The Federal Trade Commission has issued a report outlining self-regulatory guidelines for the online advertising industry.

“This is the industry’s last chance to get self-regulation right,” said Leslie Harris, President and CEO of the Center for Democracy & Technology. “The FTC report makes clear that the industry’s own efforts in this area have fallen short and must do more.”

The report discusses the potential benefits of behavioral advertising to consumers, including the free online content that is ad supported. It also discusses the privacy concerns surrounding behavioral advertising.

The FTC’s overall approach to consumer privacy seeks to balance the potential benefits of behavioral advertising while encouraging privacy protections and maintaining a competitive marketplace.

Because privacy policies posted on company Web sites are often long and difficult to understand, the report encourages firms to create effective disclosure information that is separate from their privacy policies.

The report calls on companies to provide reasonable security for any data they collect for behavioral advertising and to keep data only as long as it is needed to fulfill business or law enforcement needs.

The FTC said significant work remains and that it will continue the public dialogue regarding privacy issues raised by behavioral advertising. In the coming year it will evaluate self-regulatory programs and conduct investigations if needed, to determine any violations.