New Privacy Bill Limits Targeted Advertising

Proposed Legislation Aims to Restrict Online Advertising Practices

A recently proposed piece of legislation intends to significantly alter the current state of online advertising. This change could negatively impact major companies such as Facebook, Google, and organizations that specialize in collecting and utilizing personal data for profit through targeted advertising.

Details of the Banning Surveillance Advertising Act

The Banning Surveillance Advertising Act, spearheaded by Representatives Anna Eshoo (D-CA) and Jan Schakowsky (D-IL) in the House, and Senator Cory Booker (D-NJ) in the Senate, seeks to impose substantial limitations on how technology companies present advertisements to users. Specifically, the bill proposes a complete prohibition on the utilization of personal data in the ad-serving process.

Should this bill become law, ad targeting based on “protected class information,” encompassing characteristics like race, gender, and religion, as well as data acquired from data brokers, would be expressly forbidden.

Permitted Advertising Methods

Despite these restrictions, platforms would retain the ability to target advertisements based on broad geographical data, limited to the city or state level. Furthermore, “contextual advertising” – ads aligned with the content a user is currently viewing – would remain permissible.

Enforcement and Penalties

The bill outlines a framework for enforcement, granting authority to the Federal Trade Commission (FTC) and state attorneys general. Violations could result in fines reaching up to $5,000 per individual incident, provided the violation was knowingly committed.

Arguments in Favor of the Bill

Representative Eshoo articulated that the current “surveillance advertising” model relies on the problematic accumulation and retention of personal data to facilitate ad targeting. She contends that this practice prioritizes user engagement at a considerable societal cost, contributing to the spread of disinformation, discrimination, and privacy violations.

Senator Booker characterized the targeted advertising approach as “predatory and invasive,” emphasizing its role in amplifying misinformation and extremist viewpoints on social media platforms.

Support for the Legislation

Several privacy-focused companies have voiced their support for the proposed legislation. These include DuckDuckGo, a search engine prioritizing user privacy, and Proton, the company behind ProtonMail. Organizations such as the Electronic Privacy Information Center (EPIC), the Anti-Defamation League, Accountable Tech, and Common Sense Media also back the bill.

The legislation is available for review here: [scribd id=553684064 key=key-EcCNhFPa8FPUdU47Z5M8 mode=scroll]