If Google and others fail to fix privacy issues, the government will do it

On Monday the head of the U.S. Federal Trade Commission said that Internet companies tracking consumer behavior on the web for targeted advertising without users’ consent are near their last chance to self regulate, reports the Reuters.

Privacy advocates claim that the regulation of big phone and Internet companies, such as AT&T Inc and Google Inc, is insufficient as the companies feel themselves quite free to control over consumers’ personal information. "From my perspective, the industry is pretty close to its last clear chance to demonstrate" that it can police itself, said FTC Chairman Jon Leibowitz.

Companies should follow the new guidance of the FTC that was released earlier this year. The guidance instructs the Internet companies to inform their users that their data is being collected during their searches and that they can opt out. In case these firms fail to make their privacy policies more understandable to online surfers, authorities will assume more regulatory power on themselves.