[Infowarrior] - EU issues ultimatum on internet privacy

[Richard Forno]

EU issues ultimatum on internet privacy

http://www.theregister.co.uk/2009/03/31/kuneva_behavioural/

By Chris Williams • Get more from this author

Posted in Telecoms, 31st March 2009 10:55 GMT

The European Commission today delivered an ultimatum to internet firms  
- improve your approach to privacy online, or face a regulatory  
clampdown from Brussels.

Meglena Kuneva, the consumer affairs Commissioner, told a gathering of  
ISPs, major websites and advertising firms they are violating "basic  
consumer rights in terms of transparency, control and risk", through  
data collection and behavioural targeting.

"I want to send a warning signal today that we cannot afford foot  
dragging in this area," she said.

"If we fail to see an adequate response to consumers concerns on the  
issue of data collection and profiling, as a regulator, we will not  
shy away from our duties nor wait for a cataclysm to wake us up."

Officials are understood to be particularly concerned about ISPs'  
experiments using Deep Packet Inspection (DPI) technology to intercept  
and profile their customers' web use. The information society and  
media Commissioner Viviane Reding's department is still investigating  
the UK government's apparent failure to enforce European privacy law  
over BT and Phorm's secret trials of such a system in 2006 and 2007.

Kuneva's initiative will also address behavioural targeting and data  
collection by websites.

Google launched its own behavioural tracking network earlier this  
month, requiring consumers who do not want to be tracked to opt out.  
"We must establish the principles of transparency, clear language, opt- 
in or opt-out options that are meaningful and easy to use," Kuneva  
said. "I am talking about the right to have a stable contract and the  
right to withdraw."

She will tell delegates that to avoid regulation they must agree rules  
to protect consumers' rights, in line with existing legislation. The  
UK's Internet Advertising Bureau recently published behavioural  
advertising guidelines in an attempt to ward off regulation. Privacy  
activists were not satisfied, however, particularly with the  
guidelines' onus on consumers to opt out.

Proponents of behavioural targeting point to anonymising measures as a  
guarantee of privacy. Phorm identifies users only via a random token,  
but Kuneva will argue such steps do not completely mitigate privacy  
conerns.

"The current work on privacy has concentrated on eliminating  
personally identifiable information such as name or IP addresses from  
the public domain," she said. "Consumer policy needs to go beyond that  
and address the fact that users have a profile and can be commercially  
targeted based on that profile, even if no one knows their actual name."

Kuneva's department will also today begin an informal investigation of  
online privacy and data collection in preparation for potential  
regulatory action. At a recent Westminster event, British peers said  
the Information Commissioner's Office, responsible for enforcing EU  
privacy regulations, had failed in its duty to consumers over  
behavioural targeting.

In separate news on Monday, Phorm officially announced a trial of its  
technology by Korea Telecom. ®