Lawmakers concerned over Charter's Web tracking

Online ad firm NebuAd is partnering with St. Louis-based Charter to do the tracking. Charter, the nation's fourth-largest cable TV company, is controlled by Microsoft co-founder Paul Allen.

NebuAd, based in Redwood City, Calif., wouldn't say last year how many carriers or advertisers it works with, though CEO Bob Dykes said Internet providers representing millions of customers run NebuAd's system to gather information and get a share of the revenue from advertising that NebuAd places.

NebuAd said then that some of the largest ISPs were testing the service.

NebuAd confirmed Friday that it is partnering with Charter but declined further comment.

Markey, chairman of the House Subcommittee on Telecommunications and the Internet, is concerned about Charter's subscribers' privacy.

Collecting data about the Web habits of subscribers without their prior consent is "raises substantial questions related to Section 631" of the Communications Act, he wrote in a letter to Smit.

The section of the law Markey cited includes privacy provisions for cable operators.

Charter has always taken an "open approach" with its customers, the company said in a statement Friday.

"Our goal is to bring an enhanced Internet experience to our customer while meeting all privacy protection requirements," the company said. "We believe we have done that but are pleased to discuss this matter with the Chairman and the Congressman."

On its Web site, Charter says it will not track -or display ads related to -confidential medical information; racial or ethnic origin; religious beliefs or sexual content. And it will not direct ads at children under 13, according to a FAQs page on Charter's Web site.