Privacy groups file complaint with FTC, call for tougher scrutiny of 'stealth data collection' online

Consumer advocate groups plan to file a complaint with the Federal Trade Commission today, calling on the agency to investigate the "growing privacy threats" presented by advertising technologies that enable the real-time profiling and auctioning of consumer data.

The Center for Digital Democracy, US PIRG and World Privacy Forum filed the compliant, calling the FTC "irresponsible" for failing to better protect consumers. "FTC inaction has encouraged the data collection and ad targeting industry to expand the use of consumer information for personalized advertising," said CDD executive director Jeff Chester. Google, Yahoo, Pubmatic, TargusInfo, MediaMath, eXelate, Rubicon Project, AppNexus and Rocket Fuel are among the companies cited in the complaint for engaging in "stealth data collection" online. These companies, the complaint says, are helping to incorporate outside data sources for the sale of detailed consumer information. The groups want the FTC to require companies to allow customers to opt-in before tracking them. They also want the FTC to ensure consumers receive fair financial compensation for the use of their data.