Friday, March 21, 2008

New York State Legislature Looking at Online Data Privacy

The New York Times reports on a bill being pioneered by Richard Brodsky, a N.Y. state assemblyman, regulating how online advertisers track users. The plan is to give online users an “opt-out” ability so they can choose whether advertisers can track their habits or not. Currently, advertisers have a relative free-for-all in tracking users online. While privacy advocates have instigated tighter controls over individual user information, what is done with that by the advertiser information is still unregulated.

The Times points out how a bill like this shows the clout a state government can have in the online realm. The bill is not the first in the country, but clearly the most broad in dealing with online ads. If the bill were to pass, companies such as Google and Yahoo would be forced to apply them nationally, since segregating users by state is impossible. Microsoft, another titan of online advertising, is all for tighter restrictions with the hope of ousting their top competition, Google.

Brodsky is still working to finalize the bill, but is actively seeking advice from large online advertisers. Google, Yahoo, and Microsoft all are lobbying strongly in Albany. The final form and scope of the bill will have significant impact on how advertising is conducted online.

Post by Gabriel Kassel

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