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FTC AND CLINTON ADMINISTRATION ANNOUNCE SUPPORT FOR INDUSTRY SELF-REGULATION PRINCIPLES

Source: Network Advertising Initiative

Posted on July 28, 2000

      The Federal Trade Commission (FTC) and the Clinton Administration announced on July 27, 2000 their overwhelming support for the Network Advertising Initiative's (NAI) Self-Regulatory Principles for Online Preference Marketing (OPM). Online Preference Marketing is the ability to target consumers based on their preferences and behavior, thereby increasing the relevance of content and advertising and improving the overall Internet experience for the consumer. The agreement comes after a year of negotiations between the network advertisers and the federal government.

      "We're delighted that we could come to such a terrific agreement with the strong support of the FTC and the Clinton Administration," said Jeff Connaughton of Quinn Gillespie & Associates and NAI spokesperson. "These principles represent an enforceable self-regulatory approach that addresses consumer concerns about information collection while balancing the many technologies and benefits of e-commerce."

      Under the agreement, NAI companies agree that they will:

  • Not use personally identifiable information about sensitive medical or financial data, information of a sexual nature or Social Security numbers for OPM.
  • Mandate clear and conspicuous notice and choice on sites that collect Non-Personally Identifiable Information ("Non-PII") for the purpose of OPM.
  • Mandate an opt-in for the merger of Personally Identifiable Information ("PII") with previously collected Non-PII.

      Mandate robust notice and choice before the collection of PII that will be merged with Non-PII collected on a going forward basis."Internet advertising is critical to the long-term viability of the Web. Effective advertising is an integral component of economic support for many web sites today. From sports scores to stock quotes to the latest political news, most content on the Internet is available to users without charge because of effective Internet advertising. We believe that these principles allow for the continued effectiveness of Internet advertising while safeguarding user privacy," said Connaughton. NAI has also committed to working with a yet-to-be-determined third party to monitor compliance with the program.

      NAI represents over 90 percent of on-line advertising companies that engage in OPM and include the following companies: 24/7 Media, AdForce, AdKnowledge, Avenue A, Burst! Media, DoubleClick, Engage, L90, MatchLogic.




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