The Department of Commerce’s report on privacy has received praise from the Interactive Advertising Bureau lobbying group. As reported by Politico, “IAB’s Mike Zaneis [said] the Commerce Department’s new privacy report represents “a really important step in what has been a really inclusive and productive process by commerce and the administration.” Zaneis said he felt Commerce recognized (more than the FTC did) the importance of “economic growth” in recommendations about what to do next with online privacy. On the proposed Privacy Policy Office, the IAB-er further told us he felt it strikes the right balance – it is a “great idea to coordinate various stakeholders,” he said – and it creates a relationship where Commerce coordinates the rulemaking while the FTC handles enforcement. “What this has done is identify the FTC as an enforcement, not as a rulemaking or legislative, body,” he told us.
The IAB and other data collection groups are fearful of the FTC, because that agency has finally caught up to speed on the digital marketing, consumer protection and privacy issue. Its Chairman Jon Leibowitz supports do not track (something the Commerce paper didn’t really discuss); the Bureau of Consumer Protection head appointed by Mr. Leibowitz is a serious and skilled attorney who is concerned about consumers. The IAB would rather have the business-interest friendly Department of Commerce be the broker of a deal that they hope will affirm the data profiling and tracking status quo.
The Obama Administration is going to have to ensure that any new multi-stake holder process provides the consumer and privacy advocates not only parity with industry, but access to resources and information so the process will be fair to consumers. Discussions will require transparency and accountability. The FTC should not be sidelined–although we want to see both that agency and the Commerce Department do a better job standing up to protect consumers and their privacy.
Finally, the Obama Administration must put the interests of European and Asian/Pacific consumers and citizens before the commercial concerns of U.S. online marketing companies. The U.S. shouldn’t be a digital enabler that allows online ad companies to track and target users abroad for financial, drug, junk food and other products without serious safeguards. A higher global standard of privacy and ethical conduct of the U.S. government is required.