The
Federal Trade Commission had some sharp words for Internet companies Thursday,
saying that they are not explaining to their users clearly enough what
information they collect about them and how they use it for advertising. For
now, the commission is sticking to its view that the Internet industry can
voluntarily regulate its own privacy practices. But the tone of the report, and
comments by several commission members and staff officials, indicated that if
the industry does not move faster, the agency would increase regulation or call
for Congress to legislate stricter online privacy rules. Technically, the
commission released an update to its principles for what it calls online
behavioral advertising — ads shown to the user based on past patterns of behavior.
These are voluntary guidelines first issued at the end of 2007. The new
guidelines suggest that Web sites explain how they collect and use data in a “clear,
concise, consumer friendly, and prominent” way. Few sites meet that standard
right now, the commission found. Click for the full
story from the New York Times.

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