ABSTRACT

Targeted digital advertising has grown rapidly and become increasingly sophisticated. The internet allows the collection, aggregation, and synthesis of clickstream data; purchase behavior; to deliver advertisements tailored to previous online behavior. This chapter begins with a short discussion of privacy and digital advertising. It highlights the literature on consumer concerns versus their actual behaviors online. The integrity of consumer data privacy remains an important topic upon which regulators and scholars routinely discuss and debate as more information is collected about consumer behavior via better analytics and emerging technologies. The discussion involves balancing consumer privacy expectations against the interests of the market. The Federal Trade Commission (FTC), in its regulatory role, works to ensure consumer control over data. The FTC began its foray into privacy protection in the 1990s when it started enforcing companies' existing privacy policies in the interest of preventing unfair or deceptive acts that affect commerce.