Principles based on an ongoing examination of the consumer issues raised by behavioral advertising and the public discussion of these issues at the ftcs november 2007 ehavioral advertising town hall. Behavioural advertising the path to regulation and compliance. Trends and developments enforcement actions brought by the ftc under section 5 of the ftc act, which prohibits unfair and deceptive acts and practices 15 u. Canadian internet policy a 1 nd public interest clinic. Ftc to focus on selfregulation by behavioral advertising. Feb 12, 2009 in the ftcs 48page staff report on behavioral advertising pdf, the commission includes a set of four revised principles, which are currently nonbinding. While the ftc s definition of behavioural advertising is very broad, it has allowed the ftc to learn a lot. The selfregulatory principles ftc principles in the oba report. According to the ftcs complaint against chitika, inc. Ftc releases report on online behavioral advertising principles. Selfregulatory principles for online behavioral advertising 1 feb. The ftc examined similar issues in 2000, when it held a workshop jointly with the. Compliance with online behavioral advertising notice and choice.
The federal trade commission ftc has revised its guidance on online advertising disclosures, known as the dotcom disclosure guidelines. Also, commenters questioned the need to apply the principles to 1 first party behavioral advertising, in which a web site collects consumer information to deliver targeted advertising at its site, but does not share any of that information with third parties, and 2 contextual advertising, which targets advertisements based on the web. Federal trade commission ftc issued a report urging businesses participating in online behavioural advertising oba to follow four principles in order to protect consumers privacy when engaging in online behavioural advertising. Ftc online behavioral advertising privacy principles. The relevancy of this study, according to laoutaris, is that researchers can test whether an. The united states federal trade commission ftc has been involved in oversight of the behavioral targeting techniques used by online advertisers since the mid1990s. Profiling the mobile customer privacy concerns when. Ftc takes a bite out of cookiebased behavioral advertising on march 14, 2011, the federal trade commission ftc announced a settlement with a. Personally identifiable information pii this is information that, either by itself or in conjunction with other information, can uniquely identify an individual. Ftc staff revises online behavioral advertising principles. Against this backdrop, the federal trade commission ftc has proposed certain principles to, according to the ftc, address the need for greater transparency and consumer control regarding privacy issues raised by behavioral advertising.
Ftc takes a bite out of cookiebased behavioral advertising. This paper is a lawyers look at online behavioural advertising from a consumer perspective. This sminfopak gives a highlevel overview of data protection rules and principles, including obligations on the data controller and the consent of data subjects. In response to the ftcs draft principles, in late 2008, the network advertising initiative, a coalition of more than 90. The ftc behavioral advertising town hall showcased many new approaches, both self. Ftcs deception policy statement of 1983 limits the range of advertising regarded as legally deceptive by adding a materiality condition. First, the easa recommendation fails to recognize the protection of consumer privacy in online behavioral advertising oba as a key policy goal. Us advertising industry advertises selfregulatory principles for online behavioural advertising written osborne clarke on 03 aug 2009 the five main advertising associations in the usa, backed by a number of leading multinational companies, have published selfregulatory principles for online behavioural advertising. The united states federal trade commission ftc has been involved in oversight of the. Jun 10, 2015 in this first issue, we take a look at some topical issues in advertising and at the digital economy in particular. Based on the principles of oba, as outlined by the digital advertising. In the ftcs 48page staff report on behavioral advertising pdf, the commission includes a set of four revised principles, which are currently nonbinding. Behavioural advertising the path to regulation and compliance the existence of several high profile settlements involving the us federal trade commission and various organisations involved in deceptive advertising techniques online has shown that online behavioural advertising has become a communication vehicule of choice. Under the ftcs 2000 proposal, all online advertising networks and consumeroriented commercial websites that allowed the collection of information from or about consumers would be required to implement and comply with the fipps.
Business ethics is the behaviour that a business adheres to in its daily dealings with the world. Us enforcement feature whats driving the us antitrust agencies. Ftc staff issues proposed self regulatory principles for. Whereas the 2000 guidelines dealt largely with disclosures made on traditional websites and on blogs, the new version addresses use of disclosures in social media and on mobile devices. A press release and brief analysis from the center for democracy and technology regarding the ftcs announcement. The ftc has issued a staff report revising its selfregulatory principles for online behavioral advertising. The following points are discussed in more detail below. Consumer financial protection bureau behavioral economics.
Regulatory principles for online behavioral advertising. A guide for businesses provides a helpful discussion on the subject, with some useful examples, and it is suggested that the overriding principles addressed in the ftc guidance are relevant considerations under canadas misleading advertising laws as well. The opportunities to conduct targeted or behavioral online advertising have expanded greatly in recent years due to developments in online technologies and the way that people use them. The representatives of iab europe and easa, european advertising and marketing industry associations, met with the article 29 working party, a group of european data protection authorities, on 14 september 2011 to discuss the industrys selfregulatory code on online behavioural advertising. This article first describes the practice and technology of behavioral. Selfregulation principles for online behavioral advertising from 2009. Updated ftc guidance on endorsements and testimonials in. The study has focused on finding out if there are any traces of the theories and models in the. Learn vocabulary, terms, and more with flashcards, games, and other study tools. While the ftcs definition of behavioural advertising is very broad, it has allowed the ftc to learn a lot. Transparency and consumer control should be separate principles. The central ways it does this is by regulating the advertising industry, and bringing enforcement actions. Although the ftc has not undertaken any investigations of facebook, the social networking website has been invited to comment on several of the ftc. The cdd, in partnership at different times and in different contexts with epic and uspirg, has helped spark ftc action.
The ftc held a behavioral advertising town hall in november 2007. Behavioural advertising the path to regulation and. Would that endorsement factor into your decision to buy the product. This has been done to see to how the use of these models has been apprehended by the customers. In other word, we can say that ethics are moral principles and values that govern the actions and decisions of an individual group. The federal trade commission ftc, which was created in 1914, is tasked with promoting consumer protection by combatting unfair and deceptive acts or practices. Todays report, titled selfregulatory principles for online behavioral advertising, summarizes and responds to the main issues raised by more than 60 comments received. Suppose you meet someone who tells you about a great new product. Compliance with online behavioral advertising notice. Us advertising industry advertises selfregulatory principles. Moving the discussion forward to possible selfregulatory principles follows from the ftcs town hall meeting held in early november 2007. Decisions in the us come largely from the federal trade commission, a us regulatory 7 network advertising initiative naiproviding voluntary standards for companies to. Us enforcement feature whats driving the us antitrust. The report takes into consideration the sixtythree comments the commission received from various stakeholders, including the advertising industry, and provides further guidance as to the applicability and scope of the.
Lindsey tonsager helps national and multinational clients in a broad range of industries anticipate and effectively evaluate legal and reputational risks under federal and state data privacy and communications laws. Bergert abstract behavioral targeting is the emerging practice of collecting information about consumers behavior and using that information to customize an advertisement or other service for the consumer. Selfregulation for online behavioral advertising oba. Ftc issues new guidance for advertising and marketing in. Ftc regulation of behavioral advertising wikipedia. The settlement also signals that the ftc has begun to act on its repeated warnings about scrutinizing behavioral advertising more closely. Nikolaos laoutaris, research professor at imdea networks, has published new research results on the detection of behavioural targeting in online advertising. For example, the november 2006 cdduspirg petition on behavioral advertising reignited the ftc s interest in the issue of privacy and online marketing. According to the ftc, behavioral advertising is the practice of tracking an individuals online activities in order to deliver advertising tailored to his or her interests. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
Behavioral advertising is the practice of tracking an individuals online activities in order to deliver advertising tailored to his or her interests. Jul 03, 2018 effective september 1, 2015, the digital advertising alliance daa is now enforcing its selfregulatory principles for online behavioral advertising and multisite data collectively, the principles in the mobile ecosystem. It refers to ones moral character and the way in which society expects people to behave in accordance with accepted principles. How to make effective disclosures in digital advertising, not only reaffirms many of the ftcs longstanding principles for effective online disclosures, but also provides guidance as to how those principles will be applied to new technologies that have emerged since 2000, such as mobile phones and. Ftc to focus on selfregulation by behavioral advertising industry.
Cippic urges the ftc to characterize these principles as minimum protections, above which companies are encouraged to go. Ftc revises online advertising disclosure guidelines. Ftc issues behavioral advertising guidelines cipp guide. There, ftc considered privacy issues raised by behavioral advertising and heard from consumer interest groups and businesses alike.
These principles, described in the pdf, correspond with the selfregulatory principles for online behavioral advertising proposed by the. She cochairs the firms artificial intelligence initiative. Balancing consumer privacy with behavioral targeting. Codes or principles of selfregulation for behavioral advertising will also be considered. On october 19, 2010, federal trade commissioner julie brill indicated that the ftcs forthcoming behavioral advertising report will recommend a selfregulatory framework, as opposed to new legislation, to help protect consumers privacy. The federal trade commission ftc updated its online advertising disclosure guidelines to advise advertisers on how to make clear and conspicuous disclosures on mobile and social media platforms. The digital advertising alliance daa, a consortium of the nations largest media and marketing associations that has established selfregulatory standards for online behavioral advertising, announced on october that the council of better business bureaus and the direct marketing association will begin enforcement of the application of the daa principles of transparency and control to. The principles also cover mobile advertising and situations where data is collected for behavioural targeting. Food product advertising and labels cannot include misleading information. Jun 02, 2015 recognizing the popularity of this promotional vehicle, and the questions that arise when traditional truthin advertising principles are applied to new media formats, the ftc revised its endorsement guides in 2009, and followed up in 2010 with explanatory faqs and other guidance about endorsements, testimonials and disclosure requirements in. Updated ftc guidance on endorsements and testimonials in social media advertising does your advertising pass muster. Another section of this web site discusses product claims in detail as well as the labeling of product claims. The ftcs web site provides free information on a variety of consumer topics. I received the ftcs paul rand dixon award for my work on consumer.
Effective september 1, 2015, the digital advertising alliance daa is now enforcing its selfregulatory principles for online behavioral advertising and multisite data collectively, the principles in the mobile ecosystem. The ftcs proposed definition of online behavioral advertising needs greater precision. Pdf legal and ethical challenges of online behavioral. In december 2007, the ftc promulgated a set of proposed principles intended to provide a basis for the online.
Second, the recommendations protections are narrow, creating illusory protections for user privacy, whether or not they opt out of oba. Selfregulatory principles for online behavioral advertising. Ftc issues new guidance for advertising and marketing in the. Ftc issues guidelines for behavioural targeting gigaom.
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