The Senate’s Committee on Homeland Security, Permanent Subcommittee on Investigations recently released a report on malvertisements, entitled “Online Advertising and Hidden Hazards to Consumer Security and Data Privacy.” The report, which was released in conjunction with a May 15, 2014, hearing, states the Committee’s view that current regulations do not go far enough to address and prevent hidden malware. Although the report trumpets some of the Federal Trade Commission’s enforcement actions under existing consumer protection laws, the report also acknowledges Congress’s unsuccessful attempts to pass a comprehensive data security bill. In the absence of targeted legislation, the FTC may promulgate additional rules regulating malvertisements. Any new rules will likely go beyond providing consumers with formal notice of the risks of malvertising, and may extend to measures such as uniform consumer education programs and the provision of meaningful recourse for victims.
The size of the online advertising industry (exceeding $40 billion in annual revenue according to some estimates), ensures that prevention of malvertising will be a hot topic at the FTC for the foreseeable future.