Saturday, 26 November 2011

ARTICLE 29 DATA PROTECTION WORKING PARTY: Opinion 2/2010 on online behavioural advertising



Behavioural advertising entails the tracking of users when they surf the Internet and the  building of profiles over time, which are later used to provide them with advertising matching  their interests. While the Article 29 Working Party does not question the economic benefits  that behavioural advertising may bring for stakeholders, it firmly believes that such practice  must not be carried out at the expense of individuals' rights to privacy and data protection.  The EU data protection regulatory framework  setting forth specific safeguards must be  respected. To facilitate and encourage compliance, the present Opinion clarifies the legal  framework applicable to those engaged in behavioural advertising.   In particular, the Opinion notes that advertising network providers are bound by Article 5(3)  of the ePrivacy Directive pursuant to which  placing cookies or similar devices on users'  terminal equipment or obtaining information through such devices is only allowed with the  informed consent of the users. The Opinion notes that settings of currently available browsers  and opt-out mechanisms only deliver consent in very limited circumstances. The Opinion
asks advertising network providers to create prior opt-in mechanisms requiring an affirmative  action by the data subjects indicating their willingness to receive cookies or similar devices  and the subsequent monitoring of their surfing behaviour for the purposes of serving tailored  advertising. The Opinion considers that users' single acceptance to receive a cookie may also  entail their acceptance for the subsequent readings of the cookie, and hence for the  monitoring of their internet browsing. Thus, to meet the requirements of Article 5(3) it would  not be necessary to request consent for each reading of the cookie. However, to keep data  subjects aware of the monitoring, ad network providers should: i) limit in time the scope of  the consent; ii) offer the possibility to revoke it easily and iii), create visible tools to be  displayed where the monitoring takes place. This approach would address the problem of  burdening users with numerous notices while ensuring that the sending of cookies and the  subsequent monitoring of Internet surfing behaviour for the  purposes of serving tailored  advertising only takes place with data subjects' informed consent.   Because behavioural advertising is based on the use of identifiers that enable the creation of  very detailed user profiles which, in most  cases, will be deemed  personal data, Directive  95/46/EC is also applicable. The Opinion comments on how advertising network providers  should comply with the obligations that arise from this Directive, notably, with respect to  rights of access, rectification, erasure, retention, etc. Taking into account that publishers may  share certain responsibility for the data processing that takes place in the context of
behavioural advertising, the Opinion calls upon publishers to share with ad network providers  the responsibility for providing information to individuals and encourages creativity and  innovation in this area. Given  the nature of the practice of behavioural advertising,  transparency requirements are a key condition for  individuals to be able to consent to the  collection and processing of their personal data and exercise effective choice. The Opinion  sets out the information obligations of advertising network providers/publishers vis-à-vis data  subjects, referring in particular to the ePrivacy Directive, which requires that users be  provided with "clear and comprehensive information".  The Opinion analyses and clarifies the obligations set forth by the applicable legal  framework. However, it does not prescribe how, from a technology point of view, such
obligations must be complied with.  Instead, in different areas, the Opinion invites industry to  undertake a dialogue with the  Article 29 Working Party with the view to put forward  technical and other means to comply with the framework as described in the Opinion as soon  as possible. Towards this end, the Article 29 Working Party  will contact stakeholders to  request their input. Entities that are not explicitly consulted are welcomed to send their  contributions to the Secretariat of the Article 29 Working Party.

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