Get ready: September 1 marks the beginning of enforcement of the Digital Advertising Alliance’s mobile privacy code, the group recently announced. Companies will be required to provide consumers with an opt-out mechanism for targeted ads based on data collected across mobile apps.
“The incredible explosion of free apps and services we’ve seen in the mobile space has been driven in large part by interest-based advertising,” Stu Ingis, DAA General Counsel, said in a statement. “By launching enforcement of the DAA Principles in the mobile space, we are helping ensure that consumer trust can grow and thrive through independent enforcement of those standards.”
In 2013, the DAA issued the Application of Self-Regulatory Principles to the Mobile Environment, the group’s rules for privacy in the mobile ecosystem. Intended to complement the DAA’s preexisting Self-Regulatory Principles for Online Behavioral Advertising, the mobile version mandated that ad networks and other companies notify consumers about cross-app advertising and provide an app with an opt-out mechanism. Opt-in consent is required before marketers can collect geolocation information and data from a consumer’s address book.
Earlier this year, the DAA released AppChoices, an app for mobile opt-outs and has set September 1 as the compliance deadline.
The two-year gap was intended to provide businesses with enough time to prepare for compliance, the DAA said. “We give companies a reasonable amount of time to make sure that everything’s in order,” DAA executive director Lou Mastria told MediaPost.
Enforcement will be implemented by the Council of the Better Business Bureaus in cooperation with the Direct Marketing Association, by proactively monitoring cross-app advertising as well as responding to complaints.
The CBBB and DMA work with companies found to be in violation of the DAA Principles, although the self-regulatory entities could take additional actions by referring the violator to the Federal Trade Commission (or in the case of SunTrust Bank, the Consumer Financial Protection Bureau) by publicly explaining the nature of the compliance issue and its resolution.
To read the DAA’s mobile guidance, click here.
Why It Matters: Beginning September 1, companies that collect and use data across sites or apps for interest-based advertising will be required to demonstrate compliance with the DAA’s Mobile Guidance. “This marks an important milestone in expanding our ability to provide a consistent consumer experience through independent accountability of our technology-neutral, privacy-friendly Principles to devices and platforms on-the-go consumers increasingly use,” Mastria said in a statement. “By extending our accountability program into the mobile application space and creating new web- and app-based tools, we have created a robust and enforceable industry-wide regime that covers existing and emerging technologies in the evolving multi-screen world.”