October 2012
 

First Self-Regulatory OBA Enforcement Action Brought Against an Advertiser

The Online Interest-Based Advertising Accountability Program (OIAAP), the body charged with enforcement of the Self-Regulatory Principles for Online Behavioral Advertising, recently released five decisions following inquiries into the practices of Kia Motors America and the advertising networks that serve Kia ads. The OIAAP determined that certain Kia ads failed to comply with the OBA Principles' notice and choice requirements because they did not include an Advertising Option or AdChoices Icon in each ad. In particular, the OIAAP noted that two advertising networks, Specific Media and Rocket Fuel, had served Kia ads without giving consumers notice that they were receiving the ads based on their browsing history. In response to the self-regulatory enforcement, Kia has "instructed its media agency that it expects its third-party ad networks to comply with the OBA Principles, including serving the AdChoices Icon," and the ad networks similarly pledged to begin providing notice immediately on all interest-based ads in the Kia campaign. Another company, Microsoft Advertising's Atlas Solutions, an ad serving platform, was not included in the decision because its activities were not covered by the OBA Principles.

TIP: Companies whose ads are served based on browsing history should remember that the industry has agreed with the FTC to provide notice and choice. The AdChoices program, as enforced by the OIAAP, is one of the easier ways to accomplish this. When working with third parties to place your online ads, make sure that you understand how those ads are served, and where appropriate, ensure that proper notice and choice is being provided. Failure to do so could result in industry self-regulatory action. Non-compliance with the process could in turn be reported to the FTC, which has taken action in the past for OBA-related matters under its authority from the FTC Act.

 

If you have any questions regarding any matters discussed in this briefing, please contact any of the Winston & Strawn attorneys listed below or your usual Winston & Strawn contact.

 

Anthony E. DiResta
Brian L. Heidelberger
Brian D. Fergemann
Mary Hutchings Reed
Ronald Rothstein
Liisa M. Thomas
Monique Bhargava

Sara Skinner Chubb
Jason Gordon
Robert Newman
Marc Trachtenberg
Caroline Wenzke
Steven Wieker

These tips have been created for information and planning purposes. They are not intended to be, nor should they be substituted for, legal advice, which turns on specific facts.


Attorney advertising materials.

These materials have been prepared by Winston & Strawn LLPfor informational purposes only and are not legal advice. These materials do not constitute legal advice and cannot be relied upon by any taxpayer for the purpose of avoiding penalties imposed under the Internal Revenue Code. Receipt of this information does not create an attorney-client relationship. No reproduction or redistribution without written permission of Winston & Strawn LLP.

Along with thisbriefing, a library of all the Winston & Strawn LLP briefings published to date can be accessed by visiting the Publications Library section of Winston & Strawn LLP's Web site www.winston.com.

© 2012 Winston & Strawn LLP