The internet has created an environment where more personal data than ever is available for collection analysis and processing. Businesses that rely on personal information know that many consumers will trade their personal information for a chance to win competitions, to get discounts on goods or indeed to get other rewards. Whilst users may not like the concept of profiling they still do not fully understand the extent which their personal data is processed, analysed and utilised in Web 2.0.
Recent studies and draft legislation show a heightened awareness amongst consumers and regulators of the intrusiveness of personality profiling in the Web 2.0 environment. Research conducted by the University of Pennsylvania and the Berkeley Centre for Law and Technology has found that 60% of adult US citizens do not want advertising to be tailored to what advertisers presume their interests are from profiling.
The Chairman of the sub-committee on communications technology and the internet, Rick Boucher (D -Va.) has discussed introduction of measures which will extend privacy rights to internet users and limit online behavioural advertising activities in the US. Add to the pot the current draft recommendation from the EU Council of Ministers in relation to the protection of individuals as regards profiling and you have a recipe for serious debate on the pros and cons of online profiling and behavioural advertising.
Hot on the heels of this comes the All Party Parliamentary Communications Group (apComms) report entitled "Can we keep our hands off the net?"published in the UK in October 2009. The report is the result of months of consultation hearings with regulators, industry, academics and consumers on future internet regulations particularly as relates to privacy, online behavioural advertising and child abuse. Amongst other things the apComms report addresses the issue of online behavioural advertising and quotes statistics from the Internet Advertising Bureau (IAB), the UK trade body for digital advertising that UK behavioural advertising currently makes up between 10-15% of all online display advertising which is likely to grow to 30% by 2013; and also focuses on the Phorm phenomenon, commenting that ISPs are aware of the negative effect of too much profiling and also highlighting that despite requests for Google to be involved in the process they did not participate.
Some apComms report recommends are that good practice principles such as those published by IAB should be adopted as widely as possible, that is-
- Clear and unambiguous notice must be given when data is collected for online behavioural advertising purposes;
- An opt-out mechanism must be provided at the very least and in some circumstances informed consent must be obtained;
- Users must be provided with clear and simple information about the use of their data for online behavioural advertising and how they can opt-out.
A specific focus in the apComms report relates to children's privacy online and marketing to children. A recommendation of the report is that e-Security should be part of the national curriculum and that the UK counsel for child internet safety should consider how behavioural advertising that is aimed at children and young people should be regulated.
Finally the apComms report recommends that the UK government review the existing legislation applying to behavioural advertising and bring forward new rules as needed to ensure that the systems are only operated on an explicit informed opt-in basis.