All businesses acting in the mobile ecosystem—including app developers, analytics companies, advertising networks, app platform providers, and providers of devices and related services—should be aware that the Digital Advertising Alliance (DAA) intends to begin self-regulatory enforcement of its mobile privacy principles beginning on September 1, 2015. The DAA previously provided guidance on how the DAA's "Self-Regulatory Principles for Online Behavioral Advertising"1 and "Self-Regulatory Principles for Multi-Site Data"2 (collectively, the "DAA Principles") apply to the mobile ecosystem.3 All businesses involved in interest-based advertising or multi-site, cross-app data collection—even entities that have chosen not to participate in the DAA's self-regulatory program—should review and consider complying with the DAA Principles.4
The DAA Principles were developed to provide consumers with transparency and control with respect to certain data collections. App developers and third parties that collect and use certain data through apps are required to provide clear, prominent notice of their data collection and use practices. Moreover, they are required to provide consumers with choices about how certain information is collected, used, and disclosed to others.
Complaints about non-compliant businesses may be referred to the Online Interest-Based Advertising Accountability Program, operated by the Council of Better Business Bureaus. Businesses that choose not to comply with the DAA Principles risk referral to the Federal Trade Commission for possible enforcement action.
The Network Advertising Initiative (NAI), an industry trade group, has its own self-regulatory code of conduct applicable to online advertising.5 The Code of Conduct imposes notice, transparency, choice, and data security requirements on NAI members. In 2013, the NAI released the NAI Mobile Application Code applicable to cross-app advertising and ad delivery and reporting activities.6 As with the DAA mobile principles, the NAI is also expected to begin enforcement of its Mobile Application Code later this year, although no date has been announced.
Compliance with the DAA Principles and the NAI's Mobile Application Code will require time and resources. Businesses should evaluate whether they need to comply and, if they have not done so already, begin to plan their compliance efforts.
1 Digital Advertising Alliance, "Self-Regulatory Principles for Online Behavioral Advertising," 2009, available at http://www.aboutads.info/resource/download/seven-principles-07-01-09.pdf.
2 Digital Advertising Alliance, "Self-Regulatory Principles for Multi-Site Data," 2011, available at http://www.aboutads.info/resource/download/Multi-Site-Data-Principles.pdf.
3 The guidance can be found at http://www.aboutads.info/DAA_Mobile_Guidance.pdf.
4 See more information about the application of DAA Principles to the mobile ecosystem at https://www.wsgr.com/publications/PDFSearch/eye-on-privacy/Sep2013/index.html#1.
5 Network Advertising Initiative, "2013 NAI Code of Conduct," available at https://www.networkadvertising.org/2013_Principles.pdf.
6 Network Advertising Initiative, "2013 NAI Mobile Application Code," available at http://www.networkadvertising.org/mobile/NAI_Mobile_Application_Code.pdf.
