Senators Propose Internet Privacy Bill That Threatens Digital Advertising by Richard B. Newman, April 24, 2018 Earlier this month, Senators Richard Blumenthal and Ed Markey (D-MA) introduced new privacy legislation entitled the Customer Online Notification for Stopping Edge-provider Network Transgressions (“CONSENT”) Act. Senator Markey has referred to the legislation as a “privacy bill of rights” and believes that recent privacy violations have necessitated consent-based legislation. The CONSENT Act directs the Federal Trade Commission to “establish privacy protections for customers of online edge providers.” For example, notification about the collection and use of sensitive customer proprietary information (e.g., financial information, health information and application usage history), the types of information collected, how it will be used and shared, and who it will be shared with. Notably, the CONSENT Act is in “opt-in” regime. It also prohibits refusing to make available products/services in the event that users do not consent to the use and sharing of their information. The CONSENT Act also includes restoration prevention protections, disclosure requirements for discounts/incentives in exchange for the consent to use information, reasonable data security practice development requirements and the implementation of data breach notification requirements. The CONSENT Act would be primarily enforced by the FTC and state Attorneys General. It proses EU-style privacy protections and could severely impact the ability of publishers to monetize data. Also notable is that a California advocacy group is currently attempting to qualify a ballot initiative for EU-style privacy laws for upcoming general election that also poses a threat to ad-supported digital media. The bill can be seen, here. Richard B. Newman is an FTC compliance and defense attorney at Hinch Newman LLP focusing on advertising and digital media matters. His practice includes conducting legal compliance reviews of advertising campaigns, representing clients in investigations and enforcement actions brought by the FTC and state Attorneys General, commercial litigation, advising clients on promotional marketing programs, and negotiating and drafting legal agreements. ADVERTISING MATERIAL. These materials are provided for informational purposes only and are not to be considered legal advice, nor do they create a lawyer-client relationship. No person should act or rely on any information in this article without seeking the advice of an attorney. Information on previous case results does not guarantee a similar future result. Hinch Newman LLP | 40 Wall St., 35thFloor, New York, NY 10005. Filed under: Blue Book, Revenue Tagged under: digital advertising, Ftc attorney, FTC Compliance, Internet Privacy About the Author Richard B. Newman is an FTC defense lawyer at Hinch Newman LLP. He is a nationally recognized FTC defense lawyer and advertising compliance attorney. He regularly provides advertising counsel and represents clients in high-profile investigations (CIDs) and enforcement proceedings initiated by the Federal Trade Commission, state attorneys general, departments of consumer affairs, and other federal and state agencies with jurisdiction over advertising and marketing practices. Richard’s practice also concentrates upon transactional matters relating to the dissemination of national advertising campaigns, including the gamut of affiliate marketing, telemarketing, lead generation, list management and licensing agreements.