Leading DM Trade Groups Introduce Privacy Principles for Collection and Use of Behavioral Data
"The NAI applauds the creation of these Principles and appreciates the opportunity to have been involved in their development," said Charles Curran, Executive Director of the Network Advertising Initiative, a cooperative of online marketing and analytics companies committed to building consumer awareness and establishing responsible business and data management practices and standards. "Our members' long-standing experience under the NAI's code shows the effectiveness of self-regulation in providing consumers with notice and choice about online behavioral advertising. The broadening of industry self-regulatory standards under these Principles will enhance consumer confidence in the online medium, and we commend the associations for their leadership in bringing together thousands of companies to expand transparency and choice across the Internet ecosystem."
Taken collectively, the participating associations represent more than 5,000 leading U.S. companies across all of the key businesses that have played a role in the transformation of the way consumers experience media. According to the "Economic Value of the Advertising-Supported Internet Ecosystem," a recent study commissioned by the IAB, the advertising-supported Internet represents 2.1% of the total U.S. gross domestic product (GDP) contributing $300 billion to the economy and has created 3.1 million U.S. jobs. The Internet itself has become a vital link in the supply chain and communications chain for all businesses, and is a lifeline for the hundreds of thousands of small businesses and publishers that have no equivalently cost-effective means of reaching so wide an audience. The ecosystem includes advertisers, advertising agencies, Web publishers, Internet access services providers, providers of application software such as Web toolbars and Internet Web browsers, search engines and online advertising networks.
In January 2009, the task force announced that it had been working on the development of these Principles in direct response to calls on the Internet ecosystem by the FTC to develop more robust and effective self-regulation of online behavioral based advertising practices that would foster transparency, knowledge and choice for consumers.