Posted on March 19, 2008 - 9:30am by morningcoffee
The FTC has settled with ValueClick for $2.9 million this week, and has settled with Adteractive and Member Source Media. This does not mean that its investigation into shady lead generation practices is over. On the contrary, the FTC plans to be more vigilant.
Going beyond deceptive programs and ads offering consumers "free" merchandise, the FTC will now delve into matters of security and privacy. ValueClick's settlement included that the company "did not encrypt sensitive information consistent with industry standards," according to MediaPost. Lax security of the sensitive data collected by companies like ValueClick about their users puts them in the crosshairs of data breaches and online identity theft. This also contradicts the privacy terms and conditions of many companies, which state that all information collected is secure.
Standard measures and practices in the realm of online lead generation have been long overdue. Regulation of the companies themselves has also been long overdue. But at least some process is being made, and it looks like it will only continue to move forward. One would hope this type of scrutiny will lead to improvements for both marketers and users.





