The EU self-regulation of online behavioural advertising

May 2014

What is it?

• EU advertising & media trade bodies launched a self-regulatory initiative in April 2011 to enhance transparency & consumer control.

• Its aim is to provide both consumers and businesses with a consistent approach – joining up with other similar initiatives (eg US).

• Initiative covers all EU (and EEA) markets and covers seven key principles. Details at www.youronlinechoices.eu/goodpractice.html.

• At the heart of the initiative is an ‘icon’ in or around ads / on web pages, linked to information on data collection / use & control mechanisms including pan-EU site www.youronlinechoices.eu.

• Many businesses across Europe are committed. See: http://edaa.eu/participating-companies.

• Initiative backed up by robust pan-European enforcement and tried & tested independent complaints handling.

The Icon

• The icon appears in and round ads / on web pages across all EU (and EEA) markets.

• Two approved providers – TRUSTe and Ghostery Enterprise (previously known as Evidon) – help serve the icon across EU markets.

• The icon provides contextual information and user control, all a few clicks from the ad / web page itself.

• It will offer consumers easy to understand information on data collection / use and links to ways to control / manage it.

• In mid-2013, the EU ad industry launched consumer campaigns to raise awareness of the icon in the UK, Germany and Ireland. Further markets will follow.

Some Examples

Transparency – Case Study: Yahoo!

Transparency – Case Study: Criteo

Transparency – Case Study: RocketFuel

Control – Case Study: Google

Control: www.youronlinechoices.eu

The European Interactive Digital Advertising Alliance (EDAA)

• The EDAA - www.edaa.eu - administers / finances the EU programme.

• Businesses wishing to use the icon across EU / EEA markets & participate on the user-choice website (www.youronlinechoices.eu) need to register with the EDAA to do so - http://edaa.eu/certification-process/apply-for-licence.

EDAA Annual Report 2013

• The EDAA recently published its first annual report for 2013 – www.edaa.eu.

• The annual report sets out the EU body’s activity for its first full operating year.

• It also outlines the objectives for 2014, including the plan to adapt the self-regulatory programme to the mobile environment.

Compliance & enforcement – independent verification• The EU initiative introduces a new and independent compliance mechanism

across EU markets.

• Businesses self-certify their compliance and this will then be independently verified on an ongoing and real-time basis.

• There are four EDAA approved independent providers: ABC, BPA Worldwide, ePrivacy Consult and TRUSTe. See here for more details.

• Compliant businesses will be awarded a trust seal (see below) to show the ad market that they are delivering on their commitments. See those that have already achieved this here.

• Advertisers and agencies will play an important role in trading with those businesses that have the trust seal…

• …and encouraging those that do not thereby providing a commercial incentive to comply.

• Further details: http://edaa.eu/certification-process/trust-seal.

Compliance & enforcement – independent complaints handling

• The UK Advertising Standards Authority (ASA) will administer any consumer complaints.

• To do this new rules in the UK have been introduced to ensure businesses provide:

notice to be provided to web users in or around the advertisement;

choice via an opt out mechanism to prevent data from being collected and used for behavioural ad purposes.

• The rules are complementary to the EU Framework: those businesses complying with the EU Framework will be complying with the ASA’s rules.

• Other self-regulatory organisations across Europe will be implementing similar rules to ensure a consistent approach across markets.

• In the event of an escalated complaint, businesses would only need to deal with one self-regulatory organisation.

• More details: www.iabuk.net/policy/briefings.

What do policy-makers think?

“Data is a driver for growth and creativity. I believe that transparency is essential if consumers are to feel safe and empowered by the use internet, and the data that flows across it. Good progress is being made here. For example the Ad Choices self-regulatory work on transparency means consumers can now not only see which advertising networks use their data, they can opt out of targeted behavioural advertising if they wish.”

Speech by Rt. Hon Maria Miller MP, (Now Ex-)UK Secretary of State for Culture, Media & Sport, Speech to Oxford Media Convention – 26 February 2014

“I am impressed with the way in which the advertising industry has succeeded, in a short time, in putting in place a new, effective self-regulatory framework. The principles, procedures and tools help to manage online behavioural advertising and to raise citizens’ awareness. Together, these efforts will contribute significantly to empowering internet users in the management of their privacy across Europe.”

Robert Madelin, Director General, DG CONNECT, Launch of EDAA – 12 October 2012

Further information

Visit www.iabuk.net or www.edaa.euThe EDAA will host a series of

webinars in 2014. Further details are here.