The Committee of Advertising Practice (CAP) has introduced new rules into the CAP Code which will require marketers and third parties to ensure that web users are made aware of, and can exercise the option to opt out of, the collection and use of their web browsing data for the purposes of online behavioural advertising (OBA).
Background
OBA is a form of targeted advertising which uses data collected through tracking cookies (text stored by a user’s web browser) to assess an individual’s browsing habits over time and target advertising based on that individual’s interests, likes and dislikes.
This data is often collected by third party advertising network providers who create a profile of a user based upon their browsing habits across a number of websites which are not under its control. From 4 February 2013, advertising networks and other third parties using OBA will be required to notify web users of ads being delivered using OBA and give web users the option to opt out of receiving such ads.
The rules
The key provisions of Appendix 3 of the CAP Code will require advertising networks and other third parties engaged in the collection and use of information for OBA purposes to:
- Notify the consumer about the collection and use of such data on their website and provide a mechanism for the consumer to opt out of collection and use for OBA purposes.
- Notify the consumer in or around advertisements delivered using OBA that they are collecting and using web viewing data for OBA purposes, and provide a mechanism for the consumer to opt out of collection and use for OBA purposes.
- Ensure that OBA is not used to target children aged 12 or under.
The new rules will not apply to contextual advertising, web analytics, ad reporting or ad delivery, the collection and use of information for OBA by website operators on their own websites or the use of OBA in rich media, in-stream videos online. The new rules do not currently cover OBA on mobile devices but it is envisaged that they will be updated in due course to do so.
Summary
The new rules aim to implement the Internet Advertising Bureau’s EU Industry Framework. They will give the ASA greater power to monitor and enforce. At present, advertising network providers and third parties seek to comply with current regulation by notifying consumers through the use of an icon in the corner of the display advertisement. This will no longer be sufficient as the new rules require third parties to ensure that the user can also opt out of the collection of their data and the targeting of ads based on it. CAP’s OBA Help Note is here. It should be noted that there are more extensive legal requirements in the E-Privacy Directive.