Blog NAI: Network Advertising Initiative

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The NAI is proud to publish a new set of best practices, “Using Information Collected for Tailored Advertising or Ad Delivery and Reporting for Non Marketing Purposes. ” While the NAI Code addresses members’ activities regarding the collection of consumer data as it relates to Tailored Advertising or Ad Delivery and Reporting ADR, this document provides members and industry with a set of privacy protective best practices for the non marketing uses of this information. This applies to any data that was collected for Tailored Advertising or ADR and then subsequently used for purposes outside of Tailored Advertising or ADR. These best practices are particularly pertinent to sensitive information, such as Precise Location Information, where consumers would benefit from more detailed just in time notice about the uses of this information beyond advertising and marketing.

The NAI’s recent guidance on “Opt In Consent” details how members should provide detailed just in time notice when using opted in data for Tailored Advertising or ADR. These best practices expand on those use cases and discuss uses not covered by the NAI Code. Members and others across industry should consider these best practices when developing policies about the sharing and use of data for various purposes outside of the NAI Code of Conduct. As the COVID 19 pandemic has revealed, information collected as a result of Tailored Advertising or ADR, particularly location data, can be a valuable resource for public good. Many of our members have collaborated with government agencies and research institutions during this time, sharing aggregate and de identified data.

The NAI supports their efforts and we hope that this document can serve to guide any company that shares information for non marketing purposes. Members should refer to these Best Practices to determine whether further disclosure of any information would be beneficial to the user, in what form the data can be shared to minimize any privacy risk, and what restrictions could be placed to protect the data. Best Practice 1: NAI Members should apply a materiality test to determine whether non marketing uses of information collected for Tailored Advertising or ADR should be explicitly disclosed. For certain categories of data that the NAI considers “Sensitive Information,” which includes Precise Location Information, the NAI requires Opt In Consent and detailed notice of the proposed uses and sharing of the data. If a member intends to use location information collected for Tailored Advertising or ADR for non marketing purposes, the NAI recommends applying a materiality test to determine whether that non marketing purpose should also be disclosed in the just in time notices that are already required for Tailored Advertising or ADR purposes. The NAI follows the FTC’s guidance on what constitutes a “material” consideration: The basic question is whether the act or practice is likely to affect the consumer’s conduct or decision with regard to a product or service.

The Best Practices provides hypothetical scenarios in which a company may determine that the sharing of data for law enforcement purposes, for example, is material and therefore discloses that in a just in time notice.

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