The internet is a data-rich place for marketers looking to use behavioral targeting to put the right message in front of the right customer. But that plan may now have to be routed through Albany, New York, where lawmakers are working on legislation that would limit the extent to which companies like Google and Microsoft can use information gathered online to sell ads.
According to a recent New York Times article, state lawmakers have begun to take note of data collection practices. While the online advertising industry continues to see a frenzied pace of mergers and acquisitions -- one largely fueled by the quest for more data -- lawmakers are proposing legislation that would make it illegal to use personal data for advertising purposes without the consent of the user.
There is currently little federal law with respect to collecting and using personal data for advertising. Last year, a proposed do-not-track list -- similar to the do-not-call list that has reshaped the telemarketing industry -- fizzled largely because there seemed to be no way to organize such a proposition.
Whether the proposed New York law is better able to clarify and legislate the issue remains unclear. In the meantime, such a law could be bad news for marketers.
"A law like this essentially takes some of the gold away from marketers," Joseph Turow, a professor at the Annenberg School for Communication at the University of Pennsylvania, told The New York Times. "But it's the right thing to do. Consumers have no idea how much information is being collected about them, and the advertising industry should have to deal with that."