Federal Do-Not-Track (DNT) legislation would require the Federal Trade Commission to develop rules and enforce a global opt-out preference by users.
2011 has seen the introduction of over eight federal privacy bills, three of which involve the creation of Do-Not-Track mechanisms (S 913, S 799, HR 654).
American websites would lose $33 billion over five years if Congress mandated EU-style opt-In consent.
At first blush, given the success of the federal Do-Not-Call program, a DNT mechanism seems like a good idea. But comparing phone numbers to Internet addresses is a misguided comparison. Unlike a phone number, of which most people have just one, a DNT mechanism would need to register every computer, tablet, gaming console, and smart phone a user owns, thus making the viability of this service unlikely.
Worse is the cost to good businesses that rely on the revenue generated from advertising and the resulting harm to consumers. NetChoice analyzed the costs and found American websites would lose $33 billion over five years if Congress mandated EU-style opt-in consent for interest-based advertising. This analysis was cited in a Congressional hearing on whether the US should adopt the EU-style opt-in model.
This means less money for websites to spend on content, services, and innovations. To make-up the lost revenue, websites might start charging for otherwise free services, or put up more ads on their sites. Asked about trading services for privacy, only 24% of adults surveyed said they would prefer to pay for ad-supported services they get for free today and not share any information.
Lastly is the lack of harm shown by lawmakers to justify the need for DNT (remember that DNT would apply mostly to non-sensitive information and not financial or medcial information). NetChoice has repeatedly asked legislators and listened whenever they spoke about privacy. To date, we have yet to hear them identify a specific harm that would be solved by DNT.
The DNT list legislation is a solution in search of a problem.
NetChoice Letter to California Legislators in Opposition of Do Not Track Bill
Estimate of US Revenue Loss if Congress Mandated Opt-In for Interest-Based Ads
NetChoice Comments to the FTC Do Not Track Staff Report
NetChoice Comments on Department of Commerce Green Paper
NetChoice Concerns on Federal Privacy Bills
For Privacy, “Where’s the Beef?” becomes “Where’s the Harm?”
The Facts Speak for Themselves on Privacy for Social Networking Sites
Privacy Legislation: A Solution In Search of a Problem
Do Americans Really Want Do Not Track?
