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Plugged-In: Internet Privacy Advocates Raise Alarm
Updated 4:34 PM ET November 8, 1999
Current quotes (delayed 20 mins.) DCLK  142 1/16  -7 15/16  (-5.29%)

By Aaron Pressman
WASHINGTON (Reuters) - Some of the Internet advertising industry's dirty
laundry was getting a public airing Monday, as the debate continued over
whether self-regulation is adequately protecting consumer privacy.

A public workshop organized by the Federal Trade Commission will examine
complaints about so-called profiling, or the practice of tracking consumers'
movements online and compiling databases of their activities for use in
marketing.

Privacy advocates complain that high-tech profiling on the Internet has
opened the door to potentially serious abuses. In many cases, profiles are
compiled not by Web sites consumers choose to visit but by the advertising
firms that place banner ads on those sites, they said.

"Irreparable damage will be done to privacy if Web advertisers are allowed to
continue assembling their electronic dossiers," said Jason Catlett, president
of the pro-privacy group Junkbusters. Catlett wants the FTC to prohibit
profiling until new laws are enacted to limit use of consumers' private
information.

Deirdre Mulligan, staff counsel of the nonprofit Center for Democracy and
Technology in Washington, said the workshop could also be an educational
vehicle to enlighten consumers about profiling and steps that can be taken to
"opt out."

"Individuals will need to be given greater control over the use of personal
information for privacy to be protected in the future," Mulligan said. "We
intend to give individuals the information they need to exercise their
privacy rights as much as possible in the current situation."

Advertising firms and other Web sites create online profiles by assigning
each consumer that visits their site a unique identification tag. The tag is
placed on the consumer's own computer in a text file known a cookie file.

When a consumer requests a Web page from a profiler's site, the computer
hosting the site checks the consumer's computer for a cookie identification
tag.

If no tag is found, the computer places one in the cookie file. If a tag is
found, the computer begins tracking the requests and movements of the
consumer around the site, adding the information to data from previous visits
by that consumer.

The tracking and movements can also be combined with more personal
information like name, mailing address, age and e-mail address, that a
consumer gave as part of registering with a site.

Industry officials argue that profiling is no cause for alarm, since the
practices are fully disclosed in the privacy policies of most Web sites and
consumers can usually choose not to participate or "opt out."

And use of online profiles can help ensure that consumers see ads for
products close to their interests.

"Consumers are better served by not receiving information that is of no
interest to them," Daniel Jaffe, executive vice president of the National
Association of Advertisers, explained in comments to the FTC.

New parents might want information about disposable diapers that would not
appeal to people with no children, for example, Jaffe said.

Opt-outs are usually explained in a Web site's privacy policy.

On the site of Internet advertising firm DoubleClick Inc., for example, a
consumer can blank out the unique tracking number placed in their cookie file
by following a link from the company's privacy policy at
http://www.doubleclick.com/privacy(underscore)policy/.

At many sites, however, opting out of data collection means opting out of
visiting the site.

At The New York Times site, for example, a consumer can remove personal
information provided at registration, thereby canceling the registration. The
site currently pledges not to share specific personal data with third
parties, giving advertisers on its site only aggregated information about who
saw certain banner ads, for example.





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