In December, the Federal Trade Commission (FTC) released a 79-page report [PDF] outlining a Do Not Track initiative designed to help Internet users better protect their privacy. On Friday, Feb. 11, the “Do Not Track Me Online” bill was introduced in Congress.
According to New York Times journalists Edward Wyatt and Tanzina Vega, “Many of the problems the FTC is trying to tackle involve third parties that use technology to surreptitiously follow a user around the web, collecting data and then selling it, usually without the user’s knowledge.”
The Do Not Track report introduced in December recommends allowing web surfers to opt out of online tracking by activating a web-browser control that blocks third-party cookies. Firefox (Mozilla), Chrome (Google) and Internet Explorer (Microsoft) have all announced plans to integrate this type of feature into their next browser versions.
Do Not Track will have a negative impact on many advertisers who rely on an individual’s web history to show more targeted ads. These are known as contextual and behavioral ads, and according to Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers, made up about $12.1 billion in ad spend in the first half of 2010.
Mike Zaneis, senior vice president and general counsel of the IAB, says the online advertising industry would suffer “significant economic harm” if the government controlled the do-not-track mechanism and there was “a high participation rate similar to that of do not call.” (source: New York Times)
What does the bill mean for consumers and marketers?
If it is correctly constructed, Do Not Track could be a positive force for the consumer and the industry. The correct scope is to weed out people who are selling personal information or using such tracking for illegal purposes.
However, blocking all third-party cookies is not the correct solution. More so than advertising, the biggest uses of third-party cookies are in the website analytics space where companies place code from providers such as Google Analytics on their websites to measure and improve visitor interaction. Making sure to protect such uses is essential to improving consumer experience.
Many companies rely on the information from web tracking to improve their customer experience, so it is important to protect that feedback loop from specious legislation.

