Among other things, advertisers and Web sites will be required to clearly inform consumers about the data-collection practices they use. The new guidelines also will enable online users to exercise control over their personal information.

"This historic collaboration represents businesses and trade associations working together to advance the public interest," said Interactive Advertising Bureau CEO Randall Rothenberg. "We are acting early and aggressively on their concerns, to reinforce their trust in this vital medium that contributes so significantly to the U.S. economy."

Changing the Status Quo

The new set of principles represents the behavioral advertising industry's direct response to mounting criticism from members of Congress and the Federal Trade Commission. Earlier this year, FTC Chairman Jon Leibowitz warned the industry that it needed to do a better job of delivering meaningful, rigorous self-regulation.

"Put simply, this could be the last clear chance to show that self-regulation can -- and will -- effectively protect consumers' privacy in a dynamic online marketplace," Leibowitz said.

Self-regulation, if it works, can be the fastest and best way to change the status quo, Leibowitz noted. "If there isn't an appropriately vigorous response, my sense is that Congress and the commission may move toward a more regulatory model," Leibowitz said.