Digital Ad Alliance: Will it Fool FTC and Place Privacy Further at Risk?

The US Federal Trade Commission is placing the privacy of Americans in danger if it continues to accept the deeply flawed Digital Advertising Alliance "icon" scheme.  Yesterday, the DAA's campaign to fight off reasonable privacy regulation continued through its release of a document covering "Multi-Site" data.  Some people at the FTC thought this is an important step because it moves beyond behavioral targeting to include other data.  Their reaction--and the agency's overall support for the DAA--illustrates how out of touch the FTC is when it comes to online marketing and data collection.  Behavioral targeting data is just one part of a multi-dimensional and integrated--and dramatically expanding--data collection, profiling, and targeting system.  This new document merely echos the same inadeqate regime that will fail to protect privacy--and will lead to more formal complaints filed at the FTC, brought to the attention of EU regulators, and other advocacy venues.
The DAA should be ashamed for once again failing to protect US consumers about their most sensitive data uses, including finance, health, and personal family matters.  Anyone who understands the online ad system knows that data collection and targeting operate in a way that will allow digital marketers to impact our finances, health concerns, our children (teens) and other sensitive matters.  Another glaring default is the failure to include first party data.  Today, first and third party data is commonly exchanged and used for targeting in milliseconds; there should be no distinctions between so-called first and third parties when it comes to our privacy.
There are so many other loopholes in the new DAA document that it would take billions of the tiny graphical icons to fill--including exemptions for intellectual property concerns, data modeling, data management companies, etc.  The FTC will begin losing the support of consumer groups and the confidence of the public if it doesn't stand up for the privacy rights of the American public.