This article by Adam Lehman, COO/GM of Lotame, originally appeared in AdvertisingAge. Click here to see the original.
The Data Diaries
Data-Driven Marketing: I can’t go on like this.
U.S. Government: But I feel like I’m just getting to know you.
DDM: But don’t you see? That’s the problem. I’m more complicated than you’ll ever understand.
USG: I can’t accept that. I need you close to me.
DDM: Why? We were both doing o.k. before we met. And since then, let’s face it – you’ve been all over me.
USG: It’s just my way. But I have a plan so we can at least be friends.
That’s the backdrop for the recent White House announcement and report on “Consumer Data Privacy In A Networked World.” So what to make of this new two-step in the ongoing dance between government and industry over how to regulate the burgeoning data economy in the U.S.?
As with anything coming out of D.C., we should start with the political angle. And this should play as good politics. First off, heading into a re-election campaign, who’s not in favor of consumer privacy? While not rising to puppy dog and apple pie status, the average voter seems to want some degree of privacy attached to his or her digital life, so delivering this report through a more forceful White House announcement and brand enables the President to add consumer privacy to the litany of issues he took on in his first term. The White House also handled the legislative angle with skill. In the context of 8 different pieces of privacy legislation currently pending in Congress which appear to be going nowhere for the time being, the White House reports calls for its “Consumer Bill of Rights” to be passed into law – but gives equal billing to an immediate effort to convene all stakeholders in a parallel process to develop self-regulatory codes of conduct reflecting this new Bill of Rights. Adding emphasis to this dual track, the White House included the industry umbrella group, the Digital Advertising Alliance, in the White House event and trumpeted an agreement reached with the DAA to require its members to honor Do-Not-Track headers.
And for the substance? On first pass, the report appears to carry over many of the positive aspects of the initial Department of Commerce Green Paper. For starters, the recommended frameworks are principle-based (largely steering clear of prescribing soon-to-be-obsolete technical standards or getting too far into the weeds on definitions). Given the constantly changing landscape of technologies, business models, business and consumer practices and consumer expectations, it’s a fool’s errand to pursue anything other than high-level principles. In addition, the report devotes quite a bit of airtime to the goal of increasing global interoperability. (Good luck on that one, but at least this objective recognizes the significant challenges facing digital businesses when it comes to understanding and meeting compliance standards outside the U.S.) On the more cynical side of the coin, much of what’s discussed in the report is a reflection of the present state of play, rather than a dramatic new direction. For example, we already have multi-stakeholder processes yielding enforceable codes of conduct – most notably, the DAA’s self-regulatory principles for Online Behavioral Advertising and Multi-Site Data. In that regard, many of the proposed elements of the Consumer Privacy Bill of Rights are already reflected in these existing codes of conduct. As for another policy prong in the report – strengthening the FTC’s enforcement authority to prohibit unfair and deceptive acts or practices – last I checked, the FTC already fully possesses this authority and is actively exercising it. Even the industry “Down Payment” on the Individual Control principle by agreeing to honor Do-Not-Track headers simply formalizes what many companies (including my own) have been doing for months.
More to tell as we get past “flash analysis” to “fine-tooth-comb” review of the 50 page report. But one thing we know for sure: with the various follow items called for in the White House report, and the next FTC report scheduled to arrive soon, the dance will continue. Hopefully industry's legs will be fresh enough to keep up with all of the twists and turns, so the Internet can continue to be the "engine of innovation, business growth, and job creation" acknowledged in the White House's announcement.
