NETWORK ADVERTISING INITIATIVE

IN 2023, THE NAI'S SELF-REGULATORY PROGRAM FOCUSED ON: (1) HELPING COMPANIES UNDERSTAND THEIR COMPLIANCE OBLIGATIONS WITH RESPECT TO AN ACTIVE AND RAPIDLY CHANGING STATE LEGAL ENVIRONMENT AND CHANGES IN BROWSERS AND OPERATING SYSTEMS; (2) THE CREATION OF NEW GUIDANCE AND BEST PRACTICES FOR THE USE OF DEMOGRAPHIC DATA IN HEALTH ADVERTISING; (3) CREATING ENHANCED GUIDANCE FOR THE COLLECTION AND USE OF PRECISE LOCATION INFORMATION FROM SENSITIVE LOCATION THAT APPLY TO A GREATER NUMBER OF COMPANIES IN THE DIGITAL ADVERTISING ECOSYSTEMS; AND (4) FURTHER EXPANSION OF PUBLIC POLICY EFFORTS, ADVOCACY, AND OUTREACH ON A STATE AND FEDERAL LEVEL. IN 2023, THE NAI PARTICIPATED IN SEVERAL CROSS-INDUSTRY AND CROSS-TRADE GROUPS TO HELP CREATE AWARENESS OF NEW STATE PRIVACY LEGAL REQUIREMENTS, AS WELL AS PLANNING FOR THE FUTURE DEPRECATION OF THIRD-PARTY COOKIES, AND THE EVOLUTION OF ADDRESSABILITY. THE NAI IS AN ACTIVE PARTICIPANT IN TECHNOLOGY FOCUSED CROSS-INDUSTRY EFFORTS SUCH AS THE IAB TECH LAB PRIVACY AND REARC COMMIT GROUP, TCF STEERING GROUP, W3C, AND GOOGLE PRIVACY SANDBOX, KEEPING NAI MEMBERS APPRISED OF DEVELOPMENTS IN THESE GROUPS WHILE SPEAKING ON BEHALF OF THE MANY SMALL AND MEDIUM SIZED COMPANIES THAT REPRESENT NAI MEMBERSHIP. THE NAI HELD ITS ANNUAL MEMBER SUMMIT IN MAY 2023 IN SEATTLE, WA. SPEAKERS AND PARTICIPANTS INCLUDED MEMBER COMPANIES AND THEIR BUSINESS PARTNERS, LAW FIRMS, DATA AND PRIVACY EXPERTS, AND STATE AND FEDERAL REGULATORS. THE NAI HOSTED THE WASHINGTON ATTORNEY GENERAL FOR A KEYNOTE ADDRESS FOCUSED ON THE WASHINGTON MY HEALTH MY DATA LAW. THROUGH AN ADDITIONAL SERIES OF VIRTUAL AND IN PERSON ROUNDTABLES AND SALON STYLE EVENTS, NAI PROVIDED ITS MEMBER COMPANIES WITH THE LATEST INFORMATION ON EMERGING TECHNOLOGIES, REGULATORY AND LEGISLATIVE TRENDS, AND EMERGING BUSINESS MODELS.THE NAI COORDINATED MONTHLY WORKING GROUP MEETINGS TO DISCUSS CODE UPDATES, PRIVACY AND TECHNOLOGY ISSUES AND PRIVACY REGULATION AND LEGISLATION, INCLUDING THE USE OF PRECISE LOCATION DATA, INTERNATIONAL LEGISLATIVE AND REGULATORY DEVELOPMENTS, AND REGULATIONS PROMULGATED UNDER THE CALIFORNIA PRIVACY RIGHTS ACT (CPRA). IN JUNE 2023, THE NAI ANNOUNCED A SUSPENSION OF ITS SELF-REGULATORY CODE OF CONDUCT AND LAUNCHED A NEW INITIATIVE TO BUILD A SELF-REGULATORY FRAMEWORK THAT BETTER ALIGNS WITH NEW STATE CONSUMER PRIVACY LAWS AND REGULATORY ENFORCEMENT EFFORTS. THE NEW NAI FRAMEWORK WILL INCLUDE PRINCIPLES RELATED TO TRANSPARENCY, CHOICE, DATA MINIMIZATION, PURPOSE AND USE RESTRICTION, DATA SECURITY, AND OTHERS. IN ADDITION, THE NAI IS ACTIVELY WORKING TO INTRODUCE NEW GUIDANCE AND REQUIREMENTS REGARDING DATA MINIMIZATION AND USER CHOICE AND CONTROL. IN SEPTEMBER 2023, THE NAI RELEASED A COMPREHENSIVE LEGAL AND REGULATORY ANALYSIS OF SENSITIVE HEALTH INFORMATION USED IN DIGITAL ADVERTISING. THIS WHITE PAPER REGARDING HOW COMPANIES SHOULD IDENTIFY SENSITIVE DATA AND CONCLUDES THAT VIABLE PATHS REMAIN FOR COMPANIES TO ENGAGE IN HEALTH-RELATED TARGETED ADVERTISING, WHILE PROTECTING AND RESPECTING THE RIGHTS AND SAFETY OF CONSUMERS THEY SERVE. IN NOVEMBER 2023, THE NAI DEVELOPED AND ANNOUNCED A NEW RESOURCE FOR MEMBERS THAT OUTLINES HOW COMPANIES CAN UTILIZE DEMOGRAPHIC CONSUMER DATA FOR HEALTH-RELATED ADVERTISING. NAI LEGAL AND POLICY STAFF DEVELOPED THE REPORT, ENTITLED "DEMOGRAPHIC HEALTH ADVERTISING BEST PRACTICES." THIS GUIDANCE DOCUMENT HELPS COMPANIES BOLSTER PRIVACY PROTECTIONS AROUND SENSITIVE CONSUMER HEALTH INFORMATION WHILE ALSO PROVIDING FOR EFFECTIVE HEALTH ADVERTISING THAT BENEFITS CONSUMERS AND HEALTHCARE PROFESSIONALS. THROUGHOUT 2023, THE NAI WORKED WITH MEMBER COMPANIES TO ENHANCE AND UPDATE ITS GUIDANCE AROUND THE USE OF PRECISE LOCATION DATA FROM SENSITIVE LOCATIONS. THE NAI WORKED TO IMPLEMENT ITS EXISTING "NAI ENHANCED STANDARDS FOR PRECISE LOCATION INFORMATION SOLUTION PROVIDERS (ENHANCED STANDARDS)" FOR THE COMPANIES THAT PUBLICLY COMMITTED TO HONOR THEM, AND WORKED WITH POLICY MAKERS, REGULATORS, AND MEMBERS TO EDUCATE THEM ON THE STANDARDS. THE ENHANCED STANDARDS PROHIBIT THE USE, SALE, AND TRANSFER OF PRECISE LOCATION DATA FROM SENSITIVE PLACES, SUCH AS THOSE TIED TO RELIGIOUS WORSHIP, SENSITIVE HEALTHCARE SERVICES, MILITARY BASES, AND THOSE INDICATING LGBTQ+ IDENTITY. THEY ALSO RESTRICT COMPANIES FROM USING, SELLING, OR SHARING, IN THE ABSENCE OF A LEGALLY BINDING REQUEST, PRECISE LOCATION DATA FOR LAW ENFORCEMENT OR NATIONAL SECURITY PURPOSES. THE NAI FILED SUBSTANTIAL COMMENTS TO THE FEDERAL TRADE COMMISSION (FTC) IN RESPONSE TO THEIR NOTICE OF PROPOSED RULEMAKING TO UPDATE THE HEALTH BREACH NOTIFICATION RULE, RECOMMENDING THAT THE FTC REVISE THE DEFINITION OF HEALTH CARE SERVICES OR SUPPLIES, INCLUDE AD TECH COMPANIES THAT PROVIDE ANALYTICS TO PHR VENDORS IN THE DEFINITION OF SERVICE PROVIDER, AND SPECIFIC CHANGES TO THE DETAILED ELECTRONIC NOTICE REQUIREMENTS. THE NAI ALSO FILED DETAILED COMMENTS TO THE CFPB'S REQUEST FOR INFORMATION REGARDING DATA BROKERS AND OTHER BUSINESS PRACTICES INVOLVING THE COLLECTION AND SALE OF CONSUMER INFORMATION ("RFI"). IN ITS COMMENTS, THE NAI HIGHLIGHTED THE ROLE OF SELF-REGULATION IN PREVENTING CONSUMER HARM FROM DATA COLLECTED AND USED FOR ADVERTISING, THE ECONOMIC AND SOCIETAL BENEFITS OF DATA DRIVEN ADVERTISING, AND THE ROLE AD TECH COMPANIES PLAY IN ENHANCING COMPETITION IN THE DIGITAL ADVERTISING ECOSYSTEM. FINALLY, THE NAI SUBMITTED COMMENTS TO SENATOR CASSIDY IN RESPONSE TO HIS REQUEST FOR INFORMATION FROM STAKEHOLDERS ON IMPROVING AMERICANS' HEALTH DATA PRIVACY. IN ITS COMMENTS, THE NAI NOTES THE IMPORTANCE OF DATA DRIVEN HEALTH ADVERTISING TO CONSUMERS, PATIENTS, AND HEALTHCARE PROFESSIONALS, THE NEED FOR COMPREHENSIVE CONSUMER PRIVACY LEGISLATION FOCUSED ON PREVENTING HARMFUL OUTCOMES, AND THE NEED TO DISTINGUISH BETWEEN NON-SENSITIVE AND SENSITIVE INFORMATION AND PURPOSES.THE NAI WELCOMED EIGHT (8) NEW MEMBERS IN 2023, EXPECTED CONSOLIDATION IN THE INDUSTRY RESULTED IN A NET LOSS OF ONE (1) MEMBER OVERALL. THE NAI'S MEMBERSHIP INCLUDES STARTUPS, SMALL TO MEDIUM SIZED BUSINESSES, AND SOME OF THE LARGEST AND MOST IMPORTANT COMPANIES IN THE THIRD-PARTY DIGITAL ADVERTISING ECOSYSTEM. THE NAI IS ALSO WORKING MORE CLOSELY WITH RETAIL MEDIA NETWORKS, DATA COLLABORATION COMPANIES, AND PRIVACY VENDORS AS THEY EMBRACE A LARGER ROLE IN THE DIGITAL ADVERTISING ECOSYSTEM, LEVERAGING DATA TO HELP DELIVER BETTER ADVERTISING IN PRIVACY-PROTECTIVE WAYS.THE NAI SERVED ON THE GOVERNING BOARD AND STEERING COMMITTEE OF THE IAB EUROPE'S TRANSPARENCY & CONSENT FRAMEWORK (TCF), AN INDUSTRY TOOL THAT SUPPORTS COMPANIES WITHIN THE DIGITAL ADVERTISING ECOSYSTEM AS THEY MANAGE THEIR COMPLIANCE OBLIGATIONS WITH THE EU'S GENERAL DATA PROTECTION REGULATION (GDPR) AND EPRIVACY DIRECTIVE, ON THE BOARD OF PRIVACY FOR AMERICA, AND ON THE BOARD OF THE DIGITAL ADVERTISING ALLIANCE (DAA).