Even though the US Federal Trade Commission's February 12 guidelines, centering on targeted advertising that follows the activities of consumers online, are a stride towards protection of privacy, consumer advocacy groups believe they are inadequate, and a regulation is needed.

With the new principles essentially being a modification of the agency's December 2007 proposals, Jeffrey Chester, founder of Center for Digital Democracy, based in Washington, said that the FTC "should have told Congress it's time to act and create legislative safeguards."

The guidelines, aimed at making consumers aware about how advertisers make use of their Web surfing habits data, require that every site practicing behavioral targeting should clarify all related aspects, to provide consumers the facility of opting out.

It is being recommended that sites should retain collected data "as long as is necessary to fulfill a legitimate business or law enforcement need," and should notify users of changes made to privacy policies. Furthermore, sensitive personal data - like financial and health records - should be collected only in cases where the user opts in.

Even FTC officials opine that a push for stricter legislation might follow sooner or later. According to FTC Commissioner Jon Leibowitz, in case the industry fails to stick to the newly-announced standards on its own, it would necessitate "legislation by Congress and a more regulatory approach by the commission."