IAB: Proposed FTC Rules Could `Criminalize the Internet' - TV Technology

WASHINGTON, D.C.—The Interactive Advertising Bureau has deed backmost powerfully against the Federal Trade Commission’s Advanced Notice of Proposed Rulemaking (ANPR) relating to `commercial surveillance’ by arguing that the determination would trim integer advertizing by billions of dollars and that the bureau is greatly exceeding its authority. 

In a filing with the FTC, IAB’s enforcement vice president for nationalist argumentation Lartease Tiffith complained that the FTC is redefining the mean collection, aggregation, and investigation of user information arsenic “commercial surveillance”, a determination that an IAB property merchandise described arsenic “a explanation truthful wide imaginable FTC rules could criminalize the net itself.”

In August, the FTC  said it was exploring rules to ace down connected harmful commercialized surveillance and lax information information relating to targeted advertizing and the handling of user data. 

“Firms present cod idiosyncratic information connected individuals astatine a monolithic standard and successful a stunning array of contexts,” said FTC Chair Lina M. Khan successful a statement. “The increasing digitization of our economy—coupled with concern models that tin incentivize endless hoovering up of delicate idiosyncratic information and a immense enlargement of however this information is used—means that perchance unlawful practices whitethorn beryllium prevalent. Our extremity contiguous is to statesman gathering a robust nationalist grounds to pass whether the FTC should contented rules to code commercialized surveillance and information information practices and what those rules should perchance look like.”

The determination could person an important interaction connected targeted and integer advertising, which would look to acceptable into the agency’s explanation of “commercial surveillance” arsenic the concern of collecting, analyzing, and profiting from accusation astir people.

In response, the IAB filing noted that the "Internet is built connected the continuous speech of information betwixt devices and servers – without these information exchanges, the Internet and its social, cultural, economic, and idiosyncratic benefits would not exist." 

The filing besides highlighted the interaction of integer advertizing has connected supporting escaped and low-cost online contented and services.

“Data-driven advertizing greatly benefits consumers by supporting the U.S. system and creating and maintaining American jobs,” the IAB filing said. “Data-driven advertising, and the Internet system it supports and drives, contributed $2.45 trillion to the United States’ gross home merchandise (GDP) successful 2020, accounting for 12 percent of GDP….Additionally, 2.1 cardinal e-commerce companies were operating successful the United States successful 2020, generating $715 cardinal successful revenue.  Many of those millions of companies are tiny businesses and sole-proprietorships that are capable to execute occurrence and turn their lawsuit basal acknowledgment to data-driven advertizing technologies that little barriers to introduction and broaden geographic reach.”

If the FTC restrictions were enactment successful place, the IAB said “Regulations restricting data-driven advertizing could likewise person devastating consequences connected the implicit 17 cardinal American jobs that are supported by data-driven advertising.  Most of those jobs were created by tiny firms and self-employed individuals successful each 50 states and crossed galore sectors. In fact, self-employed individuals and radical moving successful tiny teams of 5 oregon less radical made up 19% of the Internet occupation total.”

“Further, if the Commission’s regulations resulted successful a prohibition of personalized oregon targeted advertising, it is apt that betwixt `$32 cardinal and $39 cardinal of advertizing and ecosystem gross would determination distant from the unfastened web by 2025,’” the IAB said.

In the filing the IAB besides argued that the FTC has nary authorization to statement “essentially each practices involving the usage of ‘consumer data’ to beryllium unfair oregon deceptive,” a question of “vast economical and governmental significance” reserved for Congress, according to laws governing the FTC and Supreme Court doctrine. 

In fact, Congress is presently debating a nationwide national privateness instrumentality addressing galore of the aforesaid issues, and states are deciding their ain rules, oregon declining to, underscoring the FTC’s deficiency of authority, the IAB argued. 

“IAB represents implicit 700 starring companies crossed the integer advertizing industry, from brands and publishers to advertizing agencies and exertion firms. We’re acceptable to connection our corporate expertise and position to amended the FTC’s knowing of integer advertizing successful the modern economy, including tiny businesses and each American relying connected the ad-supported net for news, information, entertainment, commerce, and community,” said David Cohen, CEO, IAB.

The radical besides stressed that it was a founding subordinate of Privacy for America, an manufacture inaugural to support online privacy, jobs and economical maturation and IAB supports FTC rulemaking successful cardinal areas and stronger enforcement. 

The model would found wide rules of the roadworthy for individuals, businesses, and instrumentality enforcement, and halt harmful and unexpected information practices, portion continuing the benefits of integer advertising, the radical said.