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71102Wor.Pdf (525.29 1 1 FEDERAL TRADE COMMISSION 2 3 4 EHAVIORAL ADVERTISING 5 TRACKING, TARGETING & TECHNOLOGY 6 7 8 9 10 11 Friday, November 2, 2007 12 9:00 a.m. to 5:11 p.m. 13 14 15 16 United States Federal Trade Commission 17 Conference Center 18 601 New Jersey Avenue, N.W. 19 Washington, D.C. 20 21 22 23 24 25 Reported by: Linda D. Metcalf For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 2 1 TABLE OF CONTENTS 2 Page 3 Welcome and Introductory Remarks 4 Joel Winston, Associate Director, BCP............3 5 6 Disclosure to Consumers...............................9 7 8 YouTube Contest Presentation..........................95 9 10 The Regulatory and Self-Regulatory Landscape..........133 11 12 Roundtable on the Future of Behavioral Advertising....203 13 14 15 16 17 18 19 20 21 22 23 24 25 For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 3 1 P R O C E E D I N G S 2 - - - - - 3 WELCOME AND INTRODUCTORY REMARKS 4 MS. BRANDENBURG: Good morning. If you all 5 could take your seats, we'll go ahead and get started. I 6 would like to welcome you back to day two of the 7 Ehavioral Advertising Town Hall. Just a few reminders 8 before we begin. When it's time for audience questions, 9 we have two microphones set up in the aisles, and the 10 moderators will indicate that it's the time for audience 11 questions and you can come up, and, again, please be 12 mindful of time so that everybody has an opportunity to 13 ask their questions. If you would like to submit 14 comments for the record, you may do so up until November 15 16th on the FTC website, www.ftc.gov. 16 We have a number of important housekeeping 17 reminders. Security, if you leave the building at any 18 time for lunch or to take a break, you'll need to be 19 rescreened when you come back into the building. Please 20 wear your name tags at all times, and if you should see 21 anything suspicious, please, of course, report it to the 22 guards. 23 Please turn off or set to vibrate your cell 24 phones. You may use your cell phones outside of the 25 conference center, but please refrain from using them For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 4 1 even in the foyer behind us. Fire exits are located 2 through the main doors at the front of the building on 3 New Jersey Avenue and through the pantry area to the G 4 Street corridor and out to G Street, which is directly 5 behind us. In the event of an emergency or drill, 6 proceed diagonally -- to the building diagonally across 7 Massachusetts Avenue. 8 Finally, I would like to thank Microsoft for 9 providing the coffee and bagels this morning. And now 10 without further delay, let me introduce Joel Winston, the 11 Associate Director for the Division of Privacy and 12 Identity Protection. 13 (Applause) 14 MR. WINSTON: Thank you, good morning to 15 everybody. I guess if the measure of a success of an 16 event like this is how many people show up the second 17 day, so this is great, nice crowd. And the real test 18 will be how many of you stay until the end, so we may be 19 locking the doors at some point just to make sure we have 20 a good crowd. 21 What I would like to do just in a few minutes 22 is kind of lay the groundwork for today's session, and I 23 think we got off to a great start yesterday. And it 24 really laid the ground work for what we're going to talk 25 about today. What we learned yesterday was what For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 5 1 behavioral marketing is, and of course we're going to 2 have our YouTube presentation later that will further 3 explore that. 4 We learned about who is using behavioral 5 marketing, how it works, what information companies 6 collect, how they use that information. So I think we 7 all have a better idea now what we're talking about. 8 We also heard about the benefits of behavioral 9 marketing, the fact that it enables consumers to get 10 content on the Internet for free. And the fact that it 11 delivers ads that are more relevant to people, less ad 12 clutter, and of course there's certain business 13 efficiencies that come from this practice. 14 At the same time we also heard about some of 15 the concerns that have been raised, the privacy concerns. 16 We heard about the lack of control that some consumers 17 may feel over their information. We heard about concerns 18 about the collection of sensitive information, medical 19 information and other sensitive information, how that 20 might be used. 21 We heard about anonymity, the issue of 22 anonymity. And there was a good discussion of what 23 anonymous means in this space, for example, is an IP 24 address anonymous or not, the debate on that. We heard 25 about some concerns about possible discrimination, that For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 6 1 targeted information could be used in some way to 2 discriminate against a vulnerable group such as children 3 and others, and also the overreaching of these vulnerable 4 groups. And, in particular, we heard about the social 5 networking sites and concerns about how information 6 collected through those sites could be used to target 7 teens. 8 We also heard about the possibility of data 9 breaches, that these compilations of information exist 10 and if they're not adequately secured there could be 11 significant harm to consumers. Interestingly, at least 12 what I heard yesterday was that consumers seem to be less 13 concerned about the advertising they're getting as a 14 result of behavioral targeting and more about the fact 15 that the information is being collected and stored. 16 So that may give us some ideas for how to 17 approach this problem in the future. So as is so often 18 the case in the law and in policy, the challenge is to 19 find the right balance. How do we preserve the benefits 20 that behavioral targeting brings to consumers and to 21 industry while protecting consumers from some of the 22 possible privacy concerns or abuses that might arise. 23 And if you don't mind me giving a shameless 24 plug for an upcoming workshop that we will be having in 25 December on the use of Social Security numbers in the For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 7 1 private sector, it presents really the same kind of 2 balancing test. Social Security numbers that are 3 collected have a lot of beneficial purposes for industry, 4 for government, for consumers. They allow the matching 5 of information and fraud prevention and lots of other 6 good uses. 7 At the same time, there's a potential for 8 abuse, there's a potential for identity theft. So, 9 again, the trick is finding the right balance. And 10 that's what we're going to focus on today. Today we're 11 going to talk about solutions in the future. We're going 12 to talk first about disclosures. Can they be made more 13 effective? Can consumers be empowered to control their 14 own information or do disclosures simply not work in this 15 space? Is this information that consumers simply can't 16 absorb, don't have the time or the will to really look at 17 and understand. And then of course the YouTube 18 presentation will be a good example of how to communicate 19 information, so I think that will be a lot of fun. We're 20 also going to talk about the regulatory environment and 21 what exists now, what self-regulation might be 22 appropriate here, what sort of government actions might 23 be appropriate. 24 And then finally we're going to close with a 25 roundtable on the future, where is this going and what For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 8 1 can we do to shape the future? And hopefully we won't be 2 hearing anything more about Larry Ponemon's mother. 3 That's sort of my goal for today. 4 Anyway, I think it will be a terrific session. 5 And hope you all stay and participate. Remember, this is 6 a town hall, we want everybody to get involved. Thanks. 7 (Applause) 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 For The Record, Inc. (301) 870-8025 - www.ftrinc.net - (800) 921-5555 9 1 SESSION 6: DISCLOSURES TO CONSUMERS 2 MS. ENGLE: Good morning, I'm Mary Engle, the 3 Associate Director for Advertising Practices at the FTC. 4 At this morning’s session, we're first going to hear 5 three presentations, and then we'll have a roundtable 6 along the lines of the last panel yesterday. First this 7 morning we're going to hear from Lorrie Cranor, who is an 8 Associate Research Professor at Carnegie Mellon, then 9 we’ll hear from Declan McCullagh with CNET, and finally 10 Scott Shipman from eBay.
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