Thursday, July 2, 2009

Groups Release Web Ad Principles

Several major marketing trade groups will release self-regulatory principles Thursday intended to protect consumer privacy in advertising-supported interactive media. The groups argue the guidelines will require advertisers and Web sites to clearly inform consumers about data collection practices and enable them to exercise control over that information. The issue has gained steam on Capitol Hill lately with a series of hearings by key panels of the House Energy and Commerce Committee. The framework is an effort of the American Association of Advertising Agencies, the Association of National Advertisers, the Direct Marketing Association, the Interactive Advertising Bureau, and the Council of Better Business Bureaus. The groups offer seven principles as part of a self-regulatory program that is expected to be implemented in early 2010. Here are the basics:

• The Education Principle: The digital media industry intends, in a major campaign that is expected to exceed 500 million online ad impressions, to educate consumers about online behavioral advertising over the next 18 months.

• The Transparency Principle: Clearer and easily accessible disclosures to consumers about data collection and use practices associated with online behavioral advertising. It will result in enhanced notice practices.

• The Consumer Control Principle: Expanded ability for consumers to choose whether data is collected and used for behavioral advertising through a link from the notice provided on the Web page where data is collected.

• The Consumer Control Principle: Requires service providers to obtain the consent of users before engaging in behavioral advertising and take steps to de-identify data used.

• The Data Security Principle: Calls for organizations to provide reasonable security for, and limited retention of data, collected and used for behavioral advertising purposes.

• The Material Changes Principle: Calls on organizations to obtain consent for any material change to their behavioral advertising data collection and use policies.

• The Sensitive Data Principle: Requires parental consent for behavioral advertising to consumers known to be under 13 on child-directed Web sites as well as heightened protections to certain health and financial data.

• The Accountability Principle: Calls for development of programs to further advance the principles, including programs to monitor and report instances of uncorrected non-compliance.