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    Washington s Privacy TangoSearching For the Elusive Consensus

    Bennet Kelley Internet Law Center

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    Founder of Internet LawCenter in Santa Monica

    Former Co-Chair of Cal. Bar

    Cyberspace CommitteeHost of Cyber Law & BusinessReport on WebmasterRadio.fm(Weds at 10-11AM PT)

    Publisher of Cyber Reportnewsletter which won topprize at 2011 LA Press Club

    Awards and named a topsource for internet law

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    +This Debate Is Not New

    OK, Not Quite That Old

    Since Advent of Internet

    What Has ChangedReach/Breach

    Acceptance of SomeRegulation

    Number of Players andTechnologies Involved

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    +The Framers and the Myth of Sisyphus

    1.2%11.4%

    67.6%

    Congress 2011

    Public LawPassedThe Rest

    Futility by Design

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    +1999: SPOTLIGHT ON ONLINE

    PROFILING1999: FTC Conference

    1999: Network AdvertisingInitiative launched to stop

    regulation2000: Report to Congress

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    Commends NAI but . . .

    [Recommends] legislation that would set forth a basic level of privacyprotection for all visitors to consumer-oriented commercial Web sites withrespect to profiling.

    Basic standards of practice governing the collection and use ofinformation online for profiling, and provide an implementing agencywith the authority to promulgate more detailed standards

    [Including] authority to grant safe harbors to self-regulatory principleswhich effectively implement the standards of fair information practicesarticulated in the legislation and subsequent rulemaking.

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    +2001-2006: Other Priorities Spam (2003) Spyware (2004)

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    + 2007-2009 Dancing OverSelf-Regulation 2007: FTC Releases Self-Regulatory

    Principles for Behavioral Targeting 2008: Industry Pushes Back 2009: Leibowitz Warns Industry Action is

    Coming Industry Responds with IAB, DMA, AAAA

    Guidelines

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    +2007 Proposed Principles

    Every website where data is collected for behavioral advertising should provide aclear, concise, consumer-friendly, and prominent statement that

    (1) data about consumers activities online is being collected at the site for use in providingadvertising about products and services tailored to individual consumers interests, and(2) consumers can choose whether or not to have their information collected for suchpurpose

    Any company that collects and/or stores consumer data for behavioral advertisingshould provide reasonable security for that data,

    Companies should retain data only as long as is necessary to fulfill a legitimatebusiness or law enforcement need.

    Before a company can use data in a manner materially different from promises thecompany made when it collected the data, it should obtain affirmative express consentfrom affected consume.

    Companies should only collect sensitive data for behavioral advertising if they obtainaffirmative express consent from the consumer to receive such advertising

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    +2008 Industry Self-Regulatory

    Principles Education Principle calls for organizations toparticipate in efforts to educate individuals andbusinesses about online behavioral advertising.

    The Transparency Principle calls for clearer andeasily accessible disclosures to consumers aboutdata collection and use practices associated withonline behavioral advertising.

    The Consumer Control Principle providesconsumers with an expanded ability to choose

    whether data is collected and used for onlinebehavioral advertising purposes. This choice willbe available through a link from the noticeprovided on the Web page where data iscollected.

    The Data Security Principle calls for organizationsto provide reasonable security for, and limitedretention of data, collected and used for onlinebehavioral advertising purposes.

    The Material Changes Principle calls onorganizations to obtain consent for any materialchange to their online behavioral advertising datacollection and use policies and practices to datacollected prior to such change.

    The Sensitive Data Principle recognizes that datacollected from children and used for onlinebehavioral advertising merits heightenedprotection, and requires parental consent forbehavioral advertising to consumers known to beunder 13 on child-directed Web sites. ThisPrinciple also provides heightened protections tocertain health and financial data when attributableto a specific individual.

    The Accountability Principle calls for developmentof programs to further advance these Principles,including programs to monitor and reportinstances of uncorrected non-compliance withthese Principles to appropriate governmentagencies.

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    + Emergence of theCreepiness Factor Is it legal? Probably. Do I think it's a good ideaand it makes sense? No. I don't think it passes the creepy factor, and this market isn't ready

    for stuff that doesn't pass the creepy factor,

    We are not in a place where we an do dumbthings and stupid things like that, even if they're effective. Dave Morgan - TacodaFounder

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    + 2009-2011: Lawyers of theRoundtable Tenth Anniversary of Online Profiling

    Conference Industry Still Fighting Regulation Complexity Increases . . . Oh and there s that Social Networking

    thing too.

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    + Personal Data Eco-System Any questions????

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    +FTC Privacy Report

    Our report and law enforcementaction send a clear message toindustry: despite some good actors,self-regulation of privacy has notworked adequately and is notworking adequately for Americansconsumers . We deserve far betterfrom the companies we entrust ourdata to, and industry, as a whole,must do better.

    FTC Chairman Jon Leibowitz

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    +DOC Privacy Report

    Endorses baseline commercial dataprivacy principles that would fill anygaps in existing U.S. law;

    Safe harbors against FTCenforcement for practices definedby baseline data privacy or self-regulatory codes;

    Limited rulemaking authority overcertain baseline fair information

    privacy practices principles if it isestablished that market failuresrequire prescriptive regulatoryaction; and

    National Data Breach Standards

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    +Market Reaction

    Browser Wars

    Privacy Competition

    Industry Begins PolicingItself

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    +Meanwhile . . .

    No Consensus

    Other Internet Battles

    Net Neutrality

    SOPA

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    +Consumer PrivacyBill of Rights

    Individual Control:

    Transparency

    Respect for Context:

    Security:

    Access and Accuracy:

    Focused Collection: and

    Accountability

    Enforcement by FTC

    Safe Harbors for ApprovedCodes of Conduct

    Federal Data Breach Law

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    +Half Empty Relies on agreed upon self-regulatory

    principles and passage of comprehensiveprivacy legislation neither of which is

    on the horizon. Little different that where we were in 1999

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    +Half Full Jump starts moribund legislative process Got industry backing of do-not track on

    browser level Industry is engaging in self-regulation

    and enforcement already Substantial movement in industry s

    approach since 1999

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    + Internet Law Center100 Wilshire Blvd., Suite 950, Santa Monica, CA 90401(310) [email protected]

    www.internetlawcenter.net

    mailto:[email protected]://www.internetlawcenter.net/http://www.internetlawcenter.net/mailto:[email protected]
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    +Links

    1999 Workshop on OnlineProfiling

    2000 Report to Congress on

    Online Profiling

    2007 Self RegulatoryPrinciples (staff report)

    2008 Industry Self Regulatory

    Principles

    2010 FTC Staff Report

    2010 Department of Commerce Green Paper

    2011 CyLaw Report Why

    Johnny Cant Opt Out

    2012 Consumer Privacy Bill of Rights Proposal

    2012 White House Summary of

    Privacy Proposal

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