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NAI Releases Its 2013 Code of Conduct for Online Behavioral Advertising
Practical Law Legal Update 7-530-4205 (Approx. 4 pages)
NAI Releases Its 2013 Code of Conduct for Online Behavioral Advertising
by PLC Commercial
| Published on 28 May 2013 • USA (National/Federal) |
The National Advertising Initiative (NAI) recently published its 2013 Code of Conduct for Internet Based Advertising, reflecting new standards for online behavioral advertising (OBA).
The Network Advertising Initiative (NAI) recently released the 2013 NAI Code of Conduct. The purpose of the updated code is to provide flexibility to allow for current and emerging business models and practices, while maintaining rigorous standards for advertisers and marketers practicing online behavioral advertising (OBA).
The 2013 Code:
- Reiterates the requirements for members to make available education, notice and choice regarding OBA.
- Incorporates guidance from other regulatory sources, such as:
- the FTC's Protecting Consumer Privacy in an Era of Rapid Change; and
- the White House's Consumer Data Privacy in a Networked World.
- Synchronizes its requirements with the Digital Advertising Alliance's Self-Regulatory Principles for Online Behavioral Advertising.
- Creates three new categorizations of data identifiability, which reflect a middle ground between the FTC and the industry definitions of what constitutes personally identifiable information (PII):
- PII: data used or intended to be used to identify an individual;
- non-PII: data linked or intended to be linked to a specific computer or device; and
- de-identified data: data that has no specific notice, consent or retention requirements.
- Places additional obligations on advertisers and marketers practicing OBA, regarding:
- sensitive data, which contains information on the health or sexual orientation of a device user); and
- precise geolocation data, which includes a range of technologies (available presently and in the future) that are able to provide the actual physical location of a device with a reasonable degree of specificity.
The NAI is a group of third-party online advertising companies who established a strict self-regulatory code of conduct, partly intended to ward off federal legislation and regulation targeted at the industry. The NAI announced the release of the 2013 Code of Conduct in a May 16, 2013 press release.
For more information on OBA, see:
For more information on the NAI, see Practice Note, Data Protection Country Questions: US.
For information on direct marketing generally, see Practice Note, Direct Marketing.
For information on online advertising and marketing, see Online Advertising and Marketing Campaign Checklist.