FTC Flexes Its Muscle on Online Privacy
Last year, the Federal Trade Commission accused the online ad industry of not moving fast enough to protect consumers’ online privacy. This year, the FTC flexed its authority to do something about it, reaching a settlement with Chitika, an online ad company.
The FTC’s action came Monday, just two days before the Senate Commerce Committee holds a hearing on online privacy at which FTC Chairman Jon Leibowitz is scheduled to testify.
During its investigation of Chitika, the FTC found that the company, which bought ad space on Web sites and tracked consumers’ online activity via cookies, offered an opt-out that only lasted 10 days, allowing the company to resume tracking consumers.
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