OnGuardOnline.gov is a project of a dozen federal agencies and several private child safety organizations who have collaborated to create a website which “provides practical tips from the federal government and the technology industry to help you be on guard against Internet fraud, secure your computer, and protect your personal information.” The Federal Trade Commission (FTC) is particularly instrumental in maintaining and promoting the site but it works closely with those other agencies and organizations to craft messages and programs.
OnGuardOnline has just released a terrific new online safety resource called
Net Cetera: Chatting with Kids about Being Online. This 54-page document is an outstanding resource for parents. The report’s advice and recommendations are spot on across the board and I particularly want to highlight the important section right at the front of the document entitled, “Talk to Your Kids.” It begins: “The best way to protect your kids online? Talk to them. Research suggests that when children want important information, most rely on their parents.” Quite right. And the NetCetra report goes on to offer the following excellent advice:
- Start early. After all, even toddlers see their parents use all kinds of devices. As soon as your child is using a computer, a cell phone or any mobile device, it’s time to talk to them about online behavior, safety, and security. As a parent, you have the opportunity to talk to your kid about what’s important before anyone else does.
- Create an honest, open environment. Kids look to their parents to help guide them. Be supportive and positive. Listening and taking their feelings into account helps keep conversation afloat. You may not have all the answers, and being honest about that can go a long way.
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If you read nothing else this year about dynamic competition theory and antitrust, check out this recently-released paper by J. Gregory Sidak and David J. Teece, available from SSRN. Sidak and Teece explain why the current economic framework that formally underpins antitrust insufficiently accounts for “Schumpeterian,” “innovative,” or “dynamic” competition. They provide a good discussion of the insights from behavioral economics, evolutionary economics, Austrian economics, and corporate strategy that would be useful in remaking the economic foundations of antitrust. Then they explain implications for specific topics, such as market definition, defining potential competitors, mergers, and intellectual property.
Most intriguing is their claim that the antitrust agencies have been drifting toward dynamic competition analysis without always acknowledging that’s what they’re doing:
If a lesson can be generalized, it is that one should approach with considerable skepticism the august pronouncements of the suppleness of existing antitrust doctrine to accommodate consideration of dynamic efficiency. It is time for the antitrust enforcement agencies and the courts to address forthrightly the challenge of developing more dynamically efficient merger guidelines. Achievement of that goal would lay the foundation for an analogous refinement of substantive rules of liability, defenses, and remedies across antitrust law generally. (pp. 43-44)
Sidak and Teece note that the Federal Trade Commission and Antitrust Division’s recent solicitation of comments on their merger guidelines could provide an opportunity to articulate some new economic foundations for antitrust. After reading the list of things the FTC and DOJ do not intend to change, it looks to me like the agencies will cling pretty fiercely to many traditional static concepts used in antitrust analysis. But two questions they raise provide glimmers of hope:
8. Should the Guidelines be revised to explain more fully … how market shares and market concentration are measured and interpreted in dynamic markets, including markets experiencing significant technological change?
15. Should the Guidelines be updated to address more explicitly the non-price effects of mergers, especially the effects of mergers on innovation?
Still, this seems narrow to me. “Normal” markets will remain subject to static analysis, while those special markets experiencing significant technological change might be analyzed differently. That seems to define dynamic competition awfully narrowly.
The Federal Trade Commission (FTC) has just announced it will be hosting:
a series of day-long public roundtable discussions to explore the privacy challenges posed by the vast array of 21st century technology and business practices that collect and use consumer data.” Such practices include social networking, cloud computing, online behavioral advertising, mobile marketing, and the collection and use of information by retailers, data brokers, third-party applications, and other diverse businesses. The goal of the roundtables is to determine how best to protect consumer privacy while supporting beneficial uses of the information and technological innovation. The roundtable discussions will consider the risks and benefits of information collection and use in online and offline contexts, consumer expectations surrounding various information management practices, and the adequacy of existing legal and self-regulatory regimes to address privacy interests.
The first of these roundtables will be held on December 7, 2009 at the FTC Conference Center in Washington, D.C. Additional information can be found here.
I’m sure my colleague Berin Szoka will have much more to say about this in coming days and weeks — and I very much hope the FTC will invite him in to testify — but, for now, I just want to reiterate the three key challenges we have been posing again and again and again and again in all our work on this subject:
- Identify the harm or market failure that requires government intervention.
- Prove that there is no less restrictive alternative to regulation.
- Explain how the benefits of regulation outweigh its costs.
I hope those issues are front and center at these workshops and we get some firm answers because the dangers of breaking the very few Internet business models that actually work is a very steep price to pay for the conjectural harms bandied about by some privacy zealots.
On July 27th, The Progress & Freedom Foundation hosted a Capitol Hill panel discussion entitled “Online Child Safety, Privacy, and Free Speech: An Overview of Challenges in Congress & the States.” The event featured remarks from:
- Parry Aftab, Executive Director, WiredSafety.org
- Todd Haiken, Senior Manager of Policy, Common Sense Media
- Jim Halpert, Partner, DLA Piper
- Berin Szoka, Senior Fellow, The Progress & Freedom Foundation
We’ve just released the transcript of the event, which I have also pasted down below the fold in a Scribd document reader. Also, the audio for this event can be heard by clicking below:
Download mp3
Here is the full event description: Continue reading →
The latest edition (Version 4.0) of my PFF special report on “Parental Controls and Online Child Protection: A Survey of Tools & Methods” is now up. For those not familiar with the report, it explores the market for parental control tools, rating schemes, education and media literacy efforts, and various other tools, methods, and initiatives aimed at promoting online child safety. After evaluating that state of this market, I conclude: “There has never been a time in our nation’s history when parents have had more tools and methods at their disposal to help them decide what constitutes acceptable media content in their homes and in the lives of their children.” Moreover, I believe that the parental controls and content management tools cataloged in the report represent a better, less restrictive alternative to government regulation.
Version 4.0 of the report is now over 250 pages long (up from 200 pages in Version 3.0) and it contains almost 70 exhibits (up from 50), 725 references (up from roughly 500), and numerous updates in all five sections of the book. Major updates have been made to the Internet, social networking, and mobile media sections, reflecting the growing importance of those sectors and issues. Other new sections or appendices have also been added to the report, including:
- a new section examining how many households really need parental control tools;
- a new appendix on the downsides of mandatory parental controls and restrictive default settings;
- a new section on the dangers of “deputizing the online middleman” solution as an approach to solving child safety concerns;
- a new appendix reviewing the findings of 5 past online safety task forces;
- … and much more.
I issue major updates once a year and 1 or 2 minor tweaks during the course of the year to reflect the evolution of the parental control and online child safety marketplace and debate. The report is available free-of-charge on the PFF website, and the previous editions of the report are housed there too in case you want to see how it has evolved over the past couple of years. For those interested in taking a quick look at the report, I have embedded it down below the fold as a Scribd file. Finally, as is always the case, I encourage readers to send me updates and suggestions for how to improve the report and I will incorporate them into future versions.
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Over at SiliconAngle, my friend Andrew Feinberg has posted an interesting column defending federal oversight of “sponsored blogging,” or blogging that might be in some way be tied to a financial interest. The Federal Trade Commission (FTC) is now looking into that matter and threatening to bring the blogosphere under the thumb of federal regulators. In his essay, “Why the FTC is Absolutely, 100 Percent Right on Sponsored Blogging,” Andrew argues that:
The Federal Trade Commission wants to keep an eye out for unscrupulous behavior by corporations and media. This is their job. They could leave well enough alone for fear of being accused of meddling with the internet, but they recognize that as technology changes, the rules that govern the relationship between marketers and consumers must be made to fit those changes.
This is not always easy. The Federal Communications Commission has had a rulemaking open on embedded advertising (product placement) in children’s programming for some time now. It is well know that it’s unlawful to market directly to children during certain times, and on certain programs. But FCC efforts to adapt the rules have been stymied by a cumbersome process and a lack of authority (the FCC may only regulate content on broadcast television).
On the other hand, the Federal Trade Commission has much broader authority. And their job is to keep things fair.
I responded in the comments to his piece as follows:
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by Berin Szoka & Adam Thierer
This morning, the House Energy & Commerce Committee will hold a hearing on “Behavioral Advertising: Industry Practices And Consumers’ Expectations.” If nothing else, it promises to be quite entertaining: With full-time Google bashers Jeff Chester and Scott Cleland on the agenda, the likelihood that top Google officials will be burned in effigy appears high!
Chester, self-appointed spokesman for what one might call the People for the Ethical Treatment of Data (PETD) movement, is sure to rant and rave about the impending techno-apocalypse that will, like all his other Chicken-Little scenarios, befall us all if online advertisers were permitted to better tailor ads to consumers’ liking. After all, can you imagine the nightmare of less annoying ads that might actually convey more useful information to consumers? Isn’t serving up “untargeted” dumb banner ads for Viagra to young women and Victoria’s Secret ads to Catholic school kids the pinnacle of modern online advertising? Gods forbid we actually make advertising more relevant and interest-based! (Those Catholic school boys may appreciate the lingerie ads, but few will likely buy bras.)
Anyway, according to National Journal’s Tech Daily Dose, the hearing lineup also includes:
- Charles Curran, Executive Director, Network Advertising Initiative
- Christopher Kelly, Chief Privacy Officer, Facebook
- Edward Felten, Director, Center for IT Policy, Princeton University
- Anne Toth, Chief Privacy Officer & Vice President, Policy, Yahoo!
- Nicole Wong, Deputy General Counsel, Google
That’s an interesting group and we’re sure that they will say interesting things about the issue. Nonetheless, because four of them have a corporate affiliation that fact will inevitably be used by some critics to dismiss what they have to say about the sensibility of more targeted or interest-based forms of online advertising. So, we’d like to offer a few thoughts and pose a few questions to make sure that Committee members understand why, regardless of what it means for any particular online operator,
targeting online advertising is very pro-consumer and essential to the future of online content, culture, and competition. As Wall Street Journal technology columnist Walt Mossberg has noted, “Advertising is the mother’s milk of all the mass media.” Much of the “free speech” we all cherish isn’t really free, but ad-supported!
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Adam Thierer & I have just released a detailed examination (PDF) of brewing efforts to expand the Children’s Online Privacy Protection Act of 1998 to cover adolescents and potentially all social networking sites—an approach we call “COPPA 2.0.”
As Adam explained on Larry Magid’s CNET podcast, COPPA mandates certain online privacy protections for children under 13, most importantly that websites obtain the “verifiable consent” of a child’s parent before collecting personal information about that child or giving that child access to interactive functionality that might allow the child to share their personal information with others. The law was intended primarily to “enhance parental involvement in a child’s online activities” as a means of protecting the online privacy and safety of children.
Yet advocates of expanding COPPA—or “COPPA 2.0″—see COPPA’s verifiable parental consent framework as a means for imposing broad regulatory mandates in the name of online child safety and concerns about social networking, cyber-harassment,
etc. Two COPPA 2.0 bills are currently pending in New Jersey and Illinois. The accelerated review of COPPA to be conducted by the FTC next year (five years ahead of schedule) is likely to bring to Washington serious talk of expanding COPPA—even though Congress clearly rejected covering adolescents age 13-16 when COPPA was first proposed back in 1998.
We’ll discuss some of the key points of our paper in a series of blog posts, but here are the top nine reasons for rejecting COPPA 2.0, in that such an approach would:
- Burden the free speech rights of adults by imposing age verification mandates on many sites used by adults, thus restricting anonymous speech and essentially converging—in terms of practical consequences—with the unconstitutional Children’s Online Protection Act (COPA), another 1998 law sometimes confused with COPPA;
- Burden the free speech rights of adolescents to speak freely on—or gather information from—legal and socially beneficial websites;
- Hamper routine and socially beneficial communication between adolescents and adults;
- Reduce, rather than enhance, the privacy of adolescents, parents and other adults because of the massive volume of personal information that would have to be collected about users for authentication purposes (likely including credit card data);
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Chris Soghoian has responded to my recent post lauding his Targeted Advertising Cookie Opt-Out (or “TACO” – documented and downloadable here). We’re agreed in the main on user empowerment. The interesting stuff is on the margin: He disagrees with me that blocking third party cookies as I do (and he does too) is a satisfactory approach to suppressing tracking by advertisers.
There are a couple of points worth making about the discussion.
The first has to do with our slightly differing objectives. Chris is deeply focused on advertisers and his dislike of being tracked by advertisers. Though it is not absolute, I have a preference against tracking by anyone other than sites that I know, like, and trust. I’m no more worried about advertisers than any entity that would track my surfing – and there are many.
Again, TLF readers, I ask you to try setting your browser to query you before setting cookies. It’s a real insight into the dozens of entities getting a look at you as you surf, including a bunch of social networks and news sites.
If “advertisers” are what you seek to harness, that seems like a group that can be captured through some kind of centralized control mechanism. (I don’t think it actually is.) But if your goal is privacy as against all comers, you don’t attempt to centrally plan or decide who is good and who is bad. Responsibility rests with the end user.
Let the goal be “advertisers,” though. And I ask: Those social networks and news aggregators – are they “advertisers”? If you’re going to require a subset of Web communicators to obey opt-out cookies, you have to be able to define that subset – a problem Chris doesn’t seem to have thought about yet.
Lots of different publishers, sites, and networks have data that is entirely fungible with the tracking data advertisers collect. What do you get if you push down on the “officially advertisers” part of the balloon? Workarounds.
But I’ve backed into the second point – the means to these ends. Chris soft-pedals how he would get at tracking, but as far as I can tell it’s a law that says “advertisers” have to obey opt-out cookies. Continue reading →
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.