A Congressional subcommittee heard testimony from the direct marketing industry, interactive ad firms and consumer advocates last week as it considered whether to push for a bill protecting Web users from spyware or other privacy invasions online.
First introduced in 2003, the Securely Protect Yourself against Cyber Trespass (SPY Act) bill has passed the U.S. House twice but has not made it through the Senate. The bill would ban any software that takes control of a computer, modifies registry settings, logs keystrokes or collects other user data without disclosure. Adware users would have to get consent before downloading software and would impose stiff civil penalties for non-compliance.
Speaking for the Interactive Advertising Bureau, Dave Morgan, IAB Public Policy Council chairman and CEO of behavioral ad network Tacoda, said the proposed legislation could restrict consumer access to Web content and impede the growth of the online ad industry. He expressed concern about a section governing the collection of information about Web pages visited for the purpose of targeting ads. Ambiguity in the wording of this section might derail the continued expansion of the ad-supported business model on the Internet.
“There is always a risk that legislation that governs complicated technology could result in limiting and/or stifling innovation,” Morgan told the subcommittee. “We want to ensure that the availability of free content online continues to grow and that consumers receive the richest, most relevant Internet experience, without unduly burdening the advertising engine that makes these Web sites run.”
Other marketing-connected witnesses pointed out that the online ad industry has done a good job of policing itself in recent years and that a national law might not be needed.
“This legislation, while well intended, deserves a fresh look by this new Congress,” IAB president Randall Rothenberg said in testimony. “As digital media consumption grows, the industry is increasingly responsive to consumers and devoted to protecting their privacy while delivering new innovative services.”
Jerry Cerasale, senior vice president of government affairs for the Direct Marketing Association, pointed to the marketing industry’s successful self-governance on the issue of spyware.
“The combination of strong industry guidelines, anti-spyware technologies and enforcement of existing laws over the past two years has limited pernicious software downloads,” Cerasale said. He seconded Morgan’s contention that an overly broad definition of spyware could “cover things that are part of the seamless use of the Internet.”
But Ari Schwartz, deputy director for the Center for Democracy and Technology, said the bill was still needed. “Although we have seen advances in the fight against [spyware], millions of consumers are still losing money, time and peace of mind to this online scourge,” he said.
Schwartz called for broad privacy legislation to govern all businesses that collect consumer information in the course of doing business online.
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