[privacy] Groups Urge Web Tracking Inquiry

["Richard M. Smith" <rms () computerbytesman com>]

http://online.wsj.com/article/SB116235060894009808.html?mod=technology_main_
whats_news
 

Groups Urge Web Tracking Inquiry

FTC Is Asked to Examine
Technologies of Microsoft,
Others Over Privacy Issues
By CHRISTOPHER CONKEY and ROBERT A. GUTH 
November 1, 2006; Page B2


Two advocacy groups today are expected to urge federal regulators to examine
technologies used by Microsoft
<http://online.wsj.com/quotes/main.html?type=djn&symbol=MSFT>  Corp. and
other online companies for possible violations of consumer privacy.

In a complaint being filed with the Federal Trade Commission, the Center for
Digital Democracy and the U.S. Public Interest Research Group will ask FTC
Chairman Deborah Platt Majoras to investigate how Microsoft and other online
companies track consumers' Internet activity and handle the information they
gather.

"The FTC should long ago have sounded a very public alarm," the complaint
reads, "concerning the data collection practices stemming from such fields
as Web analytics, online advertising networks, behavioral targeting and
[virtual reality media], all of which threaten the privacy of the U.S.
public."

While the filing highlighted Microsoft, the software giant is a recent entry
in an area led by Google
<http://online.wsj.com/quotes/main.html?type=djn&symbol=goog>  Inc. and
Yahoo <http://online.wsj.com/quotes/main.html?type=djn&symbol=yhoo>  Inc.,
which garner the majority of their revenue from online advertising.

The vast amount of private information collected by Internet companies was
spotlighted last year when the Justice Department demanded that Google,
Microsoft, Yahoo and Time
<http://online.wsj.com/quotes/main.html?type=djn&symbol=twx> Warner Inc.'s
AOL unit supply information about consumers' Web searches as part of a probe
into how to protect children from online pornography. Google fought the
department's action, arguing, in part, that it would jeopardize its users'
private information. Ultimately a judge forced Google to hand over a portion
of the information.

Jeffrey Chester, the Center for Digital Democracy's executive director, said
he is primarily concerned that consumers are ill-informed about how closely
they are monitored when they surf the Web. Mr. Chester, whose complaints to
the FTC 10 years ago helped shape the agency's view on how personally
identifiable information of children can be acquired online, said he would
like the FTC to push for legislation that would lead to better disclosures
about data-sharing practices and force companies to ask consumers if they
are willing to allow their Web activity to be shared with affiliates or
marketers.

"They have got it all wrong," said Mike Hintze, a senior attorney at
Microsoft. "We would be happy to brief the Center for Digital Democracy and
others about how adCenter works." Microsoft, he said, is "committed to
protecting consumers' privacy, and we are very open with consumers about our
privacy policies and practices across all of our online services and all of
our advertising products."

Yahoo and Google, which were included in the complaint, and others echoed
those sentiments.

Brent Hieggelke, chief marketing officer of Touch Clarity, a London-based
online-marketing firm also named in the filing, said online tracking
technologies don't acquire names, addresses or other personally identifiable
information of consumers. Instead, they rely on "anonymous" cookies that
track Web-site visits that make the interactive experience more efficient
for consumers and businesses.

The filing comes as Microsoft, Redmond, Wash., is building out its online
advertising system, called adCenter. Opened for broad use earlier this year,
the system connects advertisers to results on Microsoft's Internet search
service. An FTC representative wouldn't comment on the filing except to say
it would be reviewed.

Write to Christopher Conkey at christopher.conkey () wsj com and Robert A. Guth
at rob.guth () wsj com

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