1. Online Marketing: Industry Innovation and Government Enforcement Actions Privacy Symposium Wednesday, August 22, 2007 Christine Varney Partner, Hogan & Hartson, LLP

2. 2 Recent FTC Enforcement Actions Relating to Online Marketing Xanga  Social networking site alleged to have collected, used, and disclosed PII belonging to 1.7 million children under 13 in violation of COPPA.  Site marketed and sold banner advertisement space based on the PII.  $1 million penalty is largest civil penalty for violation of COPPA rule to date. Zango  Third party affiliates alleged to have downloaded Zango’s ad delivery software without sufficient notice and consent.  Settlement provides clear guidelines for identifying advertisements served by advertising software and for obtaining informed consent prior to downloading software applications.

3. 3 Recent NYAG Enforcement Actions Relating to Online Marketing Gratis  Allegedly sold 7 million files in violation of the Gratis privacy policy; judge found Gratis engaged in deceptive practices for NY residents; damages pending. Priceline.com, Travelocity.com, Cingular Wireless  Placed online advertisements that were delivered using third party’s (Direct Revenue’s) adware that was allegedly downloaded without consumers’ full notice and consent.  Under settlement, advertisers may only deliver online ads through adware companies that, inter alia, provide full disclosure of applicable adware program and bundled software.  Direct Revenue (still pending): alleged to have deceptively installed its adware program onto millions of computers.

4. 4 Innovative Marketing Custom messaging using RFID technology Jeff!! Happy Birthday Source: www.miniusa.com MINI Cooper

5. 5 Innovative Marketing Information about your contacts, family, travel plans, health conditions, shopping habits, and more collected and combined for future ad delivery Source: www.google.com Start Finish

6. 6  Current location and travel plans  Time, date, and location of your engagements including dinner plans, doctor visits, meetings  Home address  Packages you are expecting  Religious beliefs  Political affiliation  Personal and business contact information  Personal or work web pages  Professional interests  Education  News stories and topics of interest  Music and movie preferences  Hobbies  Shopping habits  Investment plans and your investment portfolio  Major life events such as weddings, birth announcements, and the purchase/sale of a home  Health issues and concerns  Prescription medications  Culinary preferences  Psychological stresses and concerns  Words you do not know the meaning of  Possible exposure of your online communications  Possible exposure of your computer’s stored data Types of Information Potentially Used In Innovative Marketing

7. 7 GOVERNMENT ACTION?