Trio Of Consumer Advocates Press FTC To Investigate Ad Exchanges

FTC Building

Behavioral targeting crusaders at the Center for Digital Democracy have joined with two other consumer advocates, U.S. PIRG, and the World Privacy Forum, on demanding that the FTC look into what they contend are growing privacy threats to consumers from the rise of ad exchanges. Among the companies cited in the 32-page complaint (PDF) are Google (NSDQ: GOOG), Yahoo (NSDQ: YHOO), PubMatic, TARGUSinfo, MediaMath, eXelate, Rubicon Project, AppNexus, and Rocket Fuel.

The complaint claims that the industry’s self-policing regime doesn’t work and it wants to FTC to step and regulate the way consumers’ data is collected and sold through the ad exchanges and other real-time bidding platforms.

The main issue cited is what the CDD says is a lack of awareness among consumers that their data is being used without their consent. Among the remedies the group proposes is for the FTC to force these operators to offer a clear opt-in system for users who wish to allow their data to be collected as well as admit that they are trafficking in personally identifiable information about web surfers. The filing also asks that users be financially compensated for the use of their personal information.

The group also criticizes the FTC’s hands off policy regarding behavioral targeting.

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