Contents 1 Online advertising – Privacy 1.1 Privacy Guidelines 1.2 Privacy Principles 1.3 List of Organizations on their Privacy Guidelines and Principles 1.4 Related Articles 1.5 References

Online advertising – Privacy

Privacy is an elusive concept, that encompasses both ethically and legally aspects (Strauss, El-ansary and Frost 2003, 117). Technology advances, marketing online environment is therefore ever changing. Plenty of opportunities to develop new products, new markets, new strategies, new channel and new media for communication are being provided gradually. Simultaneously, at this progression, environmental factors rises and that affect marketing online. Privacy within digital contexts focuses on information. Information plays a pivotal role in the concept of privacy as well as that of marketing and E-Commerce (Strauss, El-ansary and Frost 1999, 119). Privacy is one of the key areas under the legal factors that are constantly carefully handled and discussed when involving with online marketing. In essence, privacy’s young tradition has always been about information and the means of its delivery (Strauss, El-ansary and Frost 1999, 117). Siegal (2004) point out that U.S. marketers routinely collect personal consumer data electronically, share it with other companies and use it to personalize online advertisements, offers and for communication technologies - email permission marketing. Many information mechanisms posses concern privacy online. These online mechanisms include encryption software, cookies, clickstreams, java applets and intelligent agents. These are ubiquitous applications as Strauss, El-ansary and Frost 2003 claim that is they are able to function in the course of nearly any online session, without a user’s knowledge or control. The ease of their operation places privacy implications. Privacy is difficult to legislate, yet it is critically important to consumers who routinely yield personal information over the Internet. Current discussion on privacy issues of online advertising involve user giving self information online. This poses worries and concerns to user on how their self information is being handled. The concern inquires on:

• Are user given a choice to on what information to give to the organizations online

• Are user explained exactly what is done with the information provided to the organization.

• Will Emarketer sell any personally identifiable information (PII)obtained from a user to a third party?

Privacy Guidelines

To ensure the end user is able to continuously use the Internet at ease, advertising practitioners work together to form code of practice pertaining to conform to privacy standards for online advertising that protects the privacy of online users. For all online activities it is important that privacy policy is being adopted. Interactive Advertising Bureau [/www.iab.net/ IAB] is one of the federations devoted exclusively to promoting the use and effectiveness of advertising on the Internet. Under their set of privacy standards, its privacy guideline covers aspects in:

1. Adoption and Implementation of a Privacy Policy
   • An organization engaged in online activities or electronic commerce has a responsibility to adopt and implement a policy for protecting the privacy of personal identifiable information (PII).
2. Notice and Disclosure
   • An organization must provide a clear and conspicuous link to the privacy policy from the Web site home page and any page that collects PII.
3. Choice and Consent
   • Individuals must be given the opportunity to exercise choice regarding how PII collected from them online may be used. This choice refers to provide users with the ability to opt-out at certain circumstances
4. Data Quality and Access
   • Organizations creating, maintaining, using or disseminating individually identifiable information should take reasonable steps to assure that the data are accurate, complete, relevant and timely for the purposes for which they are to be used.
5. Limited Use
   • Organization’s privacy policies must make reference to why PII is being collected, and how it will be used. The use of PII should be limited to the original purpose specified for its collection.
6. Data Security
   • Organizations creating, maintaining, using or disseminating individually identifiable information should take appropriate measures to assure its reliability and should take reasonable precautions to protect it from loss, misuse or alteration.
7. Trans-border Data Flows
   • Any organizations involved in the flow of PII with European- based countries should ensure they are in compliance with the Department of Commerce International Safe Harbor Principles.

Privacy Principles

According to Canadian Marketing Association, their codes of ethics and standards of practice in protection of personal privacy have seven principles of personal privacy that marketers need to recognize and abide to. The seven principles are:

1. Giving Consumers Control of How Information About Them is Used
2. Providing Consumers with the Right of Access to Information'
3. Enabling Consumers to Reduce the Amount of Mail They Receive
4. Controlling the Use of Information by Third Parties
5. Safely Storing Information About Consumers
6. Respecting Confidential and Sensitive Information
7. Enforcement

List of Organizations on their Privacy Guidelines and Principles

• Australia Office of the Privacy Commission - Guidelines to the National Privacy Principles

• Australia Office of the Privacy CommissionInformation Privacy Principles under the Privacy Act 1988

• Australia Office of the Privacy Commission - Federal Privacy Act

• Online Privacy Alliance - Guidelines for Online Privacy Policies

• Federal Trade Commission - Advertising and Marketing on the Internet: Rules of the Road

• Network Advertising Initiatives - NAI Privacy Policy

Related Articles

• Advertising Federation Launches Privacy Initiative

• Privacy and Security: Fraud, Identity Theft, Phishing, Viruses and Other Threats

Privacy Worries Plague E-Biz

• Net Users Urge Standards Group To Protect Privacy

References

Canadian Marketing Association. 2005. Canadian Marketing Association on-line. Marketing Association website. www.the-cma.org (accessed on October 12, 2005).

Interactive Advertising Bureau. 2005. Interactive Advertising Bureau on-line. Interactive media Association website. www.iab.net (accessed on October 03, 2005).

Siegal, C. 2004. Internet Marketing: Foundations and Applications. “Online Ethics and Privacy�?. 117 – 127. Boston: Houghton Mifflin Company. ISBN 0618150439

Strauss, J., E. Adel and F. Raymond. 2003. E-Marketing – Ethical and Legal Issues. 112 – 141. 3rd ed. New Jersey: Prentice Hall. ISBN: 0130497576

Sishi Foo 23:51, 27 Oct 2005 (EST)