Tag Archives: Advertisement

Microsoft to Introduce Tracking Protection with IE9

On December 7, 2010, Microsoft announced in a blog post that Internet Explorer 9 will feature a new “opt-in mechanism” and “Tracking Protection Lists” to help consumers control tracking of their online activity.  Since the Federal Trade Commission released its privacy report last week, there has been considerable debate regarding consumer protection on the Internet, especially with respect to the “Do Not Track” concept.  Microsoft’s blog post states, “We believe that the combination of consumer opt-in, an open platform for publishing of Tracking Protection Lists (TPLs), and the underlying technology mechanism for Tracking Protection offer new options and a good balance between empowering consumers and online industry needs.”

Tags: , , ,

FTC Issues Landmark Privacy Report

On December 1, 2010, the Federal Trade Commission released its long-awaited report on online privacy entitled “Protecting Consumer Privacy in an Era of Rapid Change: A Proposed Framework for Businesses and Policymakers.”  Observers expected the report to address the concept of privacy by design, the burdens placed on consumers to read and understand privacy notices and make privacy choices, the provision of individual access to personal data and the rights of consumers with respect to Internet tracking.  The FTC report introduces a privacy framework to “establish certain common assumptions and bedrock protections on which both consumers and businesses can rely as they engage in commerce.”  It includes the following elements: Continue reading…

Tags: , , , ,

Hunton & Williams Partner Aaron Simpson Addresses New York Privacy Officers’ Forum on Emerging Behavioral Advertising Issues

On November 4, 2010, the New York Privacy Officers’ Forum hosted a live program to discuss emerging issues in behavioral advertising.  Peter Weingard from online advertising technology and services company Collective began the program with a presentation highlighting the evolution of the advertising industry and the benefits of online behavioral advertising to advertisers, publishers and consumers.  Hunton & Williams partner Aaron Simpson followed Mr. Weingard with a presentation focusing on the emerging legal issues associated with the technology, including a discussion of the FTC’s behavioral advertising guidance, the new BEST PRACTICES Act legislation and international issues on the horizon.

Tags: , , ,

Advertising Devices Used for Profiling Require French DPA’s Prior Approval

On October 4, 2010, the French Data Protection Authority (the “CNIL”) stated in a press release that a recently enacted environmental law (Act No. 2010-788 of July 12, 2010, known as “Grenelle II”) expands the CNIL’s authority to regulate devices used to measure the viewership of advertisements in public places like shopping malls, train stations and airports.  Grenelle II introduces a new provision under Article L. 581-9 of the French Environmental Code, which states: “Any system that automatically measures the audience of an advertising device or which analyzes the typology or behavior of individuals passing within the vicinity of such advertising device requires prior approval of the CNIL.”

Continue reading…

Tags: , , , ,

German Federal Network Agency Fines Two Companies €194,000 for Violating Cold Calling Ban

On July 27, 2010, the German Federal Network Agency, the Bundesnetzagentur (or “BNetzA”), issued a press release stating that it had recently levied €194,000 in administrative fines in two cases against companies accused of violating a ban on cold calling.  The cases involved consumer complaints implicating the companies in several illegal acts.  The companies claimed they had obtained prior consent from the consumers they contacted.  The BNetzA, which is the regulatory office for electricity, gas, telecommunications, post and railway markets in Germany, rejected the companies’ argument on the grounds that the “consent” was based on the consumers’ implicit acceptance of the terms of use associated with certain Internet games.  The terms of use included a provision regarding a participant’s consent to telemarketing by partners, sponsors and other companies.  The BNetzA stated that, because these terms of use did not satisfy the legal requirements for consent, the company had not obtained valid consent to call the consumers.

Continue reading…

Tags: , , , , ,

Article 29 Working Party Issues Opinion on Online Behavioral Advertising

On June 24, 2010, the Article 29 Working Party adopted Opinion 2/2010 (the “Opinion”) providing further clarification on online behavioral advertising.  The Working Party also issued a press release on this topic.  Although the scope of the Opinion is limited to online profiling, its interpretation of Article 5(3) of the amended e-Privacy Directive provides some useful clarifications regarding the legal framework applicable to online behavioral advertising and the use of cookies.  We provide a short analysis of the Opinion below.

Opt-in?  Browser setting as opt-in?  Opt-out?  The Opinion clarifies the Working Party’s interpretation of the new Article 5(3) and Recital 66 of the e-Privacy Directive.  According to the Working Party, Article 5(3) and Recital 66, along with the General Data Protection Directive (“Directive 95/46/EC”), require prior opt-in consent since “prior opt-in consent mechanisms are better suited to deliver informed consent.”

Continue reading…

Tags: , , ,

German Federal Network Agency Imposes €500,000 in Fines for Telemarketing Violations

On January 29, 2009, the German Federal Network Agency (the “Agency”) stated in a press release that it has imposed fines for unauthorized telephone advertising in six cases.  This brings the total to nine procedures (resulting in €500,000 in fines) during the months of December 2009 and January 2010, and marks the first time the Agency has imposed sanctions for violations of the prohibition on unauthorized telephone advertising and for breach of the caller ID requirement for marketing calls.

Continue reading…

Tags: , ,

New Class Action Complaint Alleges Privacy Violations by ISP Using NebuAd Device

A class action complaint filed on December 9, 2009, in Illinois federal court alleges that WideOpen West, Finance, LLC ("WOW"), an Internet service provider, violated its users’ privacy by "installing spyware devices on its broadband networks."  Valentine v. WideOpen West (N.D. Ill., No. 1:09-cv-07653).  This action against WOW follows the October 6, 2009, dismissal by a district court in California of similar claims against six out-of-state ISP defendants (including WOW) filed in November 2008 by the same lead plaintiff.  The court in Valentine v. NebuAd, Inc. et al. (N.D. Cal., No. 3:08-cv-05113) found that the ISP defendants were not subject to personal jurisdiction in California, leaving the now-defunct NebuAd as the only defendant in that case.  Plaintiff Valentine has now brought this action against WOW in the Northern District of Illinois.

Continue reading…

Tags: , , , ,

New FTC Blog Guidelines Affect Companies Without Blogs

On October 5, 2009, the Federal Trade Commission (“FTC”) issued amendments to its Guides for the Use of Endorsements and Testimonials in Advertising (“Guides”).  Reactions to the amendment have primarily focused on the provisions that require bloggers to disclose their relationship with companies whose products they endorse.  Largely absent from the commentary, however, have been observations regarding theories articulated in the amendments that demonstrate the risk of enforcement for companies that do not have a blog and that do not use third-party bloggers for promotion.

Continue reading…

Tags: , ,

Report Finds America Rejects Targeting Setting-Up Policy Debate

In its announcement that it would convene a series of public roundtables to address developing privacy issues, the Federal Trade Commission requested empirical data on consumer privacy expectations. In response to that request, researchers at the University of California at Berkeley and the University of Pennsylvania have released a study entitled "Americans Reject Tailored Advertising." Survey data reported in the study found that 66% of Americans reject targeted advertising online; 86% reject such ads when told they are made possible through online data collection. The study also makes the case that Americans would like much stricter laws governing the data collected online and higher penalties for failures to comply.

The study did not explore consumers’ perceptions of the role played by targeted advertising in providing free content to users or their willingness to pay for content in the absence of that advertising support. The House Energy and Commerce Committee has announced its intent to address these issues in the current session of Congress. In the absence of alternative empirical data, this study will feature prominently in the policy debate about regulating behavioral targeting in the U.S. and Europe.

Tags: , ,