International Coalition Calls for Ban on Surveillance Advertising

Calls Mount for a Ban on Surveillance-Based Advertising

A broad international alliance of consumer advocacy groups, digital rights organizations, and data protection specialists is intensifying demands for a prohibition on what is termed “surveillance-based advertising.”

The Core Objection

This form of digital advertising functions through extensive background data processing, collecting information about individuals’ online activities to construct detailed profiles. These profiles are subsequently utilized to determine which advertisements are presented to users, often through complex processes like real-time bidding auctions.

EU Leadership and Growing Pressure

The EU’s primary data protection authority has previously advocated for a ban on targeted advertising that relies on widespread tracking, citing numerous associated risks to individual rights.

Parliamentary Urgency

Furthermore, the EU Parliament has urged the implementation of stricter regulations concerning behavioral advertising practices.

Transatlantic Momentum

A U.S. coalition of privacy, consumer, competition, and civil rights groups similarly focused on microtargeting earlier this year. Consequently, lawmakers on both sides of the Atlantic are facing increasing pressure to address exploitative adtech practices, as consensus grows regarding the detrimental effects of mass-surveillance-based manipulation.

Rise of Pro-Privacy Alternatives

Simultaneously, there is a noticeable surge in the adoption of pro-privacy consumer technologies and services, reflecting a growing emphasis from both users and innovators on business models that prioritize data protection.

Accessibility and Popularity

The increasing popularity of these services demonstrates that alternative, rights-respecting digital business models are not only feasible but also gaining traction, with many offering freemium options.

Open Letter to Policymakers

In an open letter addressed to EU and U.S. policymakers, the international coalition – comprising 55 organizations and over 20 experts, including Privacy International, the Open Rights Group, and the Center for Digital Democracy – is urging legislative action.

A Call for a Ban

They specifically call for a ban on advertisements that depend on the “systematic commercial surveillance” of internet users to deliver what Facebook founder Mark Zuckerberg describes as “relevant ads.”

Consumer Sentiment and Concerns

The coalition challenges Zuckerberg’s framing, asserting that the majority of consumers do not desire to be monitored for targeted advertising.

Perception of Creepiness

Any perceived “relevance” is overshadowed by the unsettling and unpleasant experience of ad-stalking. Imagine the reaction of the average internet user if they could see the extensive databases used to profile individuals for commercial gain.

Survey Findings

A report examining consumer attitudes towards surveillance-based advertising, prepared by the Norwegian Consumer Council (NCC), reveals that only one in ten people view commercial data collection positively, and only one in five consider ads based on personal information acceptable.

Feelings of Impotence

A significant one-third of survey respondents expressed “very negative” feelings about microtargeted ads, while nearly half believe advertisers should not target ads based on any personal information.

The report also highlights a sense of powerlessness among consumers, with six out of ten feeling they have no choice but to surrender their data online.

EU Data Protection Framework and Enforcement

This finding is particularly concerning for EU policymakers, as the bloc’s data protection framework is intended to provide citizens with rights safeguarding them against being coerced into sharing their personal data.

Consent Requirements

Specifically, consent for data processing must be informed, specific, and freely given; it cannot be obtained through manipulative tactics or dark patterns.

Enforcement Gaps

However, despite these regulations, a majority of respondents feel they have no alternative but to accept online tracking, indicating an ongoing enforcement failure regarding numerous adtech-related complaints filed under the General Data Protection Regulation (GDPR) – some of which remain unresolved after over three years.

Addressing Enforcement Issues

EU lawmakers have acknowledged the challenges of GDPR enforcement and have proposed alternative enforcement structures in recent digital regulation proposals, such as those outlined in the Digital Services Act (DSA).

DSA as a Potential Vehicle

The coalition suggests the DSA as an ideal legislative framework for implementing a ban on surveillance-based ads.

Negotiations are ongoing to finalize the DSA proposal, but the EU Parliament could potentially champion a ban on surveillance ads, as it has the power to amend legislative proposals and must approve draft laws for adoption.

U.S. Legislative Action

“In the U.S., we urge legislators to enact comprehensive privacy legislation,” the coalition adds.

Further Research and Concerns

The coalition supports its call for a ban with another report from the NCC, detailing the concerns surrounding microtargeting and the broader issues associated with the adtech industry’s extensive data collection and trading practices.

Impact on Individuals and Competition

These concerns extend beyond individual privacy, encompassing the manipulation, discrimination, and exploitation of individuals and vulnerable groups. Furthermore, the report highlights the damage to digital competition, as adtech platforms and data brokers undermine publishers’ revenues and facilitate ad fraud.

Threat to Democracy

The report also contends that surveillance-based advertising poses a risk to democratic societies, fueling the spread of misinformation, creating security vulnerabilities, and even national security risks.

Alternative Models Exist

“This harms consumers and businesses, and can undermine the cornerstones of democracy,” the coalition warns.

“Although we recognize that advertising is an important source of revenue for content creators and publishers online, this does not justify the massive commercial surveillance systems set up in attempts to ‘show the right ad to the right people,’” the letter states. “Other forms of advertising technologies exist, which do not depend on spying on consumers, and cases have shown that such alternative models can be implemented without significantly affecting revenue.”

“There is no fair trade-off in the current surveillance-based advertising system. We encourage you to take a stand and consider a ban of surveillance-based advertising as part of the Digital Services Act in the EU, and the for U.S. to enact a long overdue federal privacy law.”

Industry Response and Future Outlook

This latest push against ‘toxic adtech’ has prompted responses from advertising giants like Facebook and Google, who have acknowledged the growing pro-privacy sentiment.

Facebook’s Strategic Shifts

This is evidenced by Facebook’s claimed ‘pivot to privacy,’ its plan to consolidate first-party data, and its interest in cryptocurrency.

Google’s Proposed Solutions

Similarly, Google is developing alternative adtech solutions to replace third-party tracking cookies. However, its proposed ‘Privacy Sandbox’ still involves grouping users into ‘interest’ buckets for ad targeting, raising concerns about privacy and competition.

Anticipating Regulation

Google’s actions may be a preemptive attempt to develop adtech that maintains targeting potency while potentially circumventing a ban on microtargeting.

The Need for Smart Legislation

Legislators must carefully draft laws to address the harms caused by surveillance-based advertising to prevent the perpetuation of manipulative practices.

Good Alternatives Available

The NCC’s report identifies “good alternatives” for digital advertising models that do not rely on systematic consumer surveillance, offering advertisers and publishers greater oversight and control.

Addressing Ad Fraud

The issue of ad fraud is often underestimated, but instances of Facebook admitting to inaccuracies in reported ad metrics highlight the problem.

A More Transparent Marketplace

“It is possible to sell advertising space without basing it on intimate details about consumers. Solutions already exist to show ads in relevant contexts, or where consumers self-report what ads they want to see,” stated Finn Myrstad, the NCC’s director of digital policy.

“A ban on surveillance-based advertising would also pave the way for a more transparent advertising marketplace, diminishing the need to share large parts of ad revenue with third parties such as data brokers. A level playing field would contribute to giving advertisers and content providers more control, and keep a larger share of the revenue.”