Behavioral advertising refers to the use of information to predict the types of products or services of greatest interest to a particular consumer. Online behavioral advertising takes two forms. “First party” behavioral advertising refers to situations in which a website uses information that it obtains when interacting with a visitor. “Third party” behavioral advertising refers to situations in which a company permits others to place tracking cookies on the computers of people who visit the site, so that those individuals can be monitored across a behavioral advertising network.
Two self-regulatory associations – the Network Advertising Initiative (“NAI”) and the Digital Advertising Alliance (“DAA”) – have focused on creating standards for companies engaged in third party online behavioral advertising, as well as promoting mechanisms for consumers to opt-out of being tracked.In addition to the self-regulatory effort, on January 1, 2014, a California statute went into effect that could be interpreted as requiring websites to notify consumers if they permit third party behavioral advertising. Items to Review When Shopping for a Cyber Insurance Policy:
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What to think about when evaluating your company’s online behavioral advertising practices:
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