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Affiliate Marketing Industry Coalition Comments on Proposed Do-Not-Track Legislation

Linda Buquet

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<em>This is a guest post by <a href="http://www.hinchnewman.com/internet-attorney/richard-b-newman/" target="_blank">Richard B. Newman</a> - <a href="http://www.hinchnewman.com/practice-areas/internet-law/internet-performance-marketing-and-advertising-law/" target="_blank">Affiliate Marketing Lawyer</a></em>

In December 2010, the Federal Trade Commission ("FTC") published a staff report with recommendations to stengthen U.S. consumer privacy protections, including an Internet Do-Not-Track mechanism. The consumer advocacy community has broadly supported the creation of a government mandated Do-Not-Track mechanism focused upon the emergence of online behavioral advertising, which involves tracking consumers' Internet activities for targeted marketing purposes.

On February 18, 2011, one week after Rep. Jackie Speier (D-Calif.) introduced the ?Do Not Track Me Online Act of 2011,? a coalition of marketing groups submitted comments to the FTC, in essence, stating that a mechanism allowing consumers to avoid having their Internet activities followed by advertisers would severely undercut industry efforts. The aforementioned marketing groups also cited the fact that consumers already possess the ability to prevent such tracking under a recently-launched industry program by the online marketing industry. The self-regulatory program with a central web-page, <a href="http://www.aboutads.info/" target="_blank">aboutads.info</a>, allows consumers to opt-out of behavioral advertising by participating companies.

The coalition, made up of the Direct Marketing Association, Association of National Advertisers, Interactive Advertising Bureau, American Advertising Federation, and Association of Advertising Agencies, stated that ?the federal government should not undercut the industry's commitment to the Program by creating a duplicative Do-Not-Track mechanism through legislation or regulation, especially when appropriate mechanisms already exist in the marketplace and were themselves designed to meet the high standards and principles proposed by the Commission in its final report on online behavioral advertising two years ago.? Importantly, the coalition clarified the manner in which a government Do-Not-Track mechanism could interfere with targeted marketing revenues that actually support free Internet content.

According to the coalition, the Council of Better Business Bureaus is expected to monitor compliance across the Internet, beginning March 31, 2011.

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<em><a href="http://www.richardbnewman.com/" target="_blank">Richard B. Newman</a> is an <a href="http://hinchnewman.com/" target="_blank">Internet Lawyer</a> and
Internet Law Specialist at Hinch Newman LLP</em>
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