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Privacy 2010
 

Privacy 2010

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An overview and update on privacy proposals following last of 3 FTC round tables.

An overview and update on privacy proposals following last of 3 FTC round tables.

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    Privacy 2010 Privacy 2010 Presentation Transcript

    • Update on the FTC Roundtables and Congressional Action March 18, 2010 WE KNOW THE INTERNET
    • The Past is Prologue
    • 1999 ♦ FTC Conference on Online Profiling ♦ OECD Consumer Protection Guidelines ♦ Network Advertising Initiative 2000 ♦ FTC Report to Congress 1999-2000 1999 2000 2001 2002 2004 2006 2007 2008 2009 2010
    • A Call for Regulation • Commends NAI but . . . • [Recommends] legislation that would set forth a basic level of privacy protection for all visitors to consumer-oriented commercial Web sites with respect to profiling. – Basic standards of practice governing the collection and use of information online for profiling, and provide an implementing agency with the authority to promulgate more detailed standards – [Including] authority to grant safe harbors to self-regulatory principles which self- effectively implement the standards of fair information practices articulated in the legislation and subsequent rulemaking.
    • 2001 ♦ FTC Conference on Consumer Data ♦ NAI adopts opt-out cookie ♦ New Chairman Muris – legislation “premature” 2002 ♦ “Dewey the Turtle” 2001-2005 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
    • Behavioral Targeting
    • Seattle Beacon March 18, 2010 PAGE TWO 34! SEATTLE’S SOGGY SODS CITY BREAKS RECORD FOR CONSECUTIVE RAINY DAYS SEATTLE. Forget Spain, the rain falls mainly in Seattle as the Emerald City “enjoyed” its 34th consecutive day of rain breaking the 1953 record. Sonny Smith, President of the Visitors and Convention Bureau was quick to point out that even with the record, the city still gets far less total rain than cities such as We got plenty Miami. In fact, Seattle is not even among in Palm Springs the top 101 cities for total rainfall. So remember, it could be worse – you could be www.sunsunsun.com in Miami.
    • Seattle Beacon March 18, 2010 PAGE TWO 12TH Annual Chainsaw Juggling Convention 34! SEATTLE’S SOGGY SODS CITY BREAKS RECORD FOR CONSECUTIVE RAINY DAYS SEATTLE. Forget Spain, the rain falls mainly in Seattle as the Emerald City “enjoyed” its 34th consecutive day of rain breaking the 1953 record. Sonny Smith, President of the Visitors and Convention Bureau was quick to point out that even with the record, the city still gets far less total rain than cities such as FRIDAY MARCH 19TH Miami. In fact, Seattle is not even among KING COUNTY HOSPITAL & the top 101 cities for total rainfall. So CONVENTION CENTER remember, it could be worse – you could be in Miami.
    • By the Numbers 45 $44.0 Increased Click-through rates 40 35 670% to 1000% 30 25 20 $17.0 Increased Conversions 15 $7.8 10 $0.2 400 to 900% 5 10.7 14.2 16.8 0 2005 BUT . . . 66% of consumers do not 2008 2010 2012 want websites they visit “to show you ads that are tailored to your interests Pct of Display Ads US Ad Spending ($100MM)
    • Renewed Focus on BT
    • 2006 ♦ CDD Files FTC Complaint Attacking BT 2007 ♦ Merger Mania ♦ ehavioral Advertising Workshop 2006-2007 ♦ CDD “Do Not Track” Proposal ♦ FTC Proposes BT Self-Regulatory Guidelines ♦ Facebook’s Beacon Program 2006 2007 2007 2007 2007 2007 2007 2008 2009 2010
    • 2008 ♦ Industry Pushback on Self Regulatory Principles ♦ NAI Updates Principles ♦ NebuAd and BT 2.0 Blow up on Capitol Hill ♦ FTC Workshop on Mobile Marketplace 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009
    • JAN-AUG 2009 ♦ FTC Releases Revised BT Guidelines ♦ Leibowitz Repeated Warnings to Industry ♦ House hearings, explore BT ♦ IAB, DMA, AAAA Release BT Guidelines 2009 JAN FEB MAR JUNE JULY SEPT NOV DEC DEC DEC
    • FTC’s Revised Proposed Self-Regulatory Guidelines (2009) Every website where data is collected for behavioral advertising should provide a clear, concise, consumer-friendly, and prominent statement that data about consumers’ activities online is being collected at the site for use in providing advertising about products and services tailored to individual consumers’ interests, and consumers can choose whether or not to have their information collected for such purpose. Reasonable Security, and Limited Data Retention, for Consumer Data Affirmative Express Consent for Material Changes to Existing Privacy Affirmative Express Consent to (or Prohibition Against) Using Sensitive Data for Behavioral Advertising
    • SEPT - DEC 2009 ♦ FTC Announces Roundtable ♦ Privacy Wars ♦ Facebook Revised Privacy Policy ♦ FTC Panel on Newspaper Industry ♦ FTC/OECD Conf. on 10th Anniv. Of Guidelines ♦ First FTC Roundtable 2009 JAN FEB MAR JUNE JULY SEPT NOV DEC DEC DEC
    • Industry Self Regulatory Principles Education Transparency Consumer Control Data Security Material Changes Sensitive Data Accountability
    • Round One December 7th, 2009 Washington, D.C.
    • FTC Chairman Leibowitz • We're at another watershed moment in privacy, and the time is right for the commission ... to take a broader look at privacy . . . Our minds are open. • We all agree that consumers don't read privacy policies, or EULAs for that matter. I've been a supporter of opt-in for quite some time. opt- time.
    • FTC Commissioner Commissioner Jones-Harbour I believe action has not been a high enough priority to date. [The] United States needs comprehensive privacy legislation. If we continue the piecemeal approach to privacy in this country, we merely push aside the underlying issues. Industry attempts to provide notice and choice to consumers have been insufficient thus far. We have strayed far from the Fair Information Practices that should serve as a baseline for any comprehensive privacy legislation.
    • Shift in Focus – Use not Collection ` We are taking a look at a number of technologies and business practices— including social networks, cloud computing, mobile, data broker relationships, and behavioral advertising—and will assess Christopher Olsen both the benefits and risks of Asst. Director - Division of Privacy and Identity Protection those practices.
    • 2010 ♦ Edith Ramirez and Julie Brill Confirmed ♦ Google Buzz and Facebook Investigations ♦ Netflix Settlement ♦ Second and Third Roundtable ♦ Waiting for Godot Stearns 2009 2009 2010 2010 2010 2010 2010 2010 2010 2010 2010
    • Round Two January 28, 2010 UC Berkeley School of Law Berkeley, California
    • Vladek Warns of Enforcement Actions Consumers don’t understand commercial information-collection practices (ex: data brokers, behavioral targeting). Lengthy policies are not effective; and FTC is preparing to launch enforcement actions against David Vladek companies engaged in “practices Director, Bureau of Consumer Protection that undermine the tools that consumers can use to opt out of behavioral advertising.”
    • Round Three March 17, 2010 Washington, D.C.
    • “Irresponsible Practices” Commissioner Jones-Harbour Jones- Google’s Buzz and Facebook Privacy Policy change “irresponsible”. Concerned that “technology companies are learning harmful lessons from each other’s attempts to push the privacy envelope. continue to launch products where their guiding privacy principle appears to be, ‘Throw it against the wall, see if it sticks – and if not, we can always pull it back.’ Deeds speak louder than words, and this is turning into a dangerous game of ‘copycat’ behavior. And unlike a lot of tech products, consumer privacy cannot be run in beta.” Calls for FTC to adopt position of intolerance towards such behavior. SSL security should be default standard in cloud computing.
    • What’s Next? David Vladek Chairman Leibowitz FTC not certain where it will “I have a sense, and it’s still go and plans to "sit back" and amorphous, that we might head think about the detailed record toward opt-in.” before making public a set of detailed recommendations by June or July. CONGRESS ???
    • New Commissioner Julie Brill Senior Deputy Attorney General and Chief of Consumer Protection and Antitrust for the North Carolina Department of Justice Co-chair of the National Association of Attorneys General Privacy Working Group and Fair Credit Assistant Attorney General – Vermont
    • Congressional Limbo March 13, 2009: Privacy bill a top priority May 6, 2009: Working on draft privacy bill. October 1, 2009: “Privacy legislation affecting the online advertising industry Rep. Rick Boucher (D-Va) Chairman House Energy and could be submitted by November . . . Commerce Committee’s [a]ccording to statements made recently Subcommittee on Technology and the Internet. by Rep. Rick Boucher.” January 28, 2010: Boucher "very close" to finishing a discussion draft of the legislation.
    • Internet Law Center 100 Wilshire Blvd., Suite 950 Santa Monica, CA 90401 www.internetlawcenter.net Bennet Kelley (310) 452-0401 bkelley@internetlawcenter.net WE KNOW THE INTERNET
    • Appendix ♦ Consumer Data Ecosphere Slides ♦ About the Internet Law Center ♦ About Bennet Kelley
    • Consumer Data Ecosphere
    • About the Internet Law Center The Internet Law Center is dedicated to helping businesses navigate the evolving legal standards for today’s digital economy, while also contributing to the development of the policies of tomorrow. The firm serves a diverse client base that includes startups and public companies both online and offline across North America and Asia. The professionals of the Internet Law Center possess years of practical experience as lawyers and entrepreneurs with internet companies and have played a leading role in shaping Internet law and policy. This unprecedented combination of business, legal and policy experience makes the Internet Law Center uniquely qualified to provide the professional advice needed to address emerging issues of internet law in an uncertain economy. Sign up for the Cyber Report – our award winning newsletter which was named one of the Top 100 Internet Law Resources. It is also available on our blog (along with other materials).
    • About Bennet Kelley Bennet is one of the nation’s leading Internet attorneys and founder of the Internet Law Center. He is Co-Chair of the California Bar Cyberspace Committee and a frequent speaker on the latest developments in Internet law at conferences throughout North America. Bennet also is a regular guest on Webmaster Radio’s “InBoxed”. Bennet has played a leading role in shaping Internet law and policy having testified and lobbied on Internet issues in Washington and Sacramento, winning praise from a key Congressional committee for his contributions to federal spyware legislation. In addition, the Internet Law Center’s bi-weekly newsletter, Cyber Report, was named one of the top 100 Internet law resources and recognized by the LA Press Club.