Charter in Privacy Hot Seat Over Web Tracking

Internet service provider Charter Communications is drawing heavy fire from lawmakers regarding a new controversial targeted advertising plan that tracks customers' browsing habits to better provide online advertising.

Charter is working with a company called NebuAd for the service. What makes the tracking of Charter customers so controversial is that it is done not using traditional Web browser cookies. Rather, customer Web tracking data is collected by Charter itself and then handed off to a third party (NebuAd). Because ISPs act as gateways to the Internet customers they can track everything you do online.

Lawmakers Raise Privacy Concerns

NebuAd, according to its Web site offers the "first consumer-centric behavioral targeting (ad) network? Through our unique technology and ISP partnerships, NebuAd combines web-wide consumer visibility with micro-targeted ads delivered at the right time in the buying cycle."

Sound spooky to you too?

Now two lawmakers, Reps. Edward Markey (D-MA) and Joe Barton (R-TX), have sent a letter (PDF) to Charter asking it to put the brakes on the advertising plan until they "have an opportunity to discuss with you the issues raised by this proposed venture," according to a letter sent to Charter Chief Executive Neil Smit.

According to Charter customers will be given the opportunity to opt-out of in the four test markets of Fort Worth, Texas; San Luis Obispo, Calif.; Oxford, Mass.; and Newton, Conn. Charter says the data collected from customers is not associated with user names. NebuAd has dabbled in this matter before with a partnership with CenturyTel to provide similar tracking and targeted advertising.

Not satisfied with the opt-out provision Markey stated in his letter: "Simply providing a method for users to opt out of the program is not the same has asking users to affirmatively agree to participate in the program."

Charter also says it will not be tracking or providing targeted advertising based on confidential medical information, racial or ethnic origin, religious beliefs or sexual content. Ads will also not be targeted to children under the age of 13. Charter is able to decide which information to track using Internet cookies. I'm not sure how it will be able to ensure this.

Brave New World of ISP Control

Regardless of the precautions Charter is taking by allowing opt-out services and not tracking specific types of information, it is still under quite a bit of fire. Charter joins Cox and Comcast, whom are also dabbling in the area of traffic control and monitoring recently in regards to peer-to-peer file sharing.

This, of course, brings about privacy concerns, which is the main reason two congressmen are attacking the service, but if Charter, or any other ISP for that matter, can find a way to market this, I think it could be successful. Give me a discount on my monthly Internet fees and track away is what I have to say.

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