DoubleClick Changes Data Collection Plans

(March 6, 2000) DoubleClick CEO Kevin O'Connor stated on March 2 that for now his company will not link personally identifiable information to anonymous user activity across web sites. Last month EPIC and other groups complained to the Federal Trade Commission about DoubleClick's privacy practices.

On February 10 the Electronic Privacy Information Center filed a complaint with the Federal Trade Commission alleging that online ad company DoubleClick, which recently merged with catalog database firm Abacus, will combine anonymous Internet profiles in the DoubleClick database with the personal information contained in the Abacus database.

EPIC further alleged that this would violate earlier privacy policies which stated that DoubleClick does not maintain personally identifiable information; and this, in turn, would constitute an unfair and deceptive trade practice within the meaning of the Federal Trade Commission Act.

Kevin O'Connor wrote in his public statement that "I made a mistake by planning to merge names with anonymous user activity across Web sites in the absence of government and industry privacy standards."

"Let me be clear: DoubleClick has not implemented this plan, and has never associated names, or any other personally identifiable information, with anonymous user activity across Web sites," he continued. "We commit today, that until there is agreement between government and industry on privacy standards, we will not link personally identifiable information to anonymous user activity across Web sites."

DoubleClick is company specializing in online advertising and marketing. It states in its web site that "We specialize in developing the solutions which make advertising work on the Internet for Web publishers and Web advertisers." The EPIC complaint focused on its "DART" technology, an acronym for "Dynamic Advertising Reporting and Targeting." This involves the use of "cookies" to keep track of the web use of individual browsers which visit web sites with DoubleClick managed ads.

O'Connor added that "We will also continue to abide by common industry practices in building anonymous profiles for ad targeting."

This matter prompted Information Technology Association of America President Harris Miller to write a letter to government leaders on March 3 in defense of Internet advertising. He wrote that "a concern about the business practices of a few firms threatens to upset the democratic model on which the entire Internet is based."

Harris continued that "I am especially distressed that the Department of Commerce may be joining with the Federal Trade Commission in offering proposals for far reaching regulation of Internet advertising.  Such regulation could significantly undermine the ability of providers to offer free content and access by encouraging many websites to offer only subscription content and access.  While sensitive to the need to safeguard individual privacy on the ‘net, we also believe that upsetting the Internet business model could have a variety of significantly negative unintended consequences."

The letter was addressed to Secretary of Commerce William Daley, but copied to the Federal Trade Commission, and others.

Shortly after he sent the letter to Secretary Daley, Harris Miller made the following additional statement. "I am pleased to report that senior Department of Commerce officials assured me this afternoon that the Department remains committed to a policy of industry self regulation of the Internet, and that we had been misinformed that DOC is involved with any efforts to propose federal regulation. ITAA fully supports the Commerce Department and appreciates the efforts of Secretary Daley and his colleagues to continue the robust growth of the Internet and the New Economy."