FTC Commissioner Issues a Challenge to Industry: Develop Best Practices to Address Spyware

The U.S. Federal Trade Commission (FTC) recently held a one-day public workshop on the distribution and effects of software commonly referred to as "spyware." The term spyware commonly refers to software that essentially monitors consumers' computing habits. As such, it necessarily raises privacy issues. At the workshop, I issued a challenge to industry to promptly develop a set of best practices with respect to spyware. These best practices should contain several critical elements, including meaningful notice and choice so that consumers can make informed decisions about whether they wish to deal with an online business that uses monitoring software or partners with companies that do.

I also asked industry to develop a public campaign to educate consumers and businesses about what spyware is and how it operates. This public campaign should also discuss the array of technological tools available for consumer use.

Finally, I called upon industry to establish a mechanism that will allow businesses and consumers to maintain a continuing dialogue concerning how government can take action against those who do wrong and undermine consumer confidence through misuse of spyware.

Some members of Congress have called for spyware legislation. I understand the desire to take action before the problems associated with spyware grow worse and injure more consumers and businesses. But I do not believe that legislation is the answer at this time. Instead, we should give industry an opportunity to respond to my challenge. My experience at the FTC working on issues like online privacy and spam tells me that, in approaching such problems, any solution must at the very least be based upon transparency, adequate notice, and consumer choice.

But the opportunity to self-regulate will not last forever. If industry's response is not timely or is inadequate, a legislative approach might be appropriate. And any such legislation should work in conjunction with existing laws like the Federal Trade Commission Act, which allows the commission to stop deceptive or unfair practices.

It is my hope that TRUSTe members will take my challenge seriously and act promptly to address the growing public concern about the development and use of spyware.

Mozelle W. Thompson is a commissioner on the U.S. Federal Trade Commission.

Editor's note: Interested in joining with TRUSTe to rise to the commissioner's challenge? Contact Fran Maier, executive director of TRUSTe, at fmaier@truste.org.