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Out-Law News 1 min. read

Ad networks offer opt-out tool to protect privacy


The US-based Network Advertising Initiative (NAI) this week launched an on-line service which provides consumers with the ability to opt-out of ads from major companies including DoubleClick and 24/7 Media to improve its self-regulatory approach to addressing consumer's privacy concerns.

The site, networkadvertising.org, also gives information about on-line advertising practices. Compliance with the opt-out service will be managed by accountants Arthur Andersen, which will allow users to make complaints about failures to comply with the NAI Principles.

The NAI member companies - Adforce, Avenue A, DoubleClick, Engage, L90, MatchLogic, and 24/7 Media – are together giving consumers the choice to "opt-out" of the online preference marketing practices by each and every NAI ad network. They worked for over a year with the Federal Trade Commission to develop this self-regulatory program and its privacy principles.

Internet users may find that, without knowing it, they already have cookies in their computers from each of the seven member companies of the NAI. The cookies are used mostly to store information about surfing preferences. The new site lets users check which cookies they have, delete them and replace them with a cookie that blocks new cookies being added by these companies.

The NAI said its program is being implemented to give consumers greater control over their privacy preferences, as well as to ensure that the member companies of the NAI protect consumer privacy and comply with its Self-Regulatory Principles for Online Preference Marketing.

The program will include regular audits by independent auditors for compliance with the NAI principles, investigations of alleged failures, the potential for sanctions, and notice of failure to comply with the NAI principles to the FTC.

However, critics point out that most internet users are unaware that ad companies are already profiling them and that the invisibility of the companies means an opt-out is insufficient. Many privacy advocates have called for an opt-in policy which would forbid profiling unless the internet user first agreed to it.

To check which ad networks have cookies in your computer, see www.networkadvertising.org/optout_nonpii_verify.asp

To opt-out, see www.networkadvertising.org/optout_nonppii.asp

To complain about non-compliance, see www.andersencompliance.com

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