Today, Microsoft Corp. proposed a new structure for self-regulation of online advertising, submitting to the Federal Trade Commission a proposal for a five-tiered system to protect consumers’ privacy. Microsoft’s recommendations call for distinct privacy standards in five key circumstances: when site visitors’ data is collected for online advertising, when ads are delivered on unrelated sites, when sites engage in behavioral advertising, when personally identifiable information is used, and when sensitive personal data is used.

The foundation of Microsoft’s approach is the idea that the greater the potential risk to privacy, the greater the protection. For example, the most stringent tier requires that online advertisers receive affirmative express consent from consumers before they may use sensitive personally identifiable information — such as personal health information — for advertising purposes.

Today’s filing was submitted in response to the FTC’s request for comments on its own proposed self-regulatory principles to govern online advertising. In its comments, Microsoft commended the FTC for its ongoing efforts to protect consumer privacy and recommended that the agency broaden its focus to tackle the full array of online behavioral advertising practices, many of which are unfamiliar to consumers.