Brands face behavioural targeting regulation

LONDON - Brands who rely heavily on behavioural targeting may lose audience share following the Internet Advertising Bureau's (IAB) launch of the UK's first self-regulatory guidelines for data.

Brands face behavioural targeting regulation

The Good Practice Principles aim to increase consumer awareness and choice about the kind of advertising received, and will require participating companies such as Google, AOL and Microsoft Advertising, to give consumers a clear choice about whether their browsing habits may be tracked by advertisers.

The principles, which have the backing of the Information Commissioner's Office, cover three key elements: transparency, user choice and education.

Under the guidelines publishers and ad networks must clearly inform a consumer that data is being collected and used behavioural targeting, and give users the choice to opt out.

All companies that sign up to the guidelines have six months to comply. The IAB has also launched a website, www.youonlinechoices.co.uk to help consumer learn how behavioural targeting works, how it benefits them, how their privacy is protected and how to opt out.

Once the first signatories have complied with the principles, the portal will also include a centralised set of steps for consumers to decline behavioural advertising. 

Nick Stringer, head of regulatory affairs at the IAB, said the guidelines have been in the pipeline for the past year, and are not a result of the controversy surrounding BT's use of Phorm's targeting software.

"I think its important to get something out into the public as soon as possible  to reassure consumers because after all it is about trust and it doesn't help when one member of the IAB and takes a lot of flack for what it's done."

He said the focus of the principles is to educate the public, as advertisers work in an industry focused on services, not technology.

"The majority of people don't get technology, they just want it to work," he said. "The individual companies will make it very clear - if you do not want this type of advertising, click this button."

Stringer stressed that the guidelines are the just first step in regulating online behavioural targeting, as they only apply to the companies that collect and use the data, not ISPs and publishers, who will need to supplement the principles with their own guidelines.

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