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FTC PRIVACY ROUNDTABLE
                     BEHAVIORAL   FEDERAL TRADE
PRIVACY   CONSUMER                                REGULATION TRANSPARENCY
                      TARGETING    COMMISSION



                     Background and Summary
The Past
is Prologue
1999
                          ♦     FTC Conference on Online Profiling
                          ♦     OECD Consumer Protection Guidelines
                          ♦     Network Advertising Initiative


       1999-2000                             2000
                          ♦     FTC Report to Congress




1999      2000     2001       2002    2004     2006      2007   2008   2009
                              2005
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 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
                          ♦      Chairman Muris – legislation “premature”

                                             2002-2005
       2001-2005
                          ♦      “Dewey the Turtle”




1999      2000     2001       2002    2004     2006     2007     2008       2009
                              2005
2006
       ♦   CDD FTC Complaint attacking BT
       ♦   Protecting Consumers in Next TechAde
       ♦   AOL Release of Search Histories

                                                              2006




1999       2001    2002     2003    2005     2006   2007   2008      2009
2000                        2004
2007
   ♦   Merger Mania
   ♦   ehavioral Advertising Workshop
   ♦   CDD “Do Not Track” Proposal
   ♦   FTC Proposes BT Self-Regulatory Guidelines
   ♦   Facebook’s Beacon Program                              2007




2004    2007     2007     2007     2007     2007    2007   2008      2009   2009
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
SEPT - DEC 2009
      ♦   FTC Announces Roundtable
      ♦   Privacy Wars
      ♦   FTC Panel on Newspaper Industry
      ♦   FTC/OECD Conf. on 10th Anniv. Of Guidelines
                                                                2009




JAN        FEB     MAR     JUNE     JULY     SEPT       NOV   DEC      DEC   DEC
Privacy Wars
Privacy Wars
Questions for Comment
              • What risks, concerns, and benefits
Roundtable #1   arise from the collection, sharing,
                and use of consumer information?


                 • Are there commonly understood or
                   recognized consumer expectations
                   about how information concerning
                   consumers is collected and used?


                 • Do the existing legal requirements
                   and self-regulatory regimes in the
                   United States today adequately
                   protect consumer privacy interests?
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
                            opt-
  some time.
FTC 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
Christopher Olsen
Asst. Director - Division of
                                  assess both the benefits
Privacy and Identity Protection   and risks of those
                                  practices.
Roundtable #2
January 28, 2010
UC Berkeley School of Law
Berkeley, California
Questions for Comment
 Roundtable # 2   • What role do privacy enhancing
                    technologies play in addressing
                    Internet-related privacy
                    concerns?

                  • What challenges do innovations
                    in the digital environment pose
                    for consumer privacy, and how
                    can those challenges be
                    addressed without stifling
                    innovation or otherwise
                    undermining benefits to
                    consumers?
THANK YOU!
100 Wilshire Blvd., Suite 950
Santa Monica, CA 90401
www.internetlawcenter.net
www.ilccyberreport.wordpress.com (blog)

Bennet Kelley
(310) 452-0401
bkelley@internetlawcenter.net
Appendix


♦   Consumer Data Ecosphere Slides
♦   CRS Report on Advertising in Digital Age
♦   About the Internet Law Center
♦   About Bennet Kelley
Consumer Data Ecosphere
http://www.fas.org/sgp/crs/misc/R40908.pdf
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) at www.ilccyberreport.wordpress.com.
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.

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FTC Privacy Roundtable Background And Summary

  • 1. FTC PRIVACY ROUNDTABLE BEHAVIORAL FEDERAL TRADE PRIVACY CONSUMER REGULATION TRANSPARENCY TARGETING COMMISSION Background and Summary
  • 3. 1999 ♦ FTC Conference on Online Profiling ♦ OECD Consumer Protection Guidelines ♦ Network Advertising Initiative 1999-2000 2000 ♦ FTC Report to Congress 1999 2000 2001 2002 2004 2006 2007 2008 2009 2005
  • 4. 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 effectively implement the standards of fair information practices articulated in the legislation and subsequent rulemaking.
  • 5. 2001 ♦ FTC Conference on Consumer Data ♦ NAI adopts opt-out cookie ♦ Chairman Muris – legislation “premature” 2002-2005 2001-2005 ♦ “Dewey the Turtle” 1999 2000 2001 2002 2004 2006 2007 2008 2009 2005
  • 6. 2006 ♦ CDD FTC Complaint attacking BT ♦ Protecting Consumers in Next TechAde ♦ AOL Release of Search Histories 2006 1999 2001 2002 2003 2005 2006 2007 2008 2009 2000 2004
  • 7. 2007 ♦ Merger Mania ♦ ehavioral Advertising Workshop ♦ CDD “Do Not Track” Proposal ♦ FTC Proposes BT Self-Regulatory Guidelines ♦ Facebook’s Beacon Program 2007 2004 2007 2007 2007 2007 2007 2007 2008 2009 2009
  • 8. 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
  • 9. 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
  • 10. SEPT - DEC 2009 ♦ FTC Announces Roundtable ♦ Privacy Wars ♦ FTC Panel on Newspaper Industry ♦ FTC/OECD Conf. on 10th Anniv. Of Guidelines 2009 JAN FEB MAR JUNE JULY SEPT NOV DEC DEC DEC
  • 13. Questions for Comment • What risks, concerns, and benefits Roundtable #1 arise from the collection, sharing, and use of consumer information? • Are there commonly understood or recognized consumer expectations about how information concerning consumers is collected and used? • Do the existing legal requirements and self-regulatory regimes in the United States today adequately protect consumer privacy interests?
  • 14. 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 opt- some time.
  • 15. FTC 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.
  • 16. 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 Christopher Olsen Asst. Director - Division of assess both the benefits Privacy and Identity Protection and risks of those practices.
  • 17. Roundtable #2 January 28, 2010 UC Berkeley School of Law Berkeley, California
  • 18. Questions for Comment Roundtable # 2 • What role do privacy enhancing technologies play in addressing Internet-related privacy concerns? • What challenges do innovations in the digital environment pose for consumer privacy, and how can those challenges be addressed without stifling innovation or otherwise undermining benefits to consumers?
  • 19. THANK YOU! 100 Wilshire Blvd., Suite 950 Santa Monica, CA 90401 www.internetlawcenter.net www.ilccyberreport.wordpress.com (blog) Bennet Kelley (310) 452-0401 bkelley@internetlawcenter.net
  • 20. Appendix ♦ Consumer Data Ecosphere Slides ♦ CRS Report on Advertising in Digital Age ♦ About the Internet Law Center ♦ About Bennet Kelley
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  • 30. 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) at www.ilccyberreport.wordpress.com.
  • 31. 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.