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NebuAD Tries To Defuse Public Relations Nightmare
Claims they're developing more privacy friendly opt-out system....

Over the last few weeks, behavioral advertising firm NebuAD has seen their entire business model jeopardized. Charter, Embarq, CenturyTel and Wide Open West, all of whom were either testing or deploying behavioral advertising technology from NebuAD, have either suspended or terminated those plans. The decisions were prompted largely due to concerns that selling user browsing histories violates several Federal wiretap and privacy laws.

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One primary concern was that NebuAD's current cookie-based opt-out system only opts users out of custom ad delivery, not browsing tracking. ISP insiders had told me that NebuAD was working on a new opt-out system -- something that has been confirmed this morning by a NebuAD press release, which says they're developing a "network based-opt out mechanism" that doesn't rely on cookies.
quote:
In addition to its new direct online notification system, NebuAd is also developing a network-based opt-out mechanism that is not reliant on web browser cookies. Leveraging this advanced technology, ISP partners can offer this to their subscribers in order to honor their opt-out choices in a more persistent manner than current systems widely used today.
While NebuAD's press statement today pays lip service to privacy advocates across nearly a dozen paragraphs, it's fairly obvious their primary concern is pleasing lawmakers. Last month, the ranking members of the House Telecommunications Subcommittee, Edward Markey (D-MA) and Joe Barton (R-TX), sent a letter to Charter CEO Neil Smit asking him to suspend his company's NebuAD trials until the systems could be investigated.

At least three wiretapping-related federal laws limit what broadband providers can do with your data: the Electronic Communications Privacy Act of 1986 (ECPA); the Communications Act of 1934; and the Cable TV Privacy Act of 1984 all in one way or another limit an ISPs ability to collect and sell your online activity without your (fairly comprehensive) authorization. It's not yet clear whether simply having an opt-out system that actually works is going to be enough to save NebuAD's skin.

Most recommended from 32 comments



BK3
join:2001-04-10
Geneva, IL

2 recommendations

BK3

Member

Opt-In, not Opt-Out

I suppose the requiring users to Opt-IN would be unacceptable to the ISPs and NebuAd.

I would find this to be an acceptable option, but it would, no doubt, lessen the number of users impacted and therefore lessen the profits made by the ISP and NebuAd.

While I would find the Opt-IN to be OK, I'm sure that ISPs and NebuAd would not like this approach, and would do all in their power to fight this and keep it an Opt-OUT only system.