Private eye
Online privacy is a pretty hot issue right now, primarily due to all the heat Facebook is getting over its opaque privacy tools and settings. Advertisers want their ads to reach the right people and they're prepared to pay, to make that happen. The incentive for companies like Facebook to share as much information about their users as possible with advertisers is great.
So the publication, by the Office of Fair Trading (OFT), of its views on online targeted advertising is pretty timely. It concludes that, while the industry - via the Internet Advertising Bureau (IAB) - is doing a decent job of regulating itself, consumers need to be given more control over how their personal information is used.
"The OFT is keen to engage with industry players and consumer groups while behavioural advertising is in its relative infancy, and before targeted pricing takes hold, so that the market develops in a way that protects consumers from bad practice," said Heather Clayton, OFT senior director.
"Discussions now about the potential for both benefits and harm, and how consumer protection legislation applies, will stand us in good stead in the event that industry action proves ineffective or targeted pricing becomes a reality."
"We welcome the OFT's strong support and endorsement of the IAB's work to create a self-regulatory framework and good practice for behavioural advertising," said Nick Stringer, director of regulatory affairs at the IAB. "The OFT's document is a step forward for the industry and we will work together to raise awareness of the choices that consumers have online and create consistency across the industry.
"IAB research found that any consumer concerns decrease when presented with the relevant information about behavioural advertising as well as the tools to turn it off. The online advertising industry has already made a serious commitment and investment to safeguard consumer privacy whilst delivering a more relevant online experience."
You can access the full OFT report here (pdf), and the IAB's guide to online behavioural advertising here.
This news also coincides with Twitter finally looking to cash-in on its popularity by restricting the ability of third parties that use the Twitter API to inject paid tweets into a Twitter stream. While there is talk of protecting the user experience, this undeniably increases the ability of Twitter to control the commercial side of things.
