Tuesday, March 8, 2011

"Do Not Track" Unintended Consequences

While the U.S. Congress considers 'Do Not Track' legislation, a policy that has the consumer protection value "do not call" has had in the voice area, there always are some unintended consequences.

The European Union, meanwhile, also has announced that starting in May 2011, websites will be required to get explicit consent before collecting information from its users. Privacy is of growing importance, of course.

Still, even pro-consumer regulations can have negative consumer implications. To the extent that "do not track" also dampen demand for all manner of "targeted advertising" efforts, some companies in the advertising and technology spaces will be negatively affected.

But consumers, in some cases, might also find that if ad support is more difficult, some useful application providers might have to consider charging for app use where they might previously have been more inclined to offer "no incremental charge" access. It's hard to say right now how big the impact might be.

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