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Marketing, Ad Groups Hit FCC Privacy Draft's Proposed Shift to Opt-In Consent

Marketing and advertising groups criticized an FCC broadband privacy draft order circulated by Chairman Tom Wheeler and tentatively set for an Oct. 27 vote (see 1610060031). They have "deep concern regarding a proposed last-minute change to privacy rules for Broadband…

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Internet Access Services ('BIAS'), which would significantly harm online commerce," said a Monday letter from the American Association of Advertising Agencies, American Advertising Federation, Association of National Advertisers, Direct Marketing Association (DMA), Interactive Advertising Bureau, and Network Advertising Initiative filed in docket 16-106. A Wheeler "fact sheet" said the FCC would "require opt-in consent to use and share 'sensitive data,' a term that the Commission would expand to include web browsing and application use history when linked to a device alone," the groups said. "This proposal would upend the established and thriving Internet economy, which relies on the support of data-driven advertising." They said the FCC summary offered no explanation for departing from "the accepted industry practice and customer expectation" that Internet data collection and use for ads are "subject to an opt-out choice." The opt-out approach "has helped fuel the successful commercial Internet, made the U.S. the global Internet leader, and continues to deliver extraordinary products and services to consumers. We believe that mandating an opt-in requirement in these areas would seriously inhibit the ability of BIAS to succeed in the developing marketplace," they wrote. “The success of the digital economy is not an accident; it is the product of a proven policy framework based on notice and choice and enforced by industry self-regulation,” said Emmett O’Keefe, DMA senior vice president-advocacy, in a release. “This framework has done an excellent job protecting consumers’ privacy choices while fostering innovation that has resulted in great benefits for consumers and the U.S. economy. As drafted, the proposed rulemaking would unnecessarily put those benefits at risk.” The FCC didn't comment.