 2010 – with former Rep. Rick Boucher (D-Va.) – which drew comments from nearly 70 organizations, including ERA. Stearns says that feedback will be incorporated into the bill. Stearns’ measure joins three other potential privacy bills pending in the House. Rep. Jackie Speier (D-Calif.) introduced the Do Not Track Me Online Act, which asks the FTC to issue regulations that would require internet companies to allow consumers to opt out of online tracking. Rep. Bobby Rush’s (D-Ill.) online privacy bill would require

ad networks to obtain user consent to track them. Rep. Ed Markey (D-Mass.) has introduced online privacy legislation with a “Do Not Track” requirement aimed specifically at protecting children. Last month, U.S. Sen. John Kerry (D-Mass) floated a draft of privacy legislation that would give the FTC the authority to create privacy regulations and to operate a website for consumers to opt out of behavioral targeting online. The measure also would require companies to notify consumers about collection of their data and

give them an opt out of having data used by third party ad networks. Though self regulation standards call for companies to notify consumers about this type of ad targeting and give them an opt out, the bill would impose “major and significant new obligations on businesses dealing with personal information,” says Future of Privacy Forum Co-Chair Christopher Wolf in a written analysis of the bill. The bill, which lists, Rep. John McCain (R-Ariz.) as a co-sponsor, remains a work in progress. On the Hill and at the relevant agencies, ERA is working to distinguish between technologies so lawmakers understand the terms and to ensure that Electronic Retailers retain flexibility online.

Net Neutrality
The overall fight regarding net neutrality hinges on the fact that some internet service providers (ISPs) want companies to pay to improve the speed and quality of users’ experience on particular websites, which could lead to a drastic increase in costs for anyone selling and advertising online, as well as providing the customer with a low quality experience. In December, the Federal Communication Commission (FCC) issued an

May 2011 | electronicRETAILER

Electronic Retailer - May 2011

Table of Contents for the Digital Edition of Electronic Retailer - May 2011