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Tracking, Targeting, & Technology
Behavioral Advertising
FTC Staff Report:
February 2009 
Self-Regulatory PrinciplesFor Online Behavioral Advertising
 
TABLE OF CONTENTS
EXECUTIVE SUMMARY.......................................................iI.INTRODUCTION........................................................1II.BACKGROUND.........................................................2A.What Is Online Behavioral Advertising?.................................2B.The FTC’s Examination of Online Behavioral Advertising..................41.Online Profiling Workshop.....................................62.Tech-ade Hearings and the Ehavioral Advertising Town Hall..........8C.Staff’s Proposed Self-Regulatory Principles.............................11D.Recent Initiatives to Address Privacy Concerns..........................12III.SUMMARY OF THE COMMENTS RECEIVED AND STAFF’S ANALYSIS.......18A.The Principles’ Scope..............................................201.Applicability to Non-PII......................................202.Applicability to “First Party” Online Behavioral Advertising..........263.Applicability to Contextual Advertising..........................29B.Transparency and Consumer Control...................................301.Choice for Non-PII...........................................312.Providing Effective Notice and Choice...........................33C.Reasonable Security and Limited Data Retention for Consumer Data.........37D.Affirmative Express Consent for Material Retroactive Changes to PrivacyPromises.........................................................39E.Affirmative Express Consent to (or Prohibition Against) Use of SensitiveData ............................................................42F.Secondary Uses....................................................44IV.REVISED PRINCIPLES..................................................45A.Definition........................................................46B.Principles........................................................461.Transparency and Consumer Control.............................462.Reasonable Security, and Limited Data Retention, for Consumer Data......................................................463.Affirmative Express Consent for Material Changes to Existing PrivacyPromises...................................................474.Affirmative Express Consent to (or Prohibition Against) Using SensitiveData for Behavioral Advertising................................47V.CONCLUSION.........................................................47
 
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FTC STAFF REPORT:SELF-REGULATORY PRINCIPLES FOR ONLINE BEHAVIORAL ADVERTISINGEXECUTIVE SUMMARY
Since the emergence of “e-commerce” in the mid-1990s, the online marketplace hascontinued to expand and evolve, creating new business models that allow greater interactivity between consumers and online companies. This expanding marketplace has provided many benefits to consumers, including free access to rich sources of information and the convenienceof shopping for goods and services from home. At the same time, the ease with whichcompanies can collect and combine information from consumers online has raised questions andconcerns about consumer privacy.Starting in 1995, the Federal Trade Commission (“FTC” or “Commission”) has sought tounderstand the online marketplace and the privacy issues it raises for consumers. TheCommission has hosted numerous public workshops and has issued public reports focusing ononline data collection practices, industry self-regulatory efforts, and technological developmentsaffecting consumer privacy. As part of this effort, the Commission has examined online behavioral advertising – the practice of tracking an individual’s online activities in order todeliver advertising tailored to the individual’s interests. In November 2007, the FTC held a two-day “Town Hall,” which brought together numerous interested parties to discuss online behavioral advertising in a public forum.Participants at the Town Hall discussed the potential benefits of the practice toconsumers, including the free online content that online advertising generally supports, the personalized advertising that many consumers may value, and a potential reduction in unwantedadvertising. They also discussed the privacy concerns that the practice raises, including the
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