Digital Advertising Be A

counsel: Venable đđĕ

stuart P. Ingis

emilio W. cividanes

Michael A. signorelli

Julia Kernochan Tama

Application of

self-Regulatory Principles to

the Mobile environment

JULY 2013

DIGITAL ADVERTISING ALLIANCE

www.AboutAds.info

American Association of Advertising Agencies

American Advertising Federation

Association of national Advertisers

council of Better Business Bureaus

Direct Marketing Association

Interactive Advertising Bureau

network Advertising Initiative

DeVeloPeD By:

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To THe MoBIle enVIRonMenT

overview

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II. Transparency and control for Multi-site Data

III. Transparency and control for cross-App Data

IV. Transparency and control for Precise location Data V. Transparency and control for Personal Directory Data VI. Purpose limitations

VII. Restrictions on uses for eligibility Purposes VIII. sensitive Data

IX. security

X. Accountability

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conTenTs

overview 1

OVERVIEW

This guidance explains for covered companies how the existing Digital Advertising Alliance (“DAA”) Self-Regulatory Principles for Online Behavioral Advertising (“OBA Principles”) and Multi- Site Data (“MSD Principles”) (collectively, the “Self-Regulatory Principles”) apply to certain types of data in the mobile Web site and application environment. This guidance responds to the fact that both First Parties and Third Parties operate across a variety of channels including mobile. The Self-Regulatory Principles apply consistently across these channels, although current implementa- tion may vary based on the technological demands of different channels.

The existing Self-Regulatory Principles and definitions remain in full force and effect, including the purpose limitations set forth in the MSD Principles, and the commentary for such Principles also applies in the mobile Web site and application environment where relevant. For clarity and ease of use, this guidance docu- ment restates many of the standards and definitions from the OBA Principles and MSD Principles. These definitions should be Application of self-Regulatory Principles

to the Mobile environment

2 overview

interpreted consistently across channels. In the future, the DAA intends to release a consolidated set of Self-Regulatory Principles that integrates this guidance document with the OBA Principles and MSD Principles, resulting in one uniform set of Principles. Section II of this guidance clarifies that the previously-issued Self-Regulatory Principles apply to the mobile Web site environ- ment. Due to the technical features of different types of devices and systems, the DAA recognizes that it may not be feasible to comply with the Self-Regulatory Principles on the mobile Web in the same manner as in a desktop computer environment. From time to time, the DAA may provide guidance on implementation practices.

Sections III, IV, and V of this guidance explain how the Self-Regu- latory Principles apply to certain data practices that may occur on mobile or other devices. Section III sets forth how the Principles apply to data collected from a particular device regarding applica- tion use over time and across non-Affiliate applications. Section IV explains the application of the Principles to Precise Location Data – data obtained from a device about the physical location of the device that is sufficiently precise to locate a specific indi- vidual or device. Entities subject to this guidance can use multiple existing technologies to satisfy this section. Section V addresses Personal Directory Data – calendar, address book, phone/text log, overview 3

or photo/video data created by a consumer that is stored on or accessed through a device.

The DAA will build on the success of its existing Web-based uniform choice mechanism by working with DAA stakeholders to develop and implement, or otherwise specify, a companion choice mechanism or setting for Cross-App Data. During this implementation phase, this guidance with respect to Cross-App Data, Precise Location Data, and Personal Directory Data will not be in effect or enforced by the DAA accountability mechanisms. After such choice mechanism is operational and the DAA has announced to covered companies that this guidance is effective and enforceable, any entity engaged in the collection and use of Cross-App Data, Precise Location Data, or Personal Direc- tory Data after the effective date established by the DAA will be subject to the DAA accountability mechanisms for engaging in practices that do not adhere to the Self-Regulatory Principles as clarified in this guidance.

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I. DEFINITIONS

A. Affiliate

An Affiliate is an entity that Controls, is Controlled by, or is under common Control with, another entity.

B. Consent

Consent means an individual’s action in response to a clear, meaningful, and prominent notice regarding the collection and use of data for a specific purpose. Where an entity has a relationship with a consumer through an additional or different medium than the device to which Consent applies, Consent may be obtained through any such medium.

Commentary: Pursuant to this definition, an entity

may obtain Consent through a device other than the device to which the Consent applies. For example,

where an entity offers a video viewing service that is available to subscribers on non-mobile devices and is also available on mobile devices, the entity may obtain Consent through a non-mobile device that applies to one or more mobile devices.

C. Control

Control of an entity means that one entity (1) is under significant common ownership or operational control of the other entity, or (2) has the power to exercise a con-

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trolling influence over the management or policies of the other entity. In addition, for an entity to be under the Control of another entity and thus be treated as a First Party under these Principles, the entity must adhere to policies with respect to Cross-App Data, Precise Location Data, and Personal Directory Data that are not materi- ally inconsistent with the other entity’s policies. D. Cross-App Data

Cross-App Data is data collected from a particular device regarding application use over time and across non- Affiliate applications. Cross-App Data does not include Precise Location Data or Personal Directory Data.

Commentary: Cross-App Data includes unique

values assigned or attributed to a device or a unique combination of characteristics associated with a device where combined with Cross-App Data. Cross-App

Data does not include data that is not associated with a specific individual or device, such as data that has been De-Identified.

Cross-App Data does not include data that is collected about non-Affiliate applications but is not associated or combined across such applications. If a Third Party associates or combines previously-collected data to create Cross-App Data, the obligations under these Principles are triggered at the time that the entity creates such Cross-App Data.

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E. De-Identification Process

Data has been De-Identified when an entity has taken reasonable steps to ensure that the data cannot reason- ably be re-associated or connected to an individual or be connected to or associated with a particular computer or device.

An entity should take reasonable steps to protect the non-identifiable nature of data if it is distributed to non- Affiliates and obtain satisfactory written assurance that such entities will not attempt to reconstruct the data in a way such that an individual may be re-identified and will use or disclose the de-identified data only for uses as specified by the entity.

An entity should also take reasonable steps to ensure that any non-Affiliate that receives de-identified data will itself ensure that any further non-Affiliate entities to which such data is disclosed agree to restrictions and conditions set forth in this subsection I.E.

F. Delivery

Delivery is the delivery of online content, advertisements, or advertising-related services using Reporting data. De- livery does not include the collection and use of Report- ing data when such data is used to deliver online adver- tisements or advertising-related services to a computer or device based on the preferences or interests inferred from information collected over time and across non-Affiliate

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mobile Web sites because this type of collection and use is covered by the definition of Online Behavioral Advertising in the Self-Regulatory Principles for Online Behavioral Advertising.

G. First Party

A First Party is the entity that is the owner of an applica- tion, or has Control over the application, with which the consumer interacts, and its Affiliates.

Commentary: Agents and other entities that perform business operations of First Parties are treated as if they stand in the shoes of First Parties under these Principles. Similarly, this traditional legal construct of agents would apply to Third Parties and their agents and

other entities that perform business operations of Third Parties. If an agent is taking on the responsibility of an entity that is a First Party or Third Party, either the agent or that entity would have to satisfy the obligations under these Principles. Thus, an entity cannot escape its obligations by outsourcing its responsibilities to an agent.

H. Market Research

Market Research means the analysis of: market segmen- tation or trends; consumer preferences and behaviors; research about consumers, products, or services; or the effectiveness of marketing or advertising. A key charac- 8 Ƥ

teristic of market research is that the data is not re-iden- tified to market directly back to, or otherwise re-contact a specific computer or device. Thus, the term “market research” does not include sales, promotional, or market- ing activities directed at a specific computer or device. Commentary: Any contact back to a computer or

device that is based on an aggregate use of data that may have been collected from such computer or device is not disqualified from being “market research” because data collected from such computer or device was

included in the aggregate use.

I. Personal Directory Data

Personal Directory Data is calendar, address book, phone/text log, or photo/video data created by a con- sumer that is stored on or accessed through a particular device.

Commentary: Personal Directory Data includes

unique values assigned or attributed to a device or a unique combination of characteristics associated with a device where combined with Personal Directory Data. Personal Directory Data does not include data that is not associated with a specific individual or device, such as data that has been De-Identified.

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J. Personally Identifiable Information (“PII”)

Personally Identifiable Information is information about a specific individual including name, address, telephone number, and email address – when used to identify a particular individual.

K. Precise Location Data

Precise Location Data is data obtained from a device about the physical location of the device that is suffi- ciently precise to locate a specific individual or device. Commentary: Precise Location Data includes unique

values assigned or attributed to a device or a unique combination of characteristics associated with a device where combined with Precise Location Data. Precise Location Data does not include data that is not

associated with a specific individual or device, such as data that has been De-Identified.

Precise Location Data does not include location data that is not precise, including location data that has been or will be rendered not precise within a reasonable period of time from collection and during that period of time is not used for purposes other than those set forth in Section VI. Precise Location Data may include,

for example, data obtained from cell tower or Wi-

Fi triangulation techniques, or latitude-longitude coordinates obtained through GPS technology, if

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such data is sufficiently precise to locate a specific individual or device. Precise Location Data does

not include five-digit ZIP code, city name, general geographic information whether derived from an IP

address or other sources, or information that does not necessarily reflect the actual location of a device such as information entered by a user or a billing address associated with an account.

Due to the technical limitations of different types of devices and systems, the DAA recognizes that it may not be feasible to comply with this guidance regarding Precise Location Data on all devices in the same

manner. From time to time, the DAA may provide

guidance on implementation practices for compliance with the Self-Regulatory Principles across different types of devices and systems.

L. Product Development

Product Development means the analysis of: (1) the char- acteristics of a market or group of consumers; or (2) the performance of a product, service or feature, in order to improve existing products or services or to develop new products or services. Like data used for Market Research, data used for Product Development is not re-identified to market directly back to, or otherwise re-contact a specific computer or device.

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Commentary: Any contact back to a computer or

device that is based on an aggregate use of data that may have been collected from such computer or device is not disqualified from being “product development” because data collected from such computer or device was included in the aggregate use.

M. Reporting

Reporting is the logging of Cross-App Data, Precise Location Data, or Personal Directory Data on an ap- plication or the collection or use of other information about an application, operating system, date and time of viewing of the application or advertisement, or impres- sion information for:

• Statistical reporting in connection with the activity on an application;

• Analytics;

• Optimization of location of ad and media

placement;

• Reach and frequency metrics (e.g., frequency

capping);

• Ad performance; and

• Logging the number and type of advertisements

served on a particular application.

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N. Third Party

An entity is a Third Party to the extent that it col- lects Cross-App Data or Precise Location Data from or through a non-Affiliate’s application, or collects Personal Directory Data from a device.

Commentary: An entity may be a Third Party with

respect to some of its activities or services, and not for its other activities or services. An entity may be a Third Party if it collects Cross-App Data, Precise Location Data, or Personal Directory Data by providing

software development kits or other technical tools that are integrated into a non-Affiliate’s application.

In addition, in certain situations where it is clear that the consumer is interacting with a portion of an application that is not an advertisement and is being operated by a different entity than the owner of the application, the different entity would not be a Third Party for purposes of the Principles, because the consumer would reasonably understand the nature of the direct interaction with that entity. The situation where this occurs most frequently today is where an entity through a “widget” or “video player” enables content and it is clear that such content is not an advertisement and that portion of the application is provided by the other entity and not the First Party application. The other entity (e.g., the “widget” or

“video player”) is directly interacting with the consumer and, from the consumer’s perspective, acting as a First Transparency and control for Multi-site Data 13

Party. Thus, it is unnecessary to apply to these activities the Principles governing data collection and use by Third Parties with which the consumer is not directly interacting.

II. TRANSPARENCY AND CONTROL FOR

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The collection and use of Multi-Site Data from any type of computer or device is covered by the Self-Regulatory Prin- ciples for Multi-Site Data.

Commentary: Mobile devices may be used to access Web sites. Due to the technical limitations of different types of devices and systems, however, the DAA recognizes that it may not be feasible to comply with the Self-Regulatory Principles on all devices in the same manner as in a desktop computer environment. From time to time, the DAA may provide guidance on implementation practices for compliance with the Self-Regulatory Principles across different types of devices and systems.

The DAA recognizes, for example, that on devices with small screens it may not be feasible to provide notice of Multi-Site Data collection on the specific Web page where such data is collected even if there is an arrangement with the First Party for the provision of such notice. In such cases, it is acceptable for notice to be provided where such notice is clear, meaningful, and prominent.

14 Transparency and control for cross-App Data

III. TRANSPARENCY AND CONTROL FOR

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A. TRANSPARENCY

1. Third Party Notice

Third Parties should give clear, meaningful, and

prominent notice of their Cross-App Data collection and use practices for purposes other than those set forth in Section VI. Such notice should include clear descriptions of the following:

(a) The types of data collected, including any

Personally Identifiable Information;

(b) The uses of such data, including whether it

will be transferred to a non-Affiliate;

(c) An easy-to-use mechanism for exercising

choice with respect to the collection and use

of such data or the transfer of such data to a

non-Affiliate for purposes other than those set

forth in Section VI; and

(d) The fact that the entity adheres to these

Principles.

Third Parties should provide such notice on their

own Web sites or accessible from any application

from or through which they collect Cross-App Data. 2. Third Party Enhanced Notice on Cross-App Data

In addition to providing notice as described in Sec- tion III.A.1, Third Parties should provide enhanced Transparency and control for cross-App Data 15

notice of their Cross-App Data collection and use

practices for purposes other than those set forth in Section VI. Such enhanced notice should be pro-

vided as set forth below in (a) or (b):

(a) Application Notice: Third Parties should

provide notice through a clear, meaningful,

and prominent link to a disclosure described

in Section III.A.1 that is presented within the

application as follows:

(i) In or around an advertisement

delivered using Cross-App Data or

(ii) If there is an arrangement with the

First Party for the provision of such

notice,

1. Before the application is

installed, as part of the process

of downloading an application

to a device, at the time that the

application is opened for the

first time, or at the time Cross-

App Data is collected, and

2. In the application’s settings or

any privacy policy.

(b) Participation in Choice Mechanism(s) or

Setting(s): Third Parties that do not provide

enhanced notice through one of the meth-

ods set forth in subparagraph (a) should be

individually listed either:

16 Transparency and control for cross-App Data

(i) On a mechanism or setting that

meets Digital Advertising Alliance

specifications and is linked from the

disclosure described in Section III.A.3

or

(ii) If agreed to by the First Party, in

the disclosure described in Section

III.A.3.

Third Parties that obtain Consent prior to collecting or using Cross-App Data for purposes other than

those set forth in Section VI are not subject to this Third Party Enhanced Notice Principle.

Commentary: When notice is provided in

application settings under these Principles, such

notice should be available from each location where settings are available. When notice is provided in an application privacy policy, such policy may be

provided within the application or may be provided on a mobile-optimized website that is linked from

the application.

Any requirement in this guidance to provide clear, meaningful, and prominent notice would not be

satisfied by providing notice hidden in lengthy

terms and conditions. Similarly, if enhanced notice is provided through the method set forth in Section III.A.2.a.ii, the link provided under Section

III.A.2.a.ii.1 must be distinct from the First Party’s link to its privacy policy. For example, this require- Transparency and control for cross-App Data 17

ment to provide a clear, meaningful, and prominent link to a disclosure could be satisfied with a new

link to specific language within a disclosure.

3. First Party Enhanced Notice

When First Parties affirmatively authorize any Third Party to collect and use Cross-App Data for pur-

poses other than those set forth in Section VI, the First Party should provide a clear, meaningful, and prominent link to a disclosure that either points to a choice mechanism or setting that meets Digital Ad- vertising Alliance specifications or individually lists such Third Parties. Such link should be provided:

(a) Before the application is installed, as part of the process of downloading an application

to a device, at the time that the application is

opened for the first time, or at the time Cross-

App Data is collected, and

(b) In the application’s settings or any privacy

policy.

A First Party should indicate adherence to these

Principles in such disclosure. A First Party does not need to provide a link to such disclosure in instances where the Third Party provides notice as described in Section III.A.2.a above or obtains Consent prior to collecting or using Cross-App Data for purposes other than those set forth in Section VI.

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Commentary: A First Party is only subject

to this Principle when it has affirmatively

authorized the Third Party to collect the data.

For the purpose of this Principle, in instances

where a Third Party may be collecting data

from a First Party, where the First Party has

not affirmatively authorized such collection,

there is not an obligation on the First Party to

provide notice of such collection.

Where a Third Party elects to satisfy Section

III.A.2.ii.1 or a First Party elects to satisfy

Section III.A.3.a by providing a link prior to

installation through an application market that

does not permit active links, the entity satisfies

this Principle if it provides an active link to

a privacy policy that contains the disclosure

described in Section III.A.1 and directs

consumers to the relevant section of the privacy

policy where the disclosure is located.

B. CONSUMER CONTROL

1. Third Party Choice

Third Parties should provide consumers with the

ability to exercise choice regarding their collec- tion and use of Cross-App Data for purposes other

than those set forth in Section VI or the transfer of such data to a non-Affiliate for such purposes. Such choice should apply to the Third Party’s collection Transparency and control for cross-App Data 19

and use of Cross-App Data from the device from

which or for which the choice is exercised. Such

choice should be described in the enhanced notice

described in Section III.A.2.a or should be available from the choice mechanism described in Section

III.A.2.b.i or from the Third Party’s individual list- ing in a First Party disclosure as set forth in Section III.A.3.

Commentary: A Third Party that provides

consumers access to a mechanism or setting offered by a platform or operating system that provides

the ability to exercise choice consistent with this Principle satisfies this Principle. Choice under this Principle applies to future data collection, use, and transfer for purposes other than those set forth in Section VI.

2. Consent for Cross-App Data Collection from

All or Substantially All Applications

(a) Consent: Entities should not collect and

use Cross-App Data through such entities’

provision of a service or technology

that collects Cross-App Data from all or

substantially all applications on a device, for

purposes other than those set forth in Section

VI, without Consent. Such Consent should

apply to the device from which or for which

the Consent is provided.

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(b) Withdrawing Consent: Entities that have

obtained Consent for collection and use of

such data for such purposes should provide

an easy-to-use means to withdraw such

Consent.

Commentary: Section III.B.2 applies to an

entity’s service or technology that collects all or substantially all Cross-App Data regardless of the specific applications installed on a device, and not to its other services or technologies. This standard is not specific to any particular type of service or technology.

Consent or a withdrawal of Consent under this

Principle applies to future data collection, use,

and transfer for purposes other than those set forth in Section VI. An entity that directs consumers

to their device or platform settings, if such settings allow consumers to provide or withdraw Consent

for the collection and use of Cross-App Data with

respect to a specific device, satisfies this Principle. As described in the definition of “Consent,” where

an entity has a relationship with a consumer

through an additional or different medium than the device to which Consent applies, Consent may be

obtained through any such medium.

Transparency and control for Precise location Data 21 IV. TRANSPARENCY AND CONTROL FOR

PRECISE LOCATION DATA

A. TRANSPARENCY

1. First Party Notice

First Parties should give clear, meaningful, and

prominent notice of transfers of Precise Location

Data to Third Parties, or Third Parties’ collection and use of Precise Location Data from or through a First Party’s application with the First Party’s affirma- tive authorization, for purposes other than those set forth in Section VI. Such notice should include clear descriptions of the following:

(a) The fact that Precise Location Data is

transferred to or collected by any Third Party;

(b) Instructions for accessing and using a tool

for providing or withdrawing Consent under

Section IV.B with respect to the First Party’s

transfer of Precise Location Data to Third

Parties and to the collection, use, and transfer

of such data by any Third Party that the

First Party affirmatively authorizes to collect

Precise Location Data from or through the

First Party’s application; and

(c) The fact that the First Party adheres to these Principles.

22 Transparency and control for Precise location Data First Parties should provide such notice on their own Web sites or accessible from the application from or through which the Precise Location Data is collected. Commentary: Under Section IV.A.1, a First Party

should provide notice of the fact that a Third Party collects data through the First Party’s application where such data collection is affirmatively

authorized by the First Party. First Parties are not required to provide further information about the

Third Party’s practices. Such further information

should be provided in the Third Party’s own notice as described in Section IV.A.2. For the purpose

of this Principle, in instances where a Third Party may be collecting data from a First Party, where the First Party has not affirmatively authorized such

collection, there is not an obligation on the First Party to provide notice of such collection.

2. Third Party Notice

Third Parties should give clear, meaningful, and

prominent notice of their Precise Location Data

collection and use practices for purposes other than those set forth in Section VI. Such notice should

include clear descriptions of the following:

(a) The fact that Precise Location Data is

collected;

(b) The uses of such data, including whether it

will be transferred to a non-Affiliate;

Transparency and control for Precise location Data 23

(c) Instructions for accessing and using the tool

for providing or withdrawing Consent under

Section IV.B with respect to the collection

and use of such data or the transfer of such

data to a non-Affiliate for purposes other than

those set forth in Section VI; and

(d) The fact that the entity adheres to these

Principles.

Third Parties should provide such notice on their

own Web sites or accessible from any application

from or through which they collect Precise Location Data.

3. First Party Enhanced Notice

In addition to providing notice as described in Sec- tion IV.A.1, First Parties should provide enhanced notice of Third Parties’ collection and use of Precise Location Data from or through a First Party’s ap-

plication with the First Party’s affirmative authoriza- tion, or a First Party’s transfers of such data to Third Parties, for purposes other than those set forth in Section VI. Such enhanced notice should be pro-

vided as set forth below in (a) and (b) or through another method or combination of methods that

provides equivalently clear, meaningful, and promi- nent enhanced notice:

(a) Notice of the Fact that Precise Location Data

Is Collected: First Parties should provide clear,

meaningful, and prominent notice of the

24 Transparency and control for Precise location Data fact that the First Party transfers to any Third

Party or authorizes any Third Party to collect

Precise Location Data from or through the

application:

(i) For a downloadable application, as

part of the process of downloading an

application to a device;

(ii) At the time that the application is

opened for the first time; or

(iii) At the time such data is collected.

(b) Link to Disclosure: First Parties should

provide notice through a clear, meaningful,

and prominent link to the disclosure

described in Section IV.A.1 that is presented:

(i) As part of the process of downloading

an application to a device and before

the application is installed, at the time

that the application is opened for

the first time, or at the time Precise

Location Data is collected; and

(ii) In the application’s settings or any

privacy

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