In a settlement reached with 10 states, DoubleClick Inc. will pay $450,000 and alter its privacy policies after an investigation into the online advertising firm’s use of consumer’s personal data.

New York Attorney General Eliot Spitzer, one of the states involved in the investigation, said in a statement that the agreement sets “a new standard for consumers’ online privacy.”

Under terms of the agreement, DoubleClick must increase disclosure of its tracking of Web users online activities, move offline data obtained in connection with its DART ad serving that is three months old, and offer Web users a better look at their own marketing profiles.

It has also agreed to 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 not share user data collected on behalf of one of its clients with any person other than that client or as directed by that client, DoubleClick said in a statement.

DoubleClick said the agreement does not constitute an admission of any wrongdoing.

DoubleClick must also retain an independent firm to review compliance of the terms of the settlement. And it is working on developing a “cookie viewer”, a tool allowing consumers to see the profiled interest categories DoubleClick uses in selecting ads for that consumer.

The 30-month investigation began after DoubleClick purchased Abacus Direct in 1999 and announced that it would combine both online and offline consumer data. It backed down on the plan in the face of public pressure.

“It’s hard for consumers to trust e-commerce when they can’t see the practices behind the promises,” Spitzer said.

Other states involved in the settlement are Arizona, California, Connecticut, Massachusetts, Michigan, New Jersey, New Mexico, Vermont and Washington.

In a settlement reached with 10 states, DoubleClick Inc. will pay $450,000 and alter its privacy policies after an investigation into the online advertising firm’s use of consumer’s personal data.

New York Attorney General Eliot Spitzer, one of the states involved in the investigation, said in a statement that the agreement sets “a new standard for consumers’ online privacy.”

Under terms of the agreement, DoubleClick must increase disclosure of its tracking of Web users online activities, move offline data obtained in connection with its DART ad serving that is three months old, and offer Web users a better look at their own marketing profiles.

It has also agreed to 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 not share user data collected on behalf of one of its clients with any person other than that client or as directed by that client, DoubleClick said in a statement.

DoubleClick said the agreement does not constitute an admission of any wrongdoing.

DoubleClick must also retain an independent firm to review compliance of the terms of the settlement. And it is working on developing a “cookie viewer”, a tool allowing consumers to see the profiled interest categories DoubleClick uses in selecting ads for that consumer.

The 30-month investigation began after DoubleClick purchased Abacus Direct in 1999 and announced that it would combine both online and offline consumer data. It backed down on the plan in the face of public pressure.

“It’s hard for consumers to trust e-commerce when they can’t see the practices behind the promises,” Spitzer said.

Other states involved in the settlement are Arizona, California, Connecticut, Massachusetts, Michigan, New Jersey, New Mexico, Vermont and Washington.