Online Privacy: Will Self-Regulation Keep Regulators At Bay?

The New York Times just published an article detailing the online advertising industries solution to online privacy concerns. The solution? A small blue icon with the letter "i" that will inform consumers that their personal information is being harvested and used to deliver online ads. Phrases such as "why did I get this ad?" will also be used to help consumers understand the meaning of the icon. When someone clicks on the blue icon, they will be taken to a page detailing what information is being collected and how it is being used. The article suggests that this disclaimer will be written in easy to understand, non-lawyer, English, instead of the overly complicated privacy policies that websites currently use. Major advertising groups are expected to begin using the icon by mid-summer, but the adoption of the icon is voluntary. There is no legal obligation to use the icon, or make information collecting practices on the internet more transparent to consumers.
The icon is the outcome of the major advertising industry groups' July 2009 statement over stricter self-regulation. The new head of the F.T.C.'s Bureau of Consumer Protection does not seem to be fond of the current practices of marketers on the internet. His interview with the NY Times clearly showed his support for consumers, and distaste for the current information collecting practices.
So, will the little blue "i" be enough to keep the F.T.C. and Congress quiet? Because this is going to be an optional tag, many will choose not to adopt this new symbol. Besides, it will have to take up a spot of valuable real estate that many won't want to part with. Many laws are regularly ignored and broken by people on the web already (spam and music come to mind), so I don't have a lot of faith in everyone volunteering to self-regulate. What will be interesting to watch is how many people react when they finally realize that information is being collected when they surf the web. I think if you said cookie to most people they would say "chocolate chip or oatmeal?"