Trade Organizations Issue Data Collection Principles

In an effort to stave off external oversight, a group of media and marketing trade organizations has issued a set of self-regulation principles designed to standardize consumer data collection practices.

Taken as a whole, the principles offer clear requirements for informing consumers about data collection practices. The principles also recommend practices that would allow consumer to exercise control over their information. The program is expected to be implemented at the beginning of 2010.

The seven principles represent a collaborative effort between the American Association of Advertising Agencies; the Association of National Advertisers; the Direct Marketing Association; and the Interactive Advertising Bureau. Additionally, The Council of Better Business Bureaus has agreed, along with the DMA, to implement accountability programs to promote widespread adoption of the seven principles.

The principles are designed to address consumer concerns about the use of personal information and interest-based advertising while preserving marketing that supports free online content and the ability to deliver relevant advertising to consumers. The principles include:

The Education Principle, which calls for organizations to participate in efforts to educate individuals and businesses about online behavioral 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, which 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, which 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, which 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, which 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, which 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, which 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.

And the Accountability Principle, which 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.

“Consumers deserve transparency regarding the collection and use of their data for behavioral advertising purposes. I am gratified that a group of influential associations – representing a significant component of the Internet community – has responded to so many of the privacy concerns raised by my colleagues and myself,” said Federal Trade Commission commissioner Pamela Jones Harbour, in a statement.

Jones Harbour continued, “These associations have invested substantial efforts to actually deliver a draft set of privacy principles, which have the potential to dramatically advance the cause of consumer privacy. I commend these organizations for taking this important first step. I am hopeful that successful implementation will follow. In the meantime, I encourage the entire privacy community to continue a dialogue that places the interests of consumers first.”