Privacy scorecard: Carriers, Web firms disclose targeting practices

Responses from telecom-focused firms – including large players like Verizon, smaller independents and pure ISPs like Earthlink – tried hard to distance themselves from any unsavory practices. Verizon, for instance, referenced both its consumer DSL and FioS services, claiming it “does not tailor online advertising based on information gathered from our customer Internet searches, Internet surfing or general Internet usage, and it has never done so,” according to Thomas Tauke, Verizon’s executive vice president for public affairs, policy and communications.

Instead, Verizon said it uses cookie-based advertising on its own Web portal and content properties, a “widely utilized and entirely legitimate business practice.”

For its part, Comcast Cable rather tersely skirted the issue, saying it “has not used, nor has it authorized others to use, its facilities as an Internet service provider to tailor or facilitate the tailoring of Internet advertising.” As for its Web practices, Comcast said if asked about those issues directly, it "would be pleased to submit additional information."

Unlike previous FCC hearings and Congressional hearings on the use of DPI technology to manage – and critics would claim thwart – P2P and other high-bandwidth services on carrier networks, the House committee investigation into ad targeting and privacy cuts a much wider swath. Even in these initial responses, it is clear that two camps are emerging -- network-based and non-network-based ad network providers – with each trying to set up the other as potential fall guy.

Web-based advertising firms like DoubleClick have drawn Congressional attention before, but industry practices such as anonymous cookies and opt-out privacy policies have stalled government intervention. But network-based DPI and behavioral advertising techniques from ad firms like NebuAd and Phorm have drawn increased scrutiny to the issues around online- and network-based targeted advertising.