http://www.nytimes.com/cnet/CNET_0-1005-200-6285910.html # # June 15, 2001 # # IE 6 beta pushes ad networks on privacy # # By STEFANIE OLSEN, CNET NEWS.COM # # As Microsoft puts the finishing touches on an upgrade to its # popular browser, Internet advertising companies are racing to # ensure that their ads and cookies are compatible with it. # # Internet Explorer 6, scheduled to be released in August, will # be the first browser to support a new privacy standard called # Platform Privacy Preferences, or P3P. # # With P3P, Web surfers can configure their browsers to # automatically determine whether a Web site collects personally # identifiable information, uses that information to create user # profiles, or allows visitors to opt out of the data collection. # # Ad networks also must post privacy policies that can be read # by the browser. Sites and ads that are not compliant with the # standards being included in IE 6 may not be able to place cookies # on PC users' hard drives. # # "In order for ad networks to continue to set cookies on people's # computers, they'll have to create a P3P privacy policy--many # haven't done that yet," said Richard Smith, chief technology # officer at the Privacy Foundation, a Denver-based watchdog group # and research foundation. Smith said that by his count, about # 50 to 100 marketers and ad networks set third-party cookies, # many of which could be blocked by users of IE 6. # # "All those guys are going to have to hustle to get a P3P privacy # policy in place or their cookies won't work," Smith said. # # The issue recently came to light when some of the 500,000 beta # testers of Windows XP noticed that some ads were not being # displayed while surfing the Web. Windows XP, an upgrade to the # Windows operating system that will be released in October, # includes IE 6. # # Because cookies are an important component of online advertising, # leading ad networks such as DoubleClick and Engage are working # to ensure compatibility with IE 6. # # DoubleClick, for example, uses cookies to create anonymous # profiles on consumers who visit specific sites or content areas, # such as sports pages or financial sites. With this information, # the company might target a Nike ad to a consumer surfing a retail # site who regularly visits sports Web sites. # # Engage, which serves ads for about 3,400 Web sites, is installing # headers so that the browser will be able to read Engage cookies. # Complying with P3P is a "fairly significant expenditure of a # couple of people's time but it's not overly burdensome," said # Engage spokesman Mark Horan. # # "Our site will be P3P-compliant within the next three weeks," # he added. "Much more important, our cookies will be P3P-compliant # before IE 6 launches this fall." # # Jules Polonetsky, DoubleClick's privacy chief, said his company # also will have its privacy policy and cookie headers ready before # the launch of IE 6. # # Meanwhile, the default privacy controls for IE 6 could spell # trouble for some companies that are late in meeting P3P # compliance. # # The default setting in IE 6 allows a "first-party" cookie to # be set, meaning that if a person visits Yahoo the browser will # accept a cookie from Yahoo. # # However, "third-party" cookies--most often set by marketers or # ad networks to track consumer response to promotions--will be # allowed through IE 6 default settings only if the third party # allows consumers to opt out of data-collection practices. If # the company doesn't give consumers an option, the cookie will # be blocked. # # DoubleClick's Polonetsky noted the company does not collect # personally identifiable information with its cookies and does # offer consumers an opt out, so its cookies will be accepted under # IE 6 default settings. # # "This is a great step for protecting consumers' privacy on the # Web," said Rick Miller, a Microsoft spokesman. "Consumers will # be able to control what personal information they give out to # marketers." # # DoubleClick's Polonetsky, who helped to develop the P3P standard, # said that although his company will be prepared for the new # settings, many online companies may run into trouble come August. # # "Here's the surprise: Many Web sites, especially complicated # ones with third-party content provided by their affiliates, may # discover that they are third parties on their own sites," # Polonetsky said. This would create a situation where their cookies # would not be accepted on their own properties. # # However, Smith said that this will not likely be a problem for # many sites because they work fine without cookies, which makes # targeting ads more difficult but not impossible.