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June 24, 2008 10:00 PM PDT

Charter drops controversial customer tracking plan

Internet service provider Charter Communications announced Tuesday that it was indefinitely suspending the use of a controversial tool to track its customers' movement on the Web.

Charter, the fourth-largest cable operator in the U.S., announced in May that it would use technology from a company called NebuAd to monitor some of its broadband customers' Internet habits to provide advertisers with information to target online ads to individual customers. Privacy advocates had likened the service to Internet wiretapping.

"Our customers are always our first priority," Charter said a statement. "As such, we are not moving forward with the pilots at this time. We will continue to take a thoughtful, deliberate approach with the goal to ultimately structure an advertising service that enhances the Internet experience for our customers and addresses questions and concerns they've raised."

Charter's plans had also raised the attention of prominent members of Congress, including Massachusetts Democrat Edward J. Markey, who chairs the House Subcommittee on Telecommunications and the Internet. Shortly after Charter's announcement, Markey released a statement praising the decision to suspend the program but questioning whether it violated the law:

Given the serious privacy concerns raised by the sophisticated ad-serving technology Charter Communications planned to test market, I am pleased to hear that the company has decided to delay implementation of this program, which electronically profiled individual consumer Web usage. I urge other broadband companies considering similar user profiling programs to similarly hold off on implementation while these important privacy concerns can be addressed.

The move comes as targeted Web advertising efforts ramp up. Earlier Tuesday, Google announced a tool called Ad Planner that lets advertisers find Web sites whose visitors match various demographic attributes. The tool, which competes with market leaders ComScore and Nielsen Online, also can show in detail how many people visit a particular Web site.

Steven Musil is the night news editor at CNET News. E-mail Steven.
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Add a Comment (Log in or register) 4 comments
by partytildawn June 25, 2008 1:17 AM PDT
So, now, instead of publicly discussing their use of the NebuAd monitoring system, they will continue to use it, but they won't discuss it privately.
Reply to this comment
by jamalystic June 25, 2008 7:28 AM PDT
Although this is a welcome move , it still does not guarantee that such measure would not be conducted unawares to concumers. As the article below pointed out, the only way we can have a durable internet transparency is to have a new business model where the consumer owns the last mile and is free to connect to any service provider he or she wishes at a neighbourhood, carrier-neutral interconnect facility: Improving Internet Transparency ( http://www.internetevolution.com/author.asp?section_id=506&doc_id=154745&F_src=flftwo)
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by studiodave56 June 25, 2008 12:49 PM PDT
Improve with better advertising? How about improve with no advertising? I skip commercials on TV now I have to do it on the internet too.
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by zclayton2 June 26, 2008 9:01 AM PDT
Oh please, all the slime mongers on capitol hill want to do is figure out how to do this for DHS. And they don't want a public version out for researchers to look at for a way to immunize our systems against this new malware.
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