FACEBOOK IAB

WATCHING THE WATCHERS

CONGRESS FINALLY SETS ITS SIGHT ON PRIVACY AND THE INTERNET
Of everyone (advertisers, tech companies, Web sites—
everyone), Facebook almost certainly has the most skin
in this game. The site, after all, is all about giving up your
privacy. (And that’s what makes it so attractive to the
companies that have jumped on its bandwagon.) So no
If the industry is able to fore-
stall government regulation,
the Interactive Advertising
Bureau will likely be able to
take a good deal of the credit.
Personal privacy isn’t what it used to be. Just ask Mark Zuckerberg, the co-founder of Facebook, who called privacy on the Inter- wonder it seems to be preparing for battle. Its public poli- Earlier this month, it
net a “gray area.” He should know—Zuckerberg’s site has created a new culture of privacy, one in which people freely give up all cy shop, which began in 2007 as just one person, has announced that its online self-
grown to a team of eight people, employed to call on con- regulatory program will be
sorts of information.
gressional leaders and regulators. mandatory for its members,
But this is one area that might not stay gray for long. With privacy advocates warning that the Internet is turning into a capitalist which opens the door for the
version of Big Brother and users increasingly concerned about the amount of information they’re giving up about themselves, the FTC to move against IAB
issue is drawing elected officials like—well, like politicians to a camera. Though legislation has been kicking around for the last few members that step out of line.
years, this looks like the year there could be real traction, spurred on by an administration that has prioritized all things Internet. Those companies surely won’t
Meanwhile, the industry isn’t giving up without a fight, not when the Internet offers marketers an unprecedented opportunity to be happy about the program—
serve ads, services and content that people care about in a targeted way. So advertisers, industry associations and tech companies but on the other hand, it did
alike are suddenly moving quickly to self-regulate, hoping that if they get there first, they can keep the government from doing it get the FTC’s Vladek to give
for them.
This year’s round of debates opens this week in the Senate, where Sen. Jay Rockefeller, D-W. Va., who chairs the Commerce
Committee, is set to convene a hearing. Here’s our guide to the players. —Katy Bachman
SELF- the industry an approving pat
on the back.

REGULATORS
JOHN KERRY
Sen. Kerry, D-Mass., who chairs the Senate
Commerce Committee’s subcommittee on
communications (say that 10 times fast),
has been working on legislation since last MARY BONO MACK
July. He’s close to lining up Sen. John Though she’s best known as
McCain, R-Ariz., as a co-sponsor. Combine the widow of Sonny Bono,
Kerry’s status as a leader among Senate Rep. Bono Mack, R-Calif., is a GOOGLE
Democrats and the bipartisan flair that lot more than that, especial- Like Facebook, Google would have a lot to lose if the gov-
McCain’s approval would give, and his bill ly when it comes to online ernment cracks down and makes it difficult for the compa-
might be the odds-on favorite. privacy. She calls herself a BOB LIODICE ny to track users and sell ads based on their behavior. The
“high-tech policymaker” and ANA search giant has moved quickly in at least one way: It’s one
wields a lot of power when it Back in January, it was Liodice, president and of three browser makers to answer the FTC’s call for a Do
comes to this issue thanks to CEO of the 4A’s, who gave the industry the Not Track mechanism. The solution for its Chrome browser,

LEGISLATORS
ED MARKEY AND JOE BARTON
One day some enterprising studio executive could
make a good odd-couple sitcom based on the rela-
tionship between Reps. Markey, D-Mass., and
Barton, R-Texas. Unnatural allies, to say the least,
the two have teamed up on privacy as co-chairs of
the Congressional Privacy Caucus and have made
it their personal mission to keep privacy policies
honest. As a result of their inquiry into Facebook’s
new opt-in feature for sharing personal informa-
tion, Facebook tightened the policy and procedure.
her role as chair of the sub- wake-up call it appears to have needed. “Time is called Keep My Opt-Outs, is a plug-in that feeds directly
committee on commerce, of the essence,” Liodice warned his members in into the online ad industry’s self-regulatory program.
manufacturing and trade. a letter, saying if there isn’t support for self-reg-
She’s likely to serve as a bro- ulation, companies will soon find the govern-
ker between the House and ment stepping in.
GARY LOCKE
the Senate, ironing out any He’s likely on his way out the door and
differences between the two to China where, if the Senate confirms
chambers’ bills. him, he’ll serve as U.S. ambassador, but
in his time as Commerce secretary,
Gary Locke has worked hard to carve
DAVID VLADECK out a role setting online privacy policy.
You can thank (or curse, depend- Last April, he created the Internet
ing on your perspective) Vladeck Policy Task Force, and in December he
and the FTC for putting the fear issued a green paper calling for a
of God in the online ad industry. Privacy Bill of Rights.
A preliminary FTC report,
CLIFF STEARNS released in December, concluded
Rep. Stearns, R-Fla., has been dedicated to this issue for that the industry wasn’t moving
some time now—he’s been at it since 2005, in fact. In the fast enough on its own and pro- CAMERON KERRY
last Congress, he introduced a bill with former Rep. Rick posed a universal Do Not Track Given President Obama’s relative youth,
Boucher, D-Va. It didn’t get anywhere then, but Stearns will mechanism. That gave the self- hipness and his campaign’s reliance on the
use it as a template for new legislation in this Congress. regulators the push they seem Internet, it seemed likely that his adminis-
to have needed. “The online tration would make Internet issues a priori-
advertising industry should be ty. And it has. On the privacy front, this
commended,” Vladeck, the direc- includes making sure the White House can
tor of the FTC’s bureau of con- wield direct influence over other parts of
KERRY & STEARNS BILLS
Both bills emphasize self-regulatory privacy policies so that Web sites are up front sumer protection, said recently. the executive branch through an inter-
about their policies, let consumers know when personal information is collected and agency committee chaired by Kerry, who’s
how it’s used or shared, and gives them the opportunity to opt out.
KERRY BILL: Empowers the FTC to establish rules that require companies to have general counsel for the Commerce
strong security measures in place to protect consumers’ personal information. Department (not to mention brothers with
Consumers must also be notified when their information is collected, how it’s used or
shared, and be given the ability to opt out. STEARNS BILL: As part of an FTC self-regula-
tory program, companies would be required to notify consumers when personal informa-
tion is collected, how it is being used or shared, and given the choice to opt out.
REGULATORS John), and Christopher Schroeder, an assis-
tant attorney general.

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