Update: DoubleClick Agrees to Regulate Use of Consumer Data

Updated from 4:31 p.m. EDT

Shares of DoubleClick(DCLK Quote), Engage Technologies (ENGA Quote) and 24/7 Media Inc.(TFSM Quote) rose Friday after those companies and other Internet advertisers agreed to regulate the personal information they collect about Web consumers.

The news revived -- at least temporarily -- stocks that have drooped in recent months. Shares of New York-based DoubleClick rose 2 13/16, or 8.3%, closing finally at 36 7/8 in Nasdaq trading, while Engage added 1 5/32, or 12.5%, to 10 7/16. Mirroring its peers, 24/7 Media shot up 13/16, or 7.3%, to 11 15/16.

The deal, worked out between the Network Advertising Initiative and the Federal Trade Commission on Thursday, is aimed at giving Web users a say in how their personal data is used by online marketing firms.

From now on, under the agreement, Web users will be informed about advertisers' efforts to profile potential consumers and will be able to decide whether they want to participate. In addition, anonymous information previously gleaned from consumers cannot be linked to "personally identifiable data" without a user's permission.

The commission, however, said it still sought federal legislation that would protect consumers' privacy during online profiling. The advertisers, meanwhile, agreed to put their self-policing policy into effect right away.

The Network Advertising Initiative comprises about 90% of the Internet-advertising industry, including DoubleClick, Engage and 24/7 Media. Brad Eichler of Stephens Inc. upgraded DoubleClick shares on Friday to buy from market perform.