Principles On Collection And Use Of Behavioural Advertising Data Are Released

by Glen Shapiro, LawAndTax-News.com, New York

13 July 2009

The largest media and marketing trade associations in the USA have released self-regulatory principles to protect consumer privacy in ad-supported interactive media that will require advertisers and websites to inform consumers about data collection practices and enable them to exercise control over that information.

The development of these Principles was in direct response to calls by the Federal Trade Commission to develop more robust and effective self-regulation of online behavioural based advertising practices that would foster transparency, knowledge and choice for consumers.

The principles are designed to address consumer concerns about the use of personal information and interest based advertising while preserving the advertising, that supports the vast array of free online content, and the ability to deliver relevant advertising to consumers. This self-regulatory program consists of the following seven Principles:

• The Education Principle calls for organizations to participate in efforts to educate individuals and businesses about online behavioural advertising. To this end, the digital media industry intends, in a major campaign that is expected to exceed 500 million online advertising impressions, to educate consumers about online behavioral advertising, the benefits of these practices and the means to exercise choice, over the next 18 months.
• The Transparency Principle calls for clearer and easily accessible disclosures to consumers about data collection and use practices associated with online behavioral advertising. It will result in new, enhanced notice on the page where data is collected through links embedded in or around advertisements, or on the Web page itself.
• The Consumer Control Principle provides consumers with an expanded ability to choose whether data is collected and used for online behavioral advertising purposes. This choice will be available through a link from the notice provided on the Web page where data is collected.
• The Consumer Control Principle requires “service providers”, a term that includes Internet access service providers and providers of desktop applications software such as Web browser “tool bars” to obtain the consent of users before engaging in online behavioral advertising, and take steps to de-identify the data used for such purposes.
• The Data Security Principle calls for organizations to provide reasonable security for, and limited retention of data, collected and used for online behavioral advertising purposes.
• The Material Changes Principle calls on organizations to obtain consent for any material change to their online behavioral advertising data collection and use policies and practices to data collected prior to such change.
• The Sensitive Data Principle recognizes that data collected from children and used for online behavioral advertising merits heightened protection, and requires parental consent for behavioral advertising to consumers known to be under 13 on child-directed Web sites. This Principle also provides heightened protections to certain health and financial data when attributable to a specific individual.
• The Accountability Principle calls for development of programs to further advance these Principles, including programs to monitor and report instances of uncorrected non-compliance with these Principles to appropriate government agencies. The CBBB and DMA have been asked and agreed to work cooperatively to establish accountability mechanisms under the Principles.

This self-regulatory program is expected to be implemented at the beginning of 2010.

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