DoubleClick settles US privacy investigation

The investigation was led by New York Attorney General Eliot Spitzer. The settlement agreement was also signed by the Attorneys General of Arizona, California, Connecticut, Massachusetts, Michigan, New Jersey, New Mexico, Vermont and Washington.

The investigation was launched in 2000, when DoubleClick announced that it intended to profile web surfers. The company used cookies to monitor the surfing and shopping habits of web users on behalf of its clients, and to assess the appeal of on-line banner ads.

Under the agreement announced yesterday by Spitzer, DoubleClick will have to adhere to privacy restrictions regarding the disclosure, storage and use of consumer data, and specifically:

• It will continue to post a privacy policy that discloses its user data practices;
• It will maintain reasonable procedures to ensure its clients comply with contract provisions regarding the disclosure of the type of information DoubleClick does or does not collect;
• It will collect and use user data only in a manner consistent with the representations DoubleClick made at the time of collection;
• Data obtained in connection with DART ad serving that are three months old will be moved off-line;
• It will not share user data collected on behalf of one of its clients with any person other than the client or as directed by that client;
• If DoubleClick employs targeting based on anonymous user profiles, the company will use reasonable efforts to develop technology that allows a user to securely view any categories associated with that user’s ad serving cookie;
• It will provide users with the ability to opt-in to an e-mail notification system that will alert the user to any changes within DoubleClick’s privacy statement; and
• It will retain an independent third-party firm to conduct three compliance reviews to verify DoubleClick’s compliance with the terms of the agreement.

DoubleClick will pay $450,000 to cover the costs of the investigation.

DoubleClick’s privacy practices were also the subject of a separate investigation by the US Federal Trade Commission which ended last year. The company also settled a class action lawsuit over the same issue.

DoubleClick said yesterday in a statement that the agreement “will not change the services that [the company] performs for its clients.” It added that the settlement “does not constitute an admission that [DoubleClick] has committed any wrongdoing.”