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IAB to Congress: SPY Act Hinders E-Commerce, Info Flow

The Interactive Advertising Bureau yesterday urged Congress to protect consumers' access to information and entertainment online and be wary of interest-group pressure to pass what IAB termed ill-considered "spyware" legislation.

The IAB said the legislation would hinder internet commerce and the free exchange of information. It was among several organizations testifying at the U.S. House of Representatives Subcommittee on Commerce, Trade, and Consumer Protection legislative hearing on H.R. 964, the Securely Protect Yourself Against Cyber Trespass Act (SPY Act).

Dave Morgan, founder and chairman of Tacoda and chairman of the IAB Public Policy Council, told House members that the proposed "spyware" legislation could curtail consumer choice and hinder the growth of advertising, which is becoming one of the internet's economic underpinnings.

"Spyware is both bad for consumers and the industry," he said. "Not only can it infect consumer's machines with malicious software and potentially remove consumers' ability to exercise choice on their computers, but equally as concerning, is its ability to erode consumer confidence and undermine valid online advertising models."

Lauding Congress's desire to protect Americans' privacy and choice, Morgan warned that "there is always a risk that legislation that governs complicated technology could result in limiting and/or stifling innovation."

"We want to ensure that the availability of free content online continues to grow and that consumers receive the richest, most relevant Internet experience, without unduly burdening the advertising engine that makes these websites run."

Randall Rothenberg, President and CEO of IAB, said the legislation, "while well intended, deserves a fresh look by this new Congress. As digital media consumption grows, the industry is increasingly responsive to consumers, and devoted to protecting their privacy, while delivering new, innovative services that improve their lives."

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