Bloomberg Law: Privacy & Data Security brings you single-source access to the expertise of Bloomberg Law’s privacy and data security editorial team, contributing practitioners,...
Oct. 16 --Website operators and publishers have until Jan. 1, 2014, to provide notice and choice to consumers about the collection and use of their data for online behavioral advertising (OBA) in cases where third parties such as ad networks do not provide adequate notice, the Online Interest-Based Advertising Accountability Program said in its first compliance warning issued Oct. 14.
The program, which is operated by the Council of Better Business Bureaus' Advertising Self-Regulatory Council (ASRC), is one of two accountability agents with the responsibility for enforcing the Self-Regulatory Principles for Online Behavioral Advertising.
The “Transparency Principle” requires that both first parties, such as websites, and third parties, such as ad networks, provide “enhanced notice.” This form of notice involves providing real-time notice to a consumer about OBA data collection and use, as well as a mechanism to opt out of such data collection and use, according to the compliance warning.
Enhanced notice is sometimes provided through the Digital Advertising Alliance's Advertising Option Icon (AdChoices Icon), which links to a disclosure about OBA data collection and use practices and provides an opt-out mechanism, the program said.
Although first and third parties share the responsibility for providing enhanced notice, some companies are confused about how that responsibility applies to first parties, the program discovered.
“In the course of its compliance monitoring activities, the Accountability Program has noted that a significant minority of website operators that are otherwise in compliance with the OBA Principles are omitting notice of data collection for OBA on their websites in cases in which the third parties are not able to provide real-time notice without first-party assistance,” the program said.
Unless an ad bearing in-ad notice is served on every Web page of a publisher's site where third parties are collecting data for OBA and that notice directs a consumer to the choice mechanisms of all third parties collecting on that Web page or to an industry-developed choice mechanism, the Transparency Principle's enhanced notice requirement for collection is not satisfied, and the website operator cannot rely on the third party's in-ad enhanced notice as provided under Section II.A.2. of the OBA Principles (Third Party Advertisement Notice).
The program said it will being enforcing this requirement Jan. 1, 2014.
Also on Oct. 14, the program announced that it had administratively closed formal reviews of seven companies whose websites did not provide enhanced notice.
The program said it “felt that it would be inequitable to single out the seven companies that were otherwise in full compliance with the OBA Principles for an enforcement action, without giving them the same opportunity as we were affording other companies to benefit from this general Compliance Warning.”
The factors convincing the program to close the reviews included the companies' “longstanding compliance” with other OBA requirements, the widespread confusion about the enhanced notice requirement, the lack of a Federal Trade Commission or industry best practice concerning enhanced notice and the seven companies' cooperation with the program.
The names of the seven companies are not being made public, Linda Bean, director of communications at the ASRC, told Bloomberg BNA Oct. 16.
To contact the reporter on this story: Katie W. Johnson in Washington at email@example.com
To contact the editor responsible for this story: Barbara Yuill at firstname.lastname@example.org
The compliance warning is available at http://www.asrcreviews.org/wp-content/uploads/2013/10/Accountability-Program-First-Party-Enhanced-Notice-Compliance-Warning-CW-01-2013.pdf.
The administrative closure document is available at http://www.asrcreviews.org/wp-content/uploads/2013/10/Consolidated-Administrative-Closures-10.14.13-3.pdf.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)