DoubleClick to Pay Privacy Settlement

To ward off an investigation into its privacy practices, online ad provider DoubleClick Inc. agreed to adhere to stiff privacy restrictions--and to pay a $450,000 settlement.

The 30-month investigation by attorneys general from 10 states including California examined DoubleClick’s practices of gathering Web users’ personal information and surfing habits.

The New York-based company, which sells its services to advertisers and major Internet sites, deposited unique “cookie” files on a user’s computer that tracked the machine’s online travels, allowing the company to display Web ads tailored to a person’s shopping and surfing preferences.

Under the settlement, DoubleClick will adopt privacy-related restrictions that include giving consumers access to their online profiles, verifying its compliance with the agreement and paying $450,000 for states’ investigative costs and consumer education.

Privacy advocates said the settlement pries open the murky business of online advertising while serving as a precedent for other advertisers who want to avoid similar investigations.

“These rules go beyond normal U.S. Internet privacy practices into strong privacy,” said Ari Schwartz of the Center for Democracy and Technology in Washington. “This sends a message to other companies that are into advertising online. These are rules they’ll have to take into account.”

DoubleClick shares gained 11 cents, to $6.15, in Nasdaq trading.