Home Privacy FTC Zeroes In On AppNexus, Oath As Part Of Its Broadband Privacy Inquiry

FTC Zeroes In On AppNexus, Oath As Part Of Its Broadband Privacy Inquiry

SHARE:

The Federal Trade Commission (FTC) is researching the privacy practices of AppNexus, Oath and other advertising subsidiaries owned by broadband companies.

The agency is in the midst of examining the privacy policies, procedures and practices of broadband providers as part of an overarching study into how telecom companies are morphing into vertically integrated behemoths that also distribute ad-supported content.

Although this is just an early fact-finding exercise, not an investigation, the FTC’s interest could represent a risk factor for AT&T’s big bet on data-driven advertising with Xandr.

To kick off its study, the FTC initially sent orders to seven broadband providers in March seeking info on how they collect, retain, use and disclose data about consumers and their devices.

AT&T Inc., AT&T Mobility, Comcast (doing business as Xfinity), T-Mobile, Google Fiber, Verizon Communications and Verizon Wireless all received the order.

But on Thursday, the commission announced that it’s withdrawing those orders and reissuing new ones aimed specifically at their advertising divisions. It’s possible that the FTC hit a brick wall with its first series of requests to the larger parent companies and were directed to their advertising arms.

The FTC is now seeking privacy-related information from AT&T-owned AppNexus, Verizon Online and Verizon-owned Oath. The commission is also adding a new inquiry to Charter Communications, the second largest cable provider in the United States.

The orders want details on everything from what the companies collect; the techniques used for collection; whether the data is shared with third parties; internal policies for access to data; their data retention policies; copies of their data collection disclosures; and their procedures for allowing consumers to access, correct and/or delete their personal information.

The FTC currently has authority over the privacy practices of common carriers such as Verizon and AT&T.

But, back in 2015, the FTC had been effectively stripped of that authority when the Federal Communications Commission (FCC) ruled under then-commissioner Tom Wheeler that broadband internet should be classified as a common carrier service.

The following year, the FCC passed a set of strict ISP privacy rules, which would have required broadband providers to get explicit opt-in before using subscriber data for targeted advertising, including web browsing, app usage and geolocation info.

In April 2017, President Trump repealed the FCC’s ISP privacy rules, seemingly opening the door to telcos and their data-driven advertising ambitions.

Must Read

How Warner Bros. Discovery Is Creating Value Out Of Dead Air With Pause Ads

Streaming publishers are banking on pause ads to bolster revenue with a more user-friendly ad experience. With programmatic standardization still pending, Warner Bros. Discovery is taking a stab at advancing the capabilities behind its own pause ad formats.

Peacock Hits Profitability As Comcast Prepares To Spin Off NBCU

Peacock hit what Comcast Co-CEO Mike Cavanagh called “meaningful profitability” for the first time in Q2, just as Comcast decided to let it leave the nest. 

Comic: It's Coming For You

Programmatic Platforms Champion Transparency, But Not If It Means Giving Activists Access

A DSP refused to give ad industry watchdog Check My Ads a seat on its platform, even after both parties cosigned a master service agreement, citing concerns about “protections” for “vendor and supply partners.”

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Alphabet Smashes Ad Revenue Earnings Again – But Does It Still Care About Ads?

Investors didn’t bring up Google’s advertising business or ads in general once during the Q&A portion of Alphabet’s earnings report call on Wednesday.

Podcast concept illustration. Female radio host interviewing guests on radio station. Podcast in studio flat vector illustration. Man and woman in headphones talking. Vector in flat style

Comscore Wants To Make Buying Podcast Ads Feel More Like Buying CTV Or Display

Comscore is adding Spotify, SiriusXM, Triton Digital, Acast and Libysn to its Proximic targeting solution to build brand-safe, contextual audiences for omnichannel campaigns.

Amazon

Sellers Are Fed Up With Amazon, But Can They Force Change?

Million Dollar Sellers, or “MDS,” is a group of Amazon sellers and specialists. And they’ve had it with Amazon’s advertiser and seller squeeze. But can they do anything about it?