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NAI expands Requirements for Sensor Data Collection; Bans Behavioral Targeting of Users Younger Than 16

The Conduct Code, first published in 2000 and last updated in 2018, is meant to thoroughly encompass the products, technologies, and most recent ways of today's digital advertising society.

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What: NAI has released the most recent update of its Code of Conduct, which expands on the rules and regulations around digital advertising, reinforces requirements for collection and use of data, and bans behavioral targeting of users younger than 16.
Why it matters: The Conduct Code, first published in 2000 and last updated in 2018, is meant to thoroughly encompass the products, technologies, and most recent ways of today’s digital advertising society.

Non-profit organization Network Advertising Initiative has announced its 2020 Code of Conduct. The document is meant to be an updated, more comprehensive version of the NAI Code, which was first published in 2000. The 2020 Code expands coverage to fully encompass all the new products and technologies relevant to today’s digital advertising industry and strengthens requirements related to the collection and use of NAI member companies’ data for digital advertising.

“The 2020 NAI Code expands the scope of coverage of modern digital advertising practices by formally including the use of offline data and advertiser customer database information to target ads across websites, applications, and television screens; something many of our members already proactively honor,” said Leigh Freund, NAI President and CEO, in a statement. “This Code further aims to future-proof and proactively fill potential gaps by including any other use of previously collected data about a particular user or device to target digital advertising.

Among the main updates included since the 2018 document, NAI goes further into collection and use of precise location data. “We are asking members to work with application publishers to provide additional notice regarding advertisers’ uses of data when obtaining consumer consent”. The code also imposes rigorous requirements for the collection and use of sensor information like that provided by cameras, microphones, and biometric sensors.

Moreover, to comply with the California Consumer Privacy Act, NAI’s 2020 Code bans behavioral targeting of users younger than 16, thus raising the minimum age from the 2018 document by 3 years.

“The Code also introduces requirements to increase transparency for political audience targeting, requiring NAI members to disclose the political audience segments they use for tailored advertising.”, said Freund.

The enforcement of the 2020 Code is planned for January 1st, 2020.

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