·The collection of sensitive data, such as medical records, for behavioral advertising. Companies should only collect sensitive data for behavioral advertising if they obtain consent from the consumer. Regarding this concern, the FTC also sought comment on what constitutes "sensitive data" and whether its use should be prohibited, rather than subjected to consumer choice.

In spelling out its proposal in a statement, the FTC says its staff "was mindful of the need to maintain vigorous competition in online advertising as well as the importance of accommodating the wide variety of business models that exist in this area." The proposal acknowledges "that behavioral advertising provides benefits to consumers in the form of free content and personalized advertising."

Shop.org, the online division of the National Retail Federation, contends that the FTC's use of the term behavioral advertising is too broadly defined and urges the FTC to "move slowly." Shop.org agrees that the practice provides a variety of benefits but also contends that it "isn't harmful and isn't as widely opposed as critics claim."

"Retailers have long understood that keeping their customers happy is the most essential part of building positive, long-term business relationships," says Scott Silverman, Shop.org's executive director, in a statement. "The FTC's proposed guidelines could have the effect of undoing many online retail best practices and innovations that customers inherently value."

Silverman also contends that although the principles are intended to be self-regulatory, they "likely will be viewed by the business community not as mere suggestions, but truly regulatory in nature, with perceived violations being considered 'unfair and deceptive' under the Fair Trade Commission Act."

The organization urges the FTC to conduct a study outlining "any consumer harm from behavioral advertising and any specific deficiencies in existing industry practices." It calls for a "complete record," and charges that the FTC report "seems to sweep in a wide array of privacy issues that go well beyond simply moving forward a discussion about self-regulation of online advertising practices."

Shop.org acknowledges that critics portray consumers as opposing email marketing. Yet it estimates that just 6% of retail consumers opted out of marketing emails in 2007. Consumers aren't complaining, the critics say, because they are not aware of the extent of online data gathering.