Leading Health, Privacy, and Consumer Groups Call on FTC to Protect Adolescent Privacy online

For Immediate Release:  Feb. 18, 2011
Child, Health and Consumer Advocates Ask FTC for Teen Privacy Protections, including Do-Not-Track and No Behavioral Targeting

Today a Coalition of Child, Health and Consumer Advocates filed comments on the Federal Trade Commission’s proposed privacy framework asking for increased privacy protections for adolescents.   The coalition includes leading advocates such as the Center for Digital Democracy, the American Academy of Child and Adolescent Psychiatry, American Academy of Pediatrics, Children Now, and the Consumer Federation of America.

Privacy protections are needed as teens are increasingly subjected to privacy invasions online. Teens are using new media technologies for key social interactions and to explore their identities. This increased use of digital media subjects them to wholesale data collection and profiling of even their most intimate interactions with friends, family, and schools. Meanwhile, recent research in psychology and neuroscience reveals that teens are more prone to risky behavior when their anxieties and peer relations are exploited. Privacy protections are needed to keep the online world social and safe.

Companies should not use data to behaviorally profile teens. The framework should also provide enhanced choice for adolescents, including a Do Not Track feature. In implementing “privacy by design,” companies should consider the needs and vulnerabilities of teens.  They should address those vulnerabilities by, for example, minimizing the amount of data collected from teens.  Data that is collected should be retained for only short periods and should be afforded greater security.

“Teens live online today,” said Guilherme Roschke, attorney for CDD. “This time of development and maturation requires privacy protections. Teens cannot go it alone against the vast data collection and profiling infrastructure of new media technologies that not even adults can understand.”

“Because of their avid use of new media, adolescents are primary targets for digital marketing,” explained co-signer Kathryn C. Montgomery, Ph.D. “The unprecedented ability of digital technologies to track and profile individuals across the media landscape, and to engage in sophisticated forms of targeting, puts these young people at special risk of compromising their privacy.”

The full coalition includes:

Center for Digital Democracy, American Academy of Child and Adolescent Psychiatry, American Academy of Pediatrics, Berkeley Media Studies Group, a project of the Public Health Institute, Children Now, Consumer Federation of America, Consumer Watchdog, David VB Britt, Retired CEO, Sesame Workshop, Ellen Wartella, Kathryn Montgomery, National Policy & Legal Analysis Network to Prevent Childhood Obesity, a project of Public Health Law & Policy, The Praxis Project, Privacy Rights Clearinghouse, Public Good, Public Health Institute, Tamara R. Piety, and World Privacy Forum

Guilherme Roschke
Staff Attorney / Fellow
Institute for Public Representation
First Amendment and Media Center
Georgetown University Law Center
T:(202) 662-9543
F:(202) 662-9634
gcr22@law.georgetown.edu
http://www.law.georgetown.edu/clinics/ipr/
**********

Time Warner Cable Funds Scholars to Boost Big Cable Goals on Data Collection and Consumer Targeting [Annals of Buying Access to Scholars]

Lobbyists like to hire academics in order to give their agenda the patina of scholarly respectability.  Many academics are ideologically aligned with the interests of major media and telecom companies–supporting an unregulated environment (and like to reap the bucks as well).  Some academics want to schmooze with deep-pocketed special interests.  So it’s not a surprise to learn that Time Warner Cable has a “Research Program on Digital Communications.”  They have already released a volume of papers on the “Future of Digital Communications: Policy Perspectives.”  Time Warner’s so-called research agenda is so self-serving that it would be laughable if the goal wasn’t ultimately to undermine the public interest and consumer protection.  Luckily, there are scholars and other policy experts who care more about their integrity and the academic issues and wouldn’t consider taking such funding.  Here’s what the first “research question” is for those seeking funding to ultimately help undermine consumer privacy by enabling Time Warner and other digital marketers to expand their behavioral targeting approaches:

Topic One: Advertising, Two-Sided Markets, and the Role of Network Operators (ISPs, MSOs)
The emergence of more precisely targeted (interest-based or so-called “behavioral”) advertising offers potential benefits to consumers while at the same time raising possible concerns about privacy. Application providers, network owners, advertisers, content providers, and other interested parties may play a role in allowing these potential benefits to be realized. By facilitating two-sided markets, or platforms that enable two distinct but related groups of customers (such as advertisers and consumers) to obtain value, service providers can expand the scale and scope of their offerings to consumers. Industry groups and the Federal Trade Commission have developed principles for self-regulation online, while some advocacy organizations and members of Congress have pointed to potential harm from more targeted advertising and are calling for new government mandates.
Key questions concern the types of disclosures and the level of consumer consent that should be required.
Questions
• What are the benefits of more precisely targeted advertising, and how prevalent is the practice?
• What technological innovations support the development of more targeted advertising over digital media?
• How are consumers affected by increasingly prevalent forms of targeted advertising, and what is the appro-
priate public policy response?
• What is the role for self-regulation, government intervention, and industry standard-setting?
• What role should network operators play in regulation (voluntary or prescriptive)?
• Describe the future of the advertising marketplace and the role of new and potential entrants, such as
Internet service providers (ISPs), cable operators, and other multichannel video programming distributors
(MVPDs) offering interactive television services.
• How can two-sided markets help encourage the development of new broadband and video services?
• How can regulation of advertising or privacy affect, promote, or retard the development of these new
services?

Online Advertising: “Overnight” Ratings–a la TV– Come to the Internet, inc. Mobile. Facebook Endorses Nielsen’s Cross-Platform Tracking

For years, we have explained that the Internet’s future has been tied to the TV and advertising business models of the past.  So it’s not surprising that this week comScore announced that “digital overnights” are now part of its service offerings for marketers and advertisers.  In a release, they explain that its “new service features several groundbreaking enhancements for digital media planning and optimization, including the availability of digital GRP “overnights,” campaign reporting across global markets, verification of ad delivery by audience and geography, and detailed campaign analysis by creative and placement strategy…By offering views of digital performance that have long been the standard in the TV business, any buyer should be supremely confident about allocating dollars to the platform where the most valuable attention can be found.”

Nielsen also added ratings for online programming to its product offerings, as part of the move to measure and track users across all platforms, including mobile.  As its release noted:  “marketers and media companies alike will now have a simpler way to measure the combined reach of TV, the web and even mobile advertising…Nielsen will be able to provide reach, frequency and Gross Rating Point (GRP) measures for online advertising campaigns of nearly any size, running nearly anywhere on the web.  Campaign reporting will be available within just days after the launch of a campaign, providing vital delivery information in-flight to both advertisers and publishers.”   Facebook, which is partnering with Nielsen to help expand its big brand ad selling business, enthusiastically endorsed the new product:  “More and more marketers are creating integrated, cross-platform campaigns and we need a better way to measure how they perform,” said Mike Murphy, Vice President, Global Sales, Facebook. “We think creative campaigns are more effective when marketers combine TV and digital in a way that extends the big idea online and makes it social through an ongoing, two-way connection.  With their expertise, Nielsen can help marketers measure the impact of true cross-platform campaigns.”

Google, Time Warner, Washington Post, Verizon, Canoe Ventures [Comcast] Funding Online Ad Lobby’s Campaign Against Consumer Privacy Safeguards

The Interactive Advertising Bureau (IAB) is a lobbying group that is working to oppose federal (or state) legislation and regulation that would protect consumer privacy online.  It recently led the lobbying campaign that removed from the new financial reform bill a key provision that would have enabled the FTC to better protect consumers.  What companies are helping fund the IAB’s Orwellian named “Consumer Protection and Education Campaign” battling consumer and privacy groups?  Here’s a list of the financial donors, who have ponied up about $500k so far.  Other companies are contributing free online ad space for the IAB’s campaign–1 billion impressions worth. The donors are:
AdMob
AudienceScience
Canoe Ventures
Cars.com
CPX Interactive
eBureau
Eyeblaster
Feeva Technology
Google
IDG.net
IM Services Group
Mediamath
Meredith Interactive
Microsoft
Quantcast
Sharethis
ShortTail
Simulmedia
Time Warner
Traffic Marketplace
Tumri
Verizon
Washington Post
WildTangent

Google’s interest in better bandwidth access for video and interactive ads—do negotiations with Verizon reflect recent changes for YouTube?

Google recently made an announcement that will require likely greater bandwidth for Google’s YouTube.  According to its July 9, 2010 post, “Today at the VidCon 2010 conference, we announced support for videos shot in 4K, meaning that now we support original video resolution from 360p all the way up to 4K…We’re excited about this latest step in the evolution of online video.” Also perhaps relevant to its Verizon dealmaking is Google’s move towards long-form ad supported videos on YouTube, to better position itself as a commercial video provider. If they want to ensure they are first in the `que’ with other entertainment companies, then reversing its position on network neutrality is part of their business plans.  They are ultimately in the same show biz/advertising space as everyone else is.   Btw, given that the media/telecom companies really don’t see a difference when marketing and distributing across multiple platforms, inc, mobile, it’s outrageous mobile would be exempt from network neutrality rules.  But perhaps blame it on Google’s Admob acquisition and its [and everyone else’s] plans for mobile location ad targeting!

Here’s an excerpt from today’s Ad Age article on Google’s new higher resolution and more bandwidth system for YouTube:  “YouTube recently announced support for “4k video,” meaning video files with a dimensional size up to 4096 x 2304 pixels — in other words, much larger than your computer can handle.  Online video is booming, and marketers are still trying to figure out how to create the optimal user experience and achieve the best results for their campaigns…YouTube mentions that watching videos in 4k requires an “ultra-fast high-speed broadband connection,” but this is actually the least-important requirement. While users on slower broadband connections can always wait for enough of the video to download and buffer before watching it (though why would a marketer force consumers to do that?)…

Comcast’s Pathetic “Public Interest” Commitments to Regulators for its NBCU Deal

Comcast released a memo this morning summarizing what it will promise regulators in order to win approval of its NBCU mega-deal with GE.   It’s a laughable document that demonstrates a cable monopolist mentality.  As the country’s most powerful cable and residential broadband company, they likely feel that they don’t have to really  provide a serious array of public interest commitments.   Even though the broadcasting business is in transition, and film distribution is changing, the sale of NBCU to what is arguably the dominant TV giant isn’t on its own a meaningful public interest benefit.  Indeed, the recent history of media consolidation in the U.S. is one that has actually harmed the public–through cutbacks in news and public affairs, more tabloid programming and higher cable TV rates, for example.

Comcast’s memo today [available via here] says nothing on the key (and crucial) issue of network neutrality and online programming access.  Nor are there any  safeguards for privacy and interactive ads, meaningful concrete funding commitments for local and national news,  and support for truly diverse (non-Comcast/NBCU owned) minority programming.   Today, Comcast demonstrated it’s only fit to perhaps be allowed to operate Comedy Central.

CDD Urges Regulators to Protect Consumer Privacy in Comcast/NBCU deal

The Center for Digital Democracy will ask both the FCC and FTC to ensure that consumer privacy is protected as part of the regulatory review of the Comcast/NBCU partnership.  Comcast is currently deploying interactive TV applications, including for advertising, on its cable systems.   The nation’s largest cable company and broadband ISP  has played a leading role in developing next-generation “advanced advertising” services through the Canoe Ventures interactive TV cable consortium, as well as with CableLabs (Comcast chair Brian Roberts is the chair of the board of CableLabs, the industry’s R&D center).  For advanced advertising, information on household viewing, including from individuals, will be collected from set-top boxes that can be combined with outside databases to form viewer ad targeting profiles.   Highly personal ads will be created, practically instantaneously, for real-time delivery based on these profiles. Cable and other video providers are creating a “real-time decision-making system” for marketing that analyzes user data–including income, ethnicity, and viewing and behavior patterns–to help determine the precise ad to be delivered. Comcast is reportedly planning  “a gigantic database called “TV Warehouse,” able to store a full year of statistics gathered from digital set-tops in more than 16 million households nationwide… having a massive 500 Terabytes of storage, would then feed up to a database even broader in scope operated by Canoe Ventures…”

As the nation’s biggest “video provider” and “largest residential Internet service provider,” Comcast has access to detailed financial information on its TV and broadband subscribers.  It also has a treasure trove of consumer data on viewing behaviors online and with TV.  Comcast can also use its dominate position as the leading high-speed ISP and cable TV provider to extract additional consumer information from its programming partners.   Regulators will need to ensure effective safeguards on network neutrality, programming access and competition, and consumer privacy—especially for “advanced advertising.”

CDD also will ask competition authorities to review Comcast’s relationship with Canoe Ventures, and its implications on content diversity.
Some Background:

http://www.comcastmediacenter.com/media/news-releases-detail.html?content_item_id=161;

http://www.comcastspotlight.com/sites/Default.aspx?pageid=7680&siteid=62&subnav=3

http://www.canoe-ventures.com/;

http://www.cablelabs.com/projects/dpi/;

http://www.experianmarketingservices.com/capabilities_digitaladvertising.php;

http://www.lightreading.com/document.asp?doc_id=183658&site=cdn;

http://www.multichannel.com/article/161894-Comcast_TV_Warehouse_To_Collect_STB_Clicks.php;

http://www.screenplaysmag.com/corporate/sigma/;

http://www.comcast.com/corporate/about/pressroom/corporateoverview/corporateoverview.html

Network Neutrality, a Narrowed Internet and Digital TV [Attention DoJ, FTC & FCC]

It appears that the network neutrality fight now also must be focused on how new TV sets are connected to the Internet.  A narrow, closed universe, of digital lite applications are to be part of the new high definition television universe, according to Variety.  For example, new TV’s connect to a version of the Internet but haven’t been “built for full-fledged Web browsing.”   But these sets “will come pre-installed with targeted applications for specific websites, somewhat like iPhone apps.” [our emphasis]  Some 50 million people are predicted to have these Net-lite sets by 2013.

Variety explains that:  Indeed, apps are seen as the keys to success with Web-enabled TV. There are no plans for a central app store, but analysts say they wouldn’t be surprised to see one. For now manufacturers can “push” new apps onto TVs but viewers can’t add any themselves.  This puts manufacturers in the new position of deciding which sites gain access to their customers’ screens, and there is already talk that they are contemplating selling such access via revenue-sharing deals. 

The Obama Administration has been a strong supporter of network neutrality.  It should challenge this threat to competition and new threat designed to narrow the Internet.  Beyond concerns on openness and content diversity, it’s worth noting that some in the TV industry see the deliver of Internet services via TV’s a way to expand the impact of commercials and ads (since online video ad can’t be fast-forwarded or easily skipped).  These Net-enabled devices also raise important privacy and consumer protection issues.  Notes Variety, “[T]he new technology also could add power to an advertiser’s message, with consumers able to click a link and instantly learn more about a product — and with ads being better targeted based on a person’s viewing and browsing history.”

source:  Television’s killer app: New HD TVs equipped with internet connection.  Chris Morris.  Variety. August 14, 2009.

Cable TV’s Targeted & Interactive Ads: Benefiting from a “enormous fire-hose of data”

excerpt from Advanced Advertising.  Linda Hardesty.  Cablefax.  April 1, 2009:  “There’s a lot of technology in place for data collection,” said Ross [Doug Ross, Cisco’s VP of business development in the service provider video technology group]. “We can collect almost an unimaginable amount of data at a granular level. The industry grapples with what’s the right architecture that would make this enormous fire-hose of data more useful.”

“The challenge is the enormity of that whole set of data,” agreed Woidke [Paul Woidke, SVP and general manager of advanced advertising at Open TV – and chair of SCTE Digital Video Subcommittee (DVS) Working Group 5]. “Eighty-five percent of homes in the U.S. have some kind of satellite or wired connection with a potential return path.”

Instead of just getting Nielson data for a selected sample of homes, a cable operator could gather data from all its subs and know what people watched, when they watched it, and how they behaved in terms of pausing, rewinding and fast- forwarding.

Cable’s Big Six Canoe Ventures & Privacy: “We can certainly compete with a cookie”

That quote is attributed to David Verklin, CEO of Canoe Ventures, when he spoke at a recent industry marketing event.  As noted by Inside the Marketers Studio, Mr. Verklin said that:

I think the TV can do a pretty good job at targeting. “We can certainly compete with a cookie.” Can tie it back to set top boxes, loyalty cards. 90% of grocery shopping happens with loyalty cards.