Privacy is everybody's business

Privacy is a very public matter these days.  This week’s Time cover story by Joel Stein reads, “Your Data for Sale.  Everything about you is being tracked – get over it.” Privacy is also a hot topic on Capitol Hill.  There are multiple pieces of legislation circulating Congress on the issue of online privacy including a bill expected any day from Senators John McCain (R-Ariz.) and John Kerry (D-Mass) that would create an “online privacy bill of rights”  which will include a “do not track” mechanism allowing consumers to opt-out of targeted online advertising.  On the surface, this sounds great.  We all want to protect our privacy, right?  But I would urge you all to dig a little deeper on this issue and understand the implications for you personally as well as for your business before determining your position. 

The Kerry/McCain bill allows for an opt-out standard on personally identifiable information (PII) that’s not sensitive, and an opt-in feature when the data is especially sensitive. The bill would cover a wide range of data and how “sensitive” is defined is key for marketers with everything from zip codes to computer IP addresses in the mix. It would require companies to ask permission before sharing a customer's or user's information with third parties and give customers the ability to see all the information that any one company has collected on them.  If passed, the Federal Trade Commission would become the regulatory agency able to seek civil penalties when companies are out of compliance.

I had the opportunity to attend a Direct Marketing Association (DMA) policy briefing on the subject this week and learned that the industry has already taken several self-regulation actions to protect consumers.   The DMA along with five other trade associations and the Better Business Bureau launched www.aboutads.info in late 2009. The program educates consumers about ads that are customized based on their online behavior and offers them a single source to opt-out of interest-based advertising from participating companies.  This program is very similar to the DMA Choice option designed to help consumers manage the type and amount of regular mail they receive. 

In addition to the advertising/direct marketing industry, technology companies are taking action.   For instance, Microsoft and Mozilla are incorporating do-not-track features in their Web browsers and new ventures such as Evidon have introduced products like Ghostery.com to let you know all the companies that are grabbing your data each time you visit a website. 

So, the question is, “legislation or industry self-regulation?”  Does peer-to-peer industry self-regulation and private-sector innovation negate the need for legislation and Federal Trade Commission regulation?  As marketers, this is a key issue as our growth will rely on continuing to be innovative and building brands by providing our customers with more relevant advertising.  As a consumer, it is important for you to understand how online advertising supports much of the free content, products and services you use online.  Will “one-size-fits-all” legislation suppress innovation and growth and limit consumer choices?  Will self-regulation be enough to protect your rights to “sensitive” information?   You all have a voice in influencing the outcome.