IAB Rallies Against FTC Regulations That ‘could Criminalize The Internet Itself’ - The Drum

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By John McCarthy | Media editor

November 15, 2022 | 5 min read

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The advertizing commercialized assemblage says the US government’s user extortion bureau has nary authorization to marque each practices involving consumer data arsenic “unfair oregon deceptive.”

Potential authorities includes galore definitions of online advertizing that the IAB vehemently disagrees with

In a missive addressed to the Federal Trade Commission (FTC), the Interactive Advertising Bureau (IAB) – a commercialized assemblage that represents much than 700 companies –has condemned imaginable legislation, touted successful an Advanced Notice of Proposed Rulemaking (ANPR), that it says would severely restrict the usage of user information for sectors including integer advertising.

The ANPR papers includes galore definitions of online advertizing that the IAB vehemently disagrees with, specified arsenic the enactment “the prevalence of commercialized surveillance and information information practices that harm consumers.”

Lartease Tiffith, the IAB’s enforcement vice-president for nationalist policy, has accused the committee of “claiming wide regulatory authority, which bipartisan lawmakers person repeatedly denied,” and said that it is “redefining the mean collection, aggregation, and investigation of user information arsenic ‘commercial surveillance’ – a explanation truthful wide imaginable FTC rules could criminalize the net itself.”

Tiffith added: “The net is built connected the continuous speech of information betwixt devices and servers – without these information exchanges, the net and its social, cultural, economic, and idiosyncratic benefits would not exist.”

The FTC puts caller information privateness plans successful motion: the media and advertizing manufacture reacts

Tiffith cited probe from the Digital Advertising Alliance (DAA) and the Massachusetts Institute of Technology (MIT) that claims 8 of the apical 10 websites successful the United States are mostly escaped owed to integer advertising. Whether these websites could proceed to efficaciously advertise without the wide gathering of information volition beryllium the question connected critics’ minds.

Tiffifth besides warned that tiny publishers would beryllium particularly “hard-hit” by the proposals. “All Americans would carnivore the brunt of a prohibition connected information for e-commerce and different communal online activities the FTC describes arsenic ‘commercial surveillance’ successful its notice, a prelude to authoritative rulemaking.”

The IAB is arguing that the FTC has “no authority” to marque “essentially all practices involving the usage of ‘consumer data’ to beryllium unfair oregon deceptive.” It besides accuses the FTC of not pursuing its ain rulemaking process by “failing to supply tenable alternatives arsenic required by law; avoiding work by requiring the nationalist to bash truthful without wide guidance; and creating uncertainty with vague definitions.”

It noted that determination has been an “abrupt” people alteration nether its caller leadership. As the fallout continues, the destiny of personalized advertizing hangs successful the balance. The American Advertising Federation spoke retired against the measure earlier this year.

The tide of privateness regularisation is incoming globally – successful Europe, the IAB is navigating EU committee accusations that its framework, which is utilized by 80% of Europe’s websites to way web users, isn’t legally water-tight nether existing rules.

For much connected however the satellite of data-driven advertizing and selling is evolving, check retired our latest Deep Dive.