Government Approves Web Self-Regulation

W A S H I N G T O N, July 27 -- Moving to protect Americans’ online privacy,the government today approved a plan by Internet advertisersto regulate the secret gathering of information used to profile Webcustomers.

The Federal Trade Commission voted unanimously to endorse theself-regulatory plan submitted by the Network AdvertisingInitiative, a consortium of major Internet advertising companies.

The plan, which will take effect immediately, will require Webadvertising companies to notify consumers of their Internetprofiling activities and give customers the chance to choosewhether information about their Web surfing can be gatheredanonymously.

The companies would also promise to give consumers “reasonableaccess” to personally identifiable information collected aboutthem and make “reasonable efforts” to protect the data theycollect.

Self Regulation Encouraged by FTC

The FTC urged the rest of the Internet industry to follow suit.

“Industry self-regulation must play a central part inprotecting consumer online privacy,” said Jodie Bernstein,director of the FTC’s Bureau of Consumer Protection.

Bernstein applauded the industry group’s “willingness to takesignificant steps” to protect privacy and said she hoped “theentire online industry follows their lead.”

Though a self-regulatory agreement drafted by the industry, theplan is a leap forward in the government’s effort to ensureelectronic privacy.

The FTC is still pressing for legislation to ensure that Webadvertisers outside the group, which covers about 90 percent of theindustry, follows the principles.

Companies Agree on Standard

Network Advertising Initiative members that will follow theprinciples include Internet advertising giants 24/7 Media, AdForce,AdKnowledge, DoubleClick, MatchLogic, Engage Technologies,NetGravity and Real Media, officials said.

The agreement is designed to address consumer concerns about thegrowing usage by advertisers and Internet sites of ad bannertechnology that secretly collects information about users as theyvisit Web pages.