FTC, Chitika Settle Probe Over Ad Targeting Glitch

Law360, New York (March 15, 2011, 4:47 PM EDT) -- The Federal Trade Commission reached a settlement Monday in an enforcement action against online advertising network Chitika Inc., sanctioning the company for tracking the online activities of consumers who asked not to receive targeted ads.

The FTC accused Chitika of operating a deceptive opt-out mechanism that only allowed Internet users to prevent the company from tracking them for 10 days at a time, after which Chitika would resume tracking and targeting.

Consumers who sought to block the company’s tracking process were forced to opt out repeatedly,...
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