Privacy Focus of Last Week’s DCCP Subcommittee Hearing on Digital Advertising

The Digital Commerce and Consumer Protection Subcommittee of the U.S. House of Representative held a hearing last week on Understanding the Digital Advertising Ecosystem where privacy was a key topic of discussion. We have reviewed the informal transcript for some of the topics of questioning that were posed by the Congressional representatives as well as some of the key concepts discussed by the witnesses. Here are a few of the questions and areas of discussion around privacy:

Data Collection: What techniques are companies using to track consumers online? What information are they collecting?

It appears that the representatives are still trying to get a handle on the full scope of the problem so that they know what they need to do for privacy regulation.

Recording: Are consumers aware whether smart devices are recording everything or not? Are companies mining these conversations? Should there be basic rules about what companies can do?

This discussion came up in the context of Alexa and smart televisions.

Data Sales: Should Facebook, Google and others be considered as selling data even though they claim to not technically sell the data? Is it different if the company keeps control of the data but sells something based on the data that they possess?

The concept of the sale of personal data is an important one in the California Consumer Privacy Act and it appears the Congress is still trying to figure out whether to consider what these companies are doing as selling data.

Privacy Policies: Do consumers have a clear understanding of what’s contained in a privacy policy?

All four participants said no.

Relevant Ads: Is the amount of data being collected necessary to show relevant ads?

They looked at the large amount of data being collected by Facebook and asked whether all of that information was really necessary for a great user experience. There were some objections to Facebook gathering information from across the internet via its like buttons.

Scope of Problem: Are small and medium sized businesses using tracking technology to the same extent as larger businesses?

With this question, the Representatives appear to be trying to figure out whether this is a problem with all companies operating online or if legislation to target only the largest tech companies will address most of the problem.

Cross Device Tracking: Should cross device tracking be permitted?

The example of a couple seeing ads for rings on TV or a shared device after her significant other starts shopping for an engagement ring was discussed several times.

Checks on Data Collection: How do companies balance privacy with providing an effective advertising platform? What are the incentives for companies to not collect data?

This line of questions seemed to be looking to better understand the internal thought process of companies There was a significant discussion around legal reasons for not collecting data, the small costs of extra hosting for data, reasons to not ask for information people will be reluctant to give, the risk/cost of collecting bad data.

Location Tracking: What location data is being collected and shared on phones when the phone is off? On airplane mode? When location is turned off?

A study was discussed where a person walked around Washington DC with several cell phones and then tracked the data that was sent by the phones.

Advertising Competition: What steps can be taken to enhance competition in the advertising marketplace?

Google and Facebook have a significant block of the business due to their advertising platforms. The issue of how to create privacy laws that do not lock in their advantage has been discussed in several hearings.

We will continue to monitor activity in Congress on privacy so check back for additional coverage soon!

Other Blog Posts on Privacy Bills in the US House:

Internet Bill of Rights for Privacy
Information Transparency and Personal Data Control Act
New Privacy Bills: APPS Act and DATA Act of 2018
Highlights of the Secure and Protect Americans’ Data Act in U.S. House
Highlights of Browser Act to Protect Privacy in U.S. House
BROWSER Act and Privacy Discussed in House Communications Subcommittee Hearing
House Subcommittee Asks FTC Commissioners About Consumer Privacy
Do Not Track Kids Act Back in Congress

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