Alex Propes: October 2013 Archives
The Digital advertising industry exists in a complex legislative and regulatory environment. Policies in Internet governance, privacy, advertising, taxation, and intellectual property all have significant impacts on the growth and direction of the industry.
And these policies are not being developed in one place. Within the Washington, DC beltway, laws and industry guidance are promulgated by regulatory agencies, such as the Federal Trade Commission or the Federal Communications Commission, the judicial system and past precedent set by court cases, and legislation enacted by Congress.
To make this policy landscape even more complex, the digital advertising industry must also be cognizant of local and international laws. As those working in the industry know, digital advertising is borderless in nature and therefore depends upon a base level of legal cohesion among countries and regions. Disruptions stemming from policies in one nation, or U.S. state, are felt globally. Take, for example, two recent anecdotes from Europe.
On October 21, a data privacy bill before the European Parliament passed through committee on its path to becoming law. This draft bill, created in response to the recent revelations about U.S. national security data-tracking practices, directly impacts the digital advertising industry in several ways. For one, the bill calls for explicit consent before a wider variety of processing activities. The bill would also create new barriers to transferring information about EU citizens to the U.S. Perhaps most importantly, the bill proposes a new definition of personally-identifiable information that includes “online identifiers.” The European Parliament will now negotiate with the Council of the EU to reach a compromise agreement.
Contemporaneously, the EU is considering whether or not to allow the U.S.-EU Safe Harbor Framework to continue. This framework allows participating U.S. companies to comply with EU privacy rules through a streamlined self-certification process. Under this framework, Over 4000 companies, and many IAB members, have demonstrated their high level of privacy protection in order to work with European companies and serve European citizens. Although Safe Harbor is focused on addressing commercial privacy practices, the value of the Framework has been questioned in recent months in association with national security concerns.
Were digital advertising practices and technologies static, there would already be a complicated set of rules to follow. But industry practitioners know that digital advertising is never static. Innovations are constantly created that raise new public policy questions. This is evidenced by the FTC’s recent interest in native advertising and the Internet of things.
To help the digital advertising industry identify the policies relevant to them, the IAB has created an online Legislative and Regulatory Tracker. This webpage summarizes draft legislation and regulations that will impact our ecosystem, and categorizes these proposed laws by subject, such as children’s privacy, location privacy, and trade. It also offers IAB’s positions on the draft laws, providing further insight into how IAB is working to promote growth in the interactive marketplace on behalf of its members. Whether you’re a publisher, advertising network, or marketer, we hope you find this service helpful in navigating the complex policy environment.
This tracker will continually be updated and expanded, so check back regularly for up-to-date information on the policies that could affect your business. For more updates on the IAB’s public policy work, visit the IAB public policy website. If you have questions about the tracker or IAB’s other public policy initiatives, please feel free to email me at [email protected].
About the Author
Alex Propes is Senior Manager, Public Policy, at the IAB.