Behavioural Advertising Policy: The Regulatory Future of Online Advertising

 

Behavioural Advertising is the collection of user data for advertising purposes. Behavioural targeting uses information collected on an individual's web-browsing behaviour, such as the pages they have visited or the searches they have made, to target them for future advertisements. This can be combined with other factors such as demography, page content and geography in order to maximise effect.

 

The European Parliament Committee on the Internal Market and Consumer Protection has published a report, authored by Philippe Juvin, MEP, who has suggested a range of measures to deal with this issue. The key regulatory issue is the balance between granting the user free access to online content and the use of personal data gleaned by profiling.

 

The report proposes that all behavioural advertising that is targeted at children be banned (this call was echoed by the European Data Protection Supervisor in an opinion issued this month) . It also proposes that all behavioural advertisements should have a clear icon stating “behavioural advertising”, linked to a page which explains what it is. Furthermore, it encourages an EU-wide information campaign designed to highlight the issues for consumers and encourage awareness. 

 

One type of behavioural advertising utilises cookies in order to function.  (Cookies are pieces of data created when someone visits a website and contain a unique number which is stored in the hard disc of the computer, revealing when they return to a website and what pages or services they use).  The EU’s ePrivacy Directive had previously, in 2009, set out the rules for cookies and their usage. However, the Commission has indicated in the European Commission strategy on Data Protection that they are re-considering this position. 

 

As many users consent to the utilisation of their data for behavioural advertising, the scope of the Communities powers in this area is limited. However, the consent is often elicited through the terms and conditions at the beginning of the online registration process, when it is suggested that many people are not fully aware of the contract they are signing. The awareness campaign, combined with the icon, represent an attempt by the Commission to increase awareness of the issue in the public consciousness and alter the behaviour of users accordingly.

 

It is possible these measures will gain significant public support considering that the majority of people polled in a recent Zogby poll indicated that they are ‘very concerned’ with behavioural advertising. Increased awareness of the extent of it may lead to a stronger public backlash against its use by advertisers.  Furthermore, 77% stated that they would support a “Do Not Track” list, an option proposed in the United States by the Federal Trade Commission,  which would allow users to opt out of behavioural advertising. 

 

Behavioural advertising, compared to traditional forms of advertising, is understandably popular with advertisers. As a result, many of the organisations which utilise behavioural advertising operate on a freemium model, whereby the services are provided free of charge to the user and funded by advertising sales. Restrictions on these practices could result in a reduction of the freemium services offered.  The extent to which users would be willing to give up their free services in order to prevent behavioural advertising is unclear. 

 

In contrast to other Internet companies which utilise behavioural advertising, Google has taken a leading role in allowing users to exercise control over which data is held by the company. With products like Google Dashboard, it is possible for users to see all data which is held on them by Google, and the user is allowed to clear all data whenever he/she wishes. Unlike social networks such as Facebook, it is still possible to use Google products and not store data, which could be used for behavioural advertising. 

 

This content forms part of the E View project, which is part-funded by DG Communication of the European Parliament.