DoubleClick is in talks with the US states investigating the company for alleged privacy violation.

According to a CNET story, Internet advertizing company DoubleClick is in discussions with Michigan, New York, Connecticut, and Vermont about a possible settlement. The story quotes Michigan's Attorney General Jennifer Granholm as the source.

DoubleClick drew criticism from privacy groups because of plans to collect information on consumer's Web surfing habits and user names, and sell it on. The uproar prompted an investigation from the Federal Trade Commission and several US states.

The CEO of DoubleClick Kevin O'Connor released a statement earlier this month. In it, he said the company would hold off on its controversial plans until an agreement on privacy standards had been reached between the government and the industry. Jennifer Granholm told CNET that DoubleClick executives "have been positive in agreeing to come to the table. They have been making all the right statements about co-operating."

She went on to say that both sides are drafting a proposal for "an Internet protocol that will address the privacy concerns".