Digital Advertising Alliance Releases Best Practices Around Privacy for Billions of IoT Connected Devices

DAA Best Practices Explain How Companies Should Provide Notice and Control Over Collection and Use of Connected Device Data

WASHINGTON, D.C. – June 15, 2023 – The Digital Advertising Alliance (DAA) today released new DAA Best Practices to help companies understand how the DAA Principles of its privacy self-regulatory program should be applied to billions of Internet of Things (IoT) connected devices, ranging from smart appliances to connected TVs, smartwatches, speakers, fitness sensors, and other connected devices.

“For more than a decade, the DAA’s self-regulatory programs have kept pace with rapid changes in the digital ecosystem by offering regular updates and guidance around emerging issues like mobile data, cross-device data, video and Addressable Media Identifiers,” said Lou Mastria, CEO of the DAA. “The release of the DAA Best Practices will kick off a creative ad specification process, so we can help consumers access privacy information and controls for connected devices through intuitive notices and consolidated user interfaces.”

The DAA Best Practices describe how companies should provide users with notice and control around the collection, use, and transfer of Connected Device Data for interest-based advertising and other covered purposes. According to the DAA Best Practices, both first parties and third parties should provide a link on their digital properties to an effective opt-out mechanism that allows consumers to exercise choice regarding the collection, use, and transfer of Connected Device Data for covered purposes. (Connected Device Data is data collected from or through a connected device about the use of a digital property or service by that device.)

“Given the complicated and still-emerging nature of the connected device space, the DAA has issued these best practices to drive forward the adoption of enhanced transparency and control for companies creating connected products and services,” continued Mastria. “Our goal is to extend the easy and widely recognized AdChoices experience from the desktop and mobile environments into this emerging space.”

According to Iot Analytics, there are approximately 14.4 billion IoT connected devices in use worldwide in 2022, and that number will nearly double to 27 billion devices by 2025. These best practices do not cover computers, tablets, smartphones, and mobile devices, which are already addressed by the DAA Principles and prior guidance.

"One of the greatest strengths of the DAA's self-regulatory program is the way its foundational Principles can be applied to new technologies and business models. When the DAA Principles were released more than a decade ago, the concept of connected devices was barely a glimmer in the public consciousness, but today's announcement expands that powerful and flexible framework to provide clear best practices around IoT device in use by consumers today," said Michael Signorelli, Partner, Venable LLP, which helped draft the best practices.

In the coming weeks, the DAA plans to convene a Working Group with stakeholders representing key trade associations, advertisers, publishers, ad tech providers, agencies, and device makers to consider actionable plans to operationalize the best practices. The Working Group will create and release technical implementation specifications for participants in the connected device ecosystem.

About the Digital Advertising Alliance

The Digital Advertising Alliance (DAA) is an independent not-for-profit organization which establishes and enforces responsible privacy practices for relevant digital advertising, while giving consumers information and control over the types of digital advertising they receive. The DAA runs the YourAdChoices, mobile AppChoices, PoliticalAds and programs. Underlying the DAA's efforts are the DAA Self-Regulatory Principles, including updates to address changing technologies and business models around multi-site, mobile, and cross-device data. Compliance with the DAA Principles is independently enforced for all companies in digital advertising by BBB National Programs and the Association of National Advertisers (ANA). The DAA is managed by a consortium of the leading national advertising and marketing trade groups, including the 4A's; American Advertising Federation; ANA; Interactive Advertising Bureau; and Network Advertising Initiative, with the advice of BBB National Programs.


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