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Budding FTC Restrictions Could Impact Online Behavioral Tracking

The Federal Trade Commission is planning to propose voluntary measures to curtail online privacy abuses that may also allow consumers to opt out of online behavioral tracking.

The FTC's plans, according to published reports and comments made to U.S. Senate committee members by FTC chairman Jon Leibowitz last month, could include a browser-based do-not-track constraint that's akin to the do-not-call list that telemarketers are forced to abide by. The legislation may include a browser plug-in that would store Internet users' tracking preferences that either the FTC or a privacy group would monitor.

If adopted, the FTC measures could impact companies' CRM and online marketing strategies.

For example, under the proposed legislation, Internet users would still be eligible to receive online ads but the ads can't be targeted to users based on Web sites they've visited in the past. Currently, consumers who choose to opt out of online behavioral tracking do so by using cookies or small bits of information about their preferences that are stored on their computer using Web browsers.

The proposed legislation is unfolding as retailers and other companies have been making more extensive use of analytics and other technologies to glean information about Web sites and pages that consumers visit in order to craft offers to them based on their perceived interests.

Although the proposed FTC legislation would have little if any impact on CRM or online marketing strategies with existing customers that companies have developed a history of interactions and transaction histories with, it could create additional obstacles for companies to create targeted offers to prospects.

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