Firms to give notice if collecting online data for ads

From September any company collecting user data online for advertising purposes will have to inform the user, new rules issued by the Advertising Standards Authority of Ireland (ASAI) today will stipulate.

Many companies engage in online behavioural advertising (OBA) which involves using information and cookies gathered through web browsers to deliver targeted ads to consumers. The authority said the use of cookies provides advertisers and companies with insights into web-viewing behaviour to deliver ads more likely to be of interest to the user.

Busy cookies
The cookies collect information about pages visited, ads clicked and products purchased or shown an interest in, thereby enabling companies to build a profile of the user and deliver targeted ads.

Under the new rules companies must make it clear they are gathering information in this way and most are likely to do so by including an icon in the corner of online ads.

The rules, which come into effect on September 1st, require consumers to be given “clear and comprehensive notice” if their web-viewing behavioural data is being used for the purpose of OBA.

They also require consumers to be provided with a mechanism to exercise their choice and control over whether or not they receive OBA.

The rules also state that children aged 12 and under must not be targeted as a segment.

More transparency
The authority said its aim was to secure more transparency and control for the public regarding OBA practices. Interactive Advertising Bureau Ireland will be rolling out a consumer-focused campaign beginning today as part of a pan-European initiative designed to increase consumer awareness and understanding of OBA.

The campaign, which has been funded and developed by the European Interactive Digital Advertising Alliance, features images of a zip with statements such as “How do websites know which adverts suit your interests?”

On clicking the ads, users are taken to a landing page explaining the role of online advertising and how privacy can be protected. The bureau’s Ireland chief executive Suzanne McElligott said it was “timely” that the authority was also today announcing its role in relation to OBA complaint handling.