How Would a Do-Not-Track Bill Affect Small Business?

By Karen Axelton

Lawmakers are pondering legislation that would require a “do-not-track” function in Web browsers that would let consumers opt out of having their data collected by Internet companies. The idea is based on the success of the do-not-call registry, which enables consumers to block unwanted calls from telemarketers. Demand for the do-not-block option has been growing, The Los Angeles Times reports. What would such a move mean for small businesses?

Online advertisers and other Internet businesses use data collected online to serve targeted ads to consumers and otherwise market to them. But the idea that data about their every move is being collected makes many consumers uneasy.

In late November, the Federal Trade Commission endorsed the concept of a do-not-track function; however, the organization is calling for it to be voluntary. The Obama administration has supported stronger protection for consumer privacy online, but only on a voluntary basis, and hasn’t come out in favor of a do-not-track function.

Rep. Bobby Rush (D-Ill.), chairman of the House Subcommittee on Commerce, Trade and Consumer Protection, will introduce online privacy legislation next year that may include a do-not-track requirement. Rep. Edward J. Markey (D-Mass.) next year will introduce legislation regarding children’s online privacy that will include a do-not-track requirement.

To forestall the introduction of a mandatory do-not-track function, Internet companies are launching an industry-wide initiative that would enable people to opt out of targeted ads, giving them more privacy protection.

One major concern that legislators are taking into account is the harmful effect a do-not-track regulation would have on Internet advertising at a time when the economy is still in a fragile state. Joan Gillman, president of media sales for Time Warner Cable, told legislators in a hearing that advertisements are one reason most Internet content is free.

So far, the Internet has largely escaped attempts to regulate and tax it. Will it continue to do so? Only time will tell. In the meantime, you need to be aware that collecting private data is a sensitive issue. Make sure you’re using your customer data in ways that they’re comfortable with.

This entry was posted on Tuesday, December 14th, 2010 at 10:30 am and is filed under Marketing. You can follow any responses to this entry through the RSS 2.0 feed.


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