Advertising experts see new legislation as bad for industry

Interactive Advertising Bureau Vice President of Public Policy Mike Zaneis will testify before Congress regarding a pair of bills currently circulating Capitol Hill, which would limit the advertising industry. The laws attempt to regulate the use of newly available consumer information found on the web as a result of expanding communication, social media and other factors in the name of privacy.

While limiting advertising activity may seem like a good thing in the eyes of consumers, it may adversely impact the fragile U.S. economy. An IAB study found advertising accounts for $300 million of economic activity every year aside from the money spent by consumers as a result of the advertisements they see.

“The interactive advertising industry has a long and successful history of protecting consumers’ privacy rights through effective self-regulation,” said Zaneis. “Given the free content and services that consumers enjoy because of advertising revenue, it is imperative that any new laws be carefully tailored.”

The advertising industry has evaded much regulation from the U.S. government in the past, and IAB, among other industry leaders, has proposed a form of self-regulation in response to the proposals currently under consideration.