- Legislation should adequately balance enhancing consumer privacy with preserving the ad-supported internet.
- Laws should be appropriately tailored and specific for different types of data and data use.
LONDON, 14 FEBRUARY 2023 - - The International Advertising Association today announced the launch of a set of global privacy principles to inform effective privacy legislation.
As evidenced by President Biden's State of the Union remarks, privacy continues to be top of mind for many policymakers around the world and it is more important than ever to ensure the advertising industry is part of the conversation.
The IAA's core principles cover a range of topics, including preserving consumer benefits, tailoring legislation to address specific harms, accounting for self-regulation, and facilitating global consistency whenever possible.
Commenting on the release of the core principles, Dagmara Szulce, Managing Director, IAA Global, said: “One of the most important and pressing consumer protection issues that legislators are facing today is how to adequately protect consumer privacy.
Well-crafted legislation can provide not only the protection consumers need and deserve but can allow for a robust advertising ecosystem that provides great benefits to both industry and consumers alike.”
When considering privacy legislation that may impact the advertising industry, the IAA suggests policymakers should consider the following core principles listed below:
- Preserve Consumer Benefits. Advertising supports an open, free web. Legislation should balance the interests consumers have in protecting their privacy with the benefits they receive from an advertising-supported internet.
- Transparency and Choice. Legislation should give consumers transparency and choice regarding the use of their data. Outright prohibitions on advertising can create inflexible standards, stifle innovation, and deprive consumers
- Global Harmonization. With increasing globalization, legislation should focus on supporting the development of strong, clear, and consistent global standards that can be adopted around the world, instead of local standards.
A patchwork of differing standards creates confusion for, and imposes unnecessary burdens on, both consumers and businesses.
- Tailored. Legislation should be narrowly tailored to address the specific harms that have been identified and should be a proportionate response to those specific identified harms, taking into account the impact that new regulation
will have both on consumers and the economy. Legislators should avoid overly broad regulation, which may have unintended consequences that may unduly hinder economic growth. Prohibiting tracking technologies, for example, may impact
not only personalized advertising, but the measurement of all online advertising and the development of new products and services that benefit consumers.
- Context. Not all data, or all data uses, are the same. When considering obligations regarding the collection and use of data, legislation should clearly define the types of data covered, and should take into account all of the
relevant factors, including the type and sensitivity of data, who is collecting the data, how that data will be used, and the benefits and risks of the data use.
- Damages. Legislation should focus on providing remedies that are related to the actual damages resulting from the misuse of data, rather than theoretical harms. A technical violation that did not result in damage to consumers
should not be treated the same as a wilful violation that causes significant, measurable consumer harm.
- Self-Regulation. Legislation should take into account longstanding and well-established self-regulatory initiatives (including self-harbor programs) and should incentivize the continued use and development of those initiatives to
keep pace with technology and changing consumer expectations.
- Technology. Legislation should be flexible enough to allow for innovation and to accommodate rapidly changing technologies and evolving needs.
- Non-Discrimination. To the extent not already addressed by other applicable laws, legislation should prohibit companies from using consumer data to unlawfully discriminate against consumers.
Commenting on the report, Sasan Saeidi, the IAA’s World President and Chairman, said: “Consumers and businesses should be subject to the same privacy rules, regardless of where they are located. As an organization that represents member companies across
56 countries, we believe striving for global harmonization of privacy laws is a critical goal for policymakers.”
Sasan Saeidi, the IAA’s World President and Chairman, and Dagmara Szulce, Managing Director, IAA Global, are available for interviews to discuss the IAA’s Privacy Principles.