Effective online business means gathering data; consumers are understandably reluctant to share data, fearing it will be used against them. A great way for digital advertisers and marketers to avoid regulation is for the industry to proactively regulate itself, and to empower consumers and users with control over their own data. And that's happening.
The Federal Trade Commission (FTC) issued a data privacy report with recommendations in December 2010 with specific recommendations. The Digital Advertising Alliance (DAA) responded with self-regulation principles and a recommended accountability mechanism.
Who is the DAA?
The DAA comprises these heavyweight digital advertising/marketing organizations:
- the American Association of Advertising Agencies (4A’s)
- the American Advertising Federation (AAF)
- the Association of National Advertisers (ANA)
- the Direct Marketing Association (DMA)
- the Interactive Advertising Bureau (IAB)
- the Network Advertising Initiative (NAI)
Online Behavioral Advertising Principles
The Education Principle calls for organizations to participate in efforts to educate individuals and businesses about online behavioral advertising and the Principles. Example: This blog post.
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. Example: Privacy policy links located on data gathering forms.
The Consumer Control Principle to provide consumers with 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. Internet Service providers (including Internet access service providers and providers of desktop applications software such as Web browser toolbars) must 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 appropriate security for, and limited retention of data, collected and used for online behavioral advertising purposes. Example: Processes to control access to and expunge consumer data.
The Material Changes Principle calls for obtaining consumer consent before a Material Change is made to an entity's Online Behavioral Advertising data collection and use policies unless that change will result in less collection or use of data. Example: Pushing notifications of privacy policies or terms of use - rather than simply posting updates passively.
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.
Multi-Site Data Principles
Last week, the Digital Advertising Alliance (DAA) announced “Principles for Multi-Site Data” - specifically governing data gathered on one site used by another site or organization.
The Multi-Site Principles call for self-regulation and accuntability codify existing industry practices prohibiting the collection or use of Multi-Site Data for the purpose of any adverse determination concerning employment, credit, health treatment or insurance eligibility. Like the OBA Principles, the Multi-Site Data Principles provide specific protections for sensitive data concerning children, health and financial data.
Transparency and consumer control for purposes other than OBA. The Multi-Site Data Principles call for organizations that collect Multi-Site Data for purposes other than OBA to provide transparency and control regarding Internet surfing across unrelated Websites.Collection / use of data for eligibility determination – The Multi-Site Data Principles prohibit the collection, use or transfer of Internet surfing data across Websites for determination of a consumer’s eligibility for employment, credit standing, healthcare treatment and insurance.
Collection / use of children’s data. The Multi-Site Data Principles state that organizations must comply with the Children’s Online Privacy Protection Act (COPPA).
Meaningful accountability. The Multi-Site Data Principles are subject to enforcement through strong accountability mechanisms.
See the full Multi-Site Data Principles document for more info.