Strong Turnout at Summit Signals Industry Unity on Key Policy Issues

IAB hosted its 2025 Public Policy & Legal Summit in April in an event that brought together legal experts, policymakers, and leaders from across the digital advertising ecosystem. With major changes looming in privacy, AI, competition, and advertising standards, the Summit served as a timely forum for thought leadership, building industry relationships and engaging with regulators to help shape the future of responsible digital policy.

One of the day’s standout moments came during a fireside chat between IAB General Counsel Michael Hahn and Christopher Mufarrige, the newly appointed Director of the FTC’s Bureau of Consumer Protection. Mufarrige signaled a shift toward a more measured, evidence-based approach to enforcement, urging regulators to look past charged terms like “surveillance advertising” and instead focus on actual consumer harm. He emphasized the need for policies rooted in objective data and a clearer understanding of how digital advertising serves both consumers and the broader economy.

That focus on practicality and nuance carried through in a panel of legal experts, who broke down recent FTC enforcement actions involving sensitive data, location tracking, and vendor oversight. From there, discussions expanded to address the fast-changing state privacy landscape. Leaders from Paramount, Foot Locker, Samsung Ads, LVMH, and others offered real-world strategies for navigating new state privacy laws. Breakout sessions explored the European privacy environment, the future of responsible AI, and the evolving role of consumer privacy signals in the U.S.

As the only trade association that brings together the full digital advertising distribution chain, IAB is proud to create space for these important conversations. Our commitment to equipping members with the insights, tools, and advocacy they need remains stronger than ever.

Digital Advertising Fuels 28.4 Million U.S. Jobs and $4.9 Trillion in Economic Activity

As conversations turned to the real-world stakes, IAB released new data to underscore the industry’s role in powering jobs and growth.

According to the study Measuring the Digital Economy: Advertising, Content, Commerce, and Innovation, the digital economy now contributes $4.9 trillion to U.S. GDP—18% of the total—and supports 28.4 million jobs across all 435 congressional districts. Since 2020, digital employment has grown nearly 12 times faster than the broader labor market. Full-time creator jobs alone have surged from 200,000 to over 1.5 million.

And these gains aren’t confined to Silicon Valley or big tech brands. While the top 10 congressional districts have higher concentrations of internet-based employment, they account for just one-eighth of the total. Job growth is coming from small businesses, platform workers, ecommerce entrepreneurs, and independent creators using digital tools to drive revenue and local hiring in communities nationwide.

As Congress debates new rules around privacy, AI, and competition, these numbers serve as a vital reminder: responsible digital advertising is not just an industry—it’s a jobs engine and a pillar of American economic strength. Later this month, IAB will take these findings to Capitol Hill to ensure lawmakers have the facts they need to craft thoughtful, forward-looking policies that protect innovation and consumer trust.

IAB Urges Congress to Enact National Privacy Law That Balances Privacy Protection and Innovation

That urgency is guiding IAB’s top legislative priority: securing a strong, clear national privacy framework.

Previous proposals like the American Data Privacy and Protection Act (ADPPA) and American Privacy Rights Act (APRA) gained momentum but ultimately fell short. Key sticking points included whether federal law should preempt state laws, whether individuals should be allowed to sue for violations, and how to divide enforcement authority between federal and state agencies. IAB and others also flagged the risk that vague language or overly broad restrictions could hurt small businesses, nonprofits, and creators who rely on responsible data use to grow.

Most recently, the launch of a new House Energy & Commerce Working Group offers fresh momentum. While the effort isn’t yet bipartisan, it’s a promising step—and IAB is hopeful that leaders from both parties will come together to create a privacy framework that protects consumers while balancing innovation and the ad-supported internet.

IAB submitted a detailed letter outlining practical recommendations. We called for clear definitions of data roles—like controllers and processors—modeled on successful state laws. We urged Congress to preempt conflicting state standards and avoid disrupting key use cases like loyalty programs or culturally relevant advertising. On data minimization, we emphasized the need for a reasonable, purpose-based standard—one that limits collection to what’s necessary for disclosed uses and meets reasonable consumer expectations, but avoids overly rigid frameworks that could undermine personalization, innovation, and consumer choice. We also recommended that enforcement remain with expert agencies like the FTC and state attorneys general—not through a sweeping private right of action that could overwhelm courts.

The formation of the new working group shows that Congress is taking privacy seriously. IAB stands ready to partner with policymakers to help pass a law that protects consumers, supports businesses, and keeps the digital economy strong and fair for all.

As always, IAB is doing the work on the ground. More than 1,300 companies already rely on the IAB Multi-State Privacy Agreement to navigate nearly 20 different state privacy laws. It’s clear evidence that the business community is committed to protecting privacy while finding practical ways to operate across a fragmented legal landscape. But it also underscores the need for a more unified, workable national framework.

Small Businesses Head to Capitol Hill to Defend the Ad-Supported Internet

As lawmakers debate the future of the digital economy, Internet for Growth (I4G) is making sure small business and creator voices are part of the conversation. An initiative of IAB, I4G champions the role of digital advertising in helping entrepreneurs build brands, reach new markets, and grow jobs in communities across the country.

In May, I4G brought small business owners and creators to Washington, D.C., for its annual National Small Business Week Fly-In. Representing industries from hospitality and construction to media, fashion, and interior design, the group met with 21 congressional offices—including Speaker Mike Johnson (LA), Senators Shelley Moore Capito (WV), John Kennedy (LA), and Raphael Warnock (GA), and Representatives Buddy Carter (GA-1), Lucy McBath (GA-7), and Riley Moore (WV-2).

During meetings, coalition members stressed that digital advertising isn’t just a tool for Big Tech—it’s a vital engine for small businesses, creators, and startups. They urged Congress to pass a strong national privacy law that preempts state regulations and protects the responsible use of personalized advertising. Members also discussed new digital ad taxes that would disproportionately hurt small firms and local media outlets.

With thousands of supporters across the country, I4G has facilitated nearly 200 meetings with federal and state lawmakers and reached a nationwide audience through digital campaigns and earned media—amplifying the value of advertising, media, and marketing to every American.

And we’re just getting started. Internet for Growth will continue building connections between policymakers and the small business community—ensuring that Main Street voices help shape the future of the internet

IAB Urges Supreme Court to Clarify Outdated Video Privacy Law

Also in May, IAB joined the National Retail Federation in filing an amicus brief in National Basketball Association v. Salazar, urging the Supreme Court to clarify the scope of the Video Privacy Protection Act (VPPA) and align the law with modern technology and consumer expectations. Originally enacted in 1988 to protect the privacy of physical video rental records, the VPPA is now being stretched to cover digital platforms—raising significant legal uncertainty for publishers, advertisers, and content providers across the internet.

At issue is whether websites and apps that host or embed video content and use standard tools—such as pixels, cookies, or analytics software—can be considered “video tape service providers” under the law. Conflicting court rulings and a growing wave of class-action lawsuits have exploited ambiguities in the statute.

In its brief, IAB argues that these expansive interpretations go far beyond the law’s original intent and could have serious consequences. A broad application of the VPPA could discourage platforms from offering video features, limit personalized advertising, or lead to the removal of free, ad-supported content—especially harming smaller publishers and businesses that rely on these tools to grow and compete.

IAB supports strong privacy protections, but they must be rooted in legal clarity and reflect how digital platforms actually function today. We’re urging the Court to hear the case, resolve the split between the circuits, and restore the VPPA to its intended scope.

FTC Delays “Click-to-Cancel” Rule, Reflecting IAB’s Ongoing Advocacy

After nearly two years of pushing back on the FTC’s proposed overhaul of subscription service rules, IAB welcomed the Commission’s recent decision to delay its sweeping “Click to Cancel” mandate. Officially known as the Negative Option Rule, the regulation was set to take effect last month but has been postponed until July 14, 2025, following strong industry concerns and legal challenges.

At first glance, the rule may seem simple—to make subscription cancellation as easy as signing-up. But in practice, it creates major challenges, limiting how businesses can offer consumers additional choices, incentives, or helpful information during the process.

These restrictions would disrupt proven customer retention strategies and penalize legitimate businesses that rely on subscriptions to deliver value. Many ad-supported services depend on flexibility to personalize user experiences and keep pricing accessible. A rigid, one-size-fits-all rule banning win-back offers or loyalty incentives could degrade the user experience and reduce access to digital tools that benefit everyday consumers.

We’ve explained that digital subscriptions are vital for creators, small businesses, and direct-to-consumer brands. They support jobs, provide flexible access to essential services, and help keep the internet affordable and open. The FTC’s rule, if left unchanged, could put that progress at risk. That is why IAB and other organizations filed a legal challenge, which is now under review by the Eighth Circuit Court of Appeals.

The FTC’s postponement is a welcome signal that the agency may be open to revisiting key concerns. While the rule is set to take effect on July 14, 2025, the Commission has indicated it may consider amendments if enforcement reveals unintended consequences or practical challenges. IAB will continue advocating for a clearer, more balanced framework—one that targets bad actors without stifling innovation or placing undue burdens on responsible businesses.

IAB Defends Innovation in the States as Privacy Rules Multiply

While federal privacy law remains a top priority, IAB is engaged in state-level policymaking—working with trade partners to shape smart digital advertising rules. Right now, California and New York are demanding particular attention due to sweeping proposals that could affect nearly every digital business.

In California, IAB submitted comments on proposed regulations for Automated Decision-Making Technologies (ADMTs) under the state’s privacy law. We urged regulators to focus safeguards on truly high-risk uses—like employment or credit decisions—and to clarify that “significant decisions” should apply only to individual consumers, not businesses. As written, the rule is vague enough to extend into business-to-business contexts, stretching beyond the California Consumer Privacy Act’s intent. We also raised concerns about an overly broad definition of “sensitive location,” which could impose compliance burdens on routine marketing. The draft rule sweeps in locations like schools, pharmacies, food pantries, union halls, political offices, and legal aid centers—meaning basic location-based ads, like an ad for a coffee shop near a college or a campaign flyer near a polling site, could trigger regulatory obligations and chill lawful commercial or political speech. We also objected to a proposal to make the currently optional “Opt-Out Request Honored” disclosure mandatory—a confusing and costly shift for small and mid-sized businesses, especially without a clear standard for what qualifies as a valid signal.

California’s DELETE Act also remains a serious concern. In comments submitted last week, IAB and other ad trade groups warned that proposed rules implementing the DELETE Act could exceed the state’s legal authority and lead to unintended harms. The regulations would expand the definition of “data broker” so broadly that many consumer-facing brands could be forced to register, even if they have a direct relationship with the consumer—undermining the law’s intent. Additional provisions could enable mass deletion requests by unauthorized agents, invite security risks, and conflict with existing privacy regulations. Taken together, the rules may jeopardize consumer trust, erode free expression, and hinder basic advertising and analytics functions that support a free, open internet.

Meanwhile, in New York, the proposed New York Privacy Act (S3044) would impose sweeping new restrictions on data-driven services without clear standards or enforcement clarity.

The bill introduces vague and inconsistent definitions for key terms that deviate from those used in nearly 20 other states—making it difficult for businesses to adopt a uniform compliance approach. It also imposes rigid data minimization requirements that could limit routine personalization, product improvements, or fraud prevention efforts. On top of that, the bill would require processes for New York residents—driving up compliance costs and increasing legal risk. IAB joined leading ad and media organizations in a letter of concern, warning that the bill would hurt consumers, disadvantage smaller publishers, and conflict with existing state and federal frameworks. As drafted, the legislation could undermine access to free, ad-supported content and create a fragmented patchwork of compliance obligations across states.

As more states consider their own approaches to data, advertising, and AI, IAB remains a trusted voice on the ground—engaging with policymakers, educating stakeholders, and fighting for rules that empower consumers without cutting off the digital tools they rely on every day.

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The future of digital media is back in Palm Springs from February 1-3, 2026. Join the brightest minds and boldest voices at the 2026 IAB Annual Leadership Meeting, where industry leaders, disruptors, and visionaries gather to shape the year ahead.

Across three immersive days, dive into agenda-setting conversations, candid fireside chats, and dynamic breakouts that tackle the most pressing topics: AI, measurement & addressability, privacy, commerce media, the creator economy, and more.

This is where decisions are made, strategies are born, and the industry sets its course. If you want to lead the future, it starts here.

The post 2026 IAB Annual Leadership Meeting appeared first on IAB.

The Digital Economy Surges to $4.9 Trillion, Supporting 28.4 Million Jobs Nationwide

Interactive Advertising Bureau (IAB) is proud to release the fifth edition of its long-running economic research series, Measuring the Digital Economy: Advertising, Content, Commerce, and Innovation.

This landmark report—published about every four years—offers a comprehensive view of how the internet is transforming the American economy. The latest findings show the Digital Economy has more than doubled since 2020, now reaching $4.9 trillion—18% of U.S. GDP—and supporting 28.4 million jobs across all 435 congressional districts.

Designed for policymakers, business leaders, and technology professionals, the report illustrates how digital innovation fuels job growth, broadens economic opportunity, and touches every corner of the country.

Download the Report

Key Findings at a Glance

• $4.9 Trillion in GDP Impact: The Digital Economy now makes up 18% of U.S. GDP, up from 11% in 2020.
• 28.4 Million Jobs Nationwide: Internet-related jobs are growing 12x faster than the overall labor market.
• Every District, Every Sector: Digital jobs exist in all 435 congressional districts, not just in tech hubs.
• Creator Economy on the Rise: Over 1.5 million Americans now work full-time as digital creators—7.5x growth since 2020.
• Democratized Workforce: Nearly 70% of job growth comes from independent creators, e-commerce entrepreneurs, platform earners, and integrated digital firms.

Why It Matters: Policy and Economic Impact

The digital economy is not just a catalyst for growth—it is a cornerstone of America’s economic engine. From creators and small businesses to global platforms, digital innovation is enabling people and enterprises of all sizes to thrive.

To further examine the policy implications of these findings, IAB will host a Capitol Hill briefing for congressional staff on June 26 in Washington, D.C. This timely discussion will focus on how forward-thinking policy can support continued growth, safeguard innovation, and extend the benefits of the digital economy to every community across the country.

As lawmakers shape the future of digital regulation, Measuring the Digital Economy offers essential insights for building smart, inclusive, and innovation-friendly policies.

This is the fifth edition of IAB’s economic research series, produced about every four years. It is authored by John Deighton, Harold M. Brierley Professor of Business Administration Emeritus, Harvard Business School, and Principal Research Consultant Leora Kornfeld.

View the Press Release

Download

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Today, Interactive Advertising Bureau (IAB), the digital media and marketing trade association, released the fifth edition of its long-running economic research series, Measuring the Digital Economy: Advertising, Content, Commerce, and Innovation, led by John Deighton, Harold M. Brierley Professor of Business Administration Emeritus, Harvard Business School.

The quadrennial study, first published in 2008, tracks the economic impact of the internet on America. This year’s headline: the Digital Economy has doubled since 2020, reaching $4.9 trillion. That’s 18% of U.S. GDP.

It’s also driving employment at a rapid clip. Internet-related jobs are growing 12 times faster than the broader labor market. Since 2020, the Digital Economy has expanded at 19% annually, while the total U.S. economy grew at 7%.

A National Job Growth Engine, 28.4 Million Strong

Back in 2008, internet-driven employment made up just 3 million jobs. Today, that number has grown to more than 28.4 million.

Of those, 11.2 million are directly tied to digital economy work. Another 17.2 million are found in industries that rely on digital infrastructure—education, entertainment, banking, retail, public services, and more.

Creators Are Driving the Fastest Growth

Digital creators and social media influencers — who generate content and build audiences for a living — now account for more than one in 10 full-time internet-dependent jobs in the U.S.

Today, the full-time equivalent of more than 1.5 million Americans work as digital creators — a number that has multiplied nearly eightfold since 2020. While the traditional media sector is expanding at roughly 5% annually, the creator sector is now growing at five times that pace.

“The creator economy has clearly become a major factor in the digital growth story, driving spend, engagement, culture, and of course, employment,” said David Cohen, CEO, IAB. “The impact is felt across the ecosystem, shifting the way that we think about information, entertainment, commerce, and community. In some ways, it has become a self-fulfilling prophecy. The more that creators succeed, the stronger the platforms they use become,” said Cohen.

A Digital Footprint in Every District

Digital employment has reached all 435 congressional districts. Silicon Valley and the other top 10 Congressional Districts may have higher concentrations of Internet-dependent employment, but they account for only about one-eighth of all U.S. digital economy jobs. This isn’t just a coastal or urban story — digital work is happening in cities, suburbs, and small towns across the country.

“The Digital Economy has become a foundational part of American GDP,” said Cohen. “And the exponential effects of generative and agentic AI are just beginning. Now is the moment for policymakers and regulators to understand the scale of this shift and ensure the foundation and infrastructure are in place to keep driving innovation forward.”

To help advance that understanding, IAB will host a Capitol Hill briefing on June 26 in Washington, D.C., focused on how digital policy can support continued job growth and extend the benefits of the internet economy to more communities nationwide.

A Broader Base of Economic Opportunity

The Digital Economy isn’t confined to the largest players. It includes everyone from Fortune 10 companies to independent creators building businesses on their own terms.

“The reach and infrastructure created by e-commerce platforms and integrated firms have enabled a self-sustaining, democratized economy,” said Deighton. “Whether it’s a solopreneur or a large enterprise, the opportunity is real and growing.”

Where Growth Is Coming From

Nearly 70% of digital job growth is concentrated in four key segments:

• Digital creators building businesses through content and community
• Platform workers using services like DoorDash, Uber, Instacart, and Airbnb
• Online merchants growing their businesses through e-commerce marketplaces
• Integrated firms like Amazon, Meta, Alphabet, and Microsoft operating across infrastructure, services, and consumer tools

Access the Full Report

About the Study

This is the fifth edition of IAB’s economic research series, produced about every four years. It is authored by John Deighton, Harold M. Brierley Professor of Business Administration Emeritus, Harvard Business School, and Principal Research Consultant Leora Kornfeld.

The report analyzes the size, structure, and impact of the Digital Economy in the United States, spanning advertising, content, commerce, and infrastructure.

About IAB
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and collaboration of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com / mvaughan@kcsa.com

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Trusted Execution Environments in Digital Advertising: A Pathway to Enhanced Data Privacy, Security, and Regulatory Compliance is a new whitepaper released in conjunction with the 2025 IAB Public Policy and Legal Summit. It offers public policy, government affairs, and technology professionals a clear look at how TEEs align with key regulatory principles, support secure data use, and promote innovation through privacy-by-default system design.

The post Trusted Execution Environments in Digital Advertising: A Pathway to Enhanced Data Privacy, Security, and Regulatory Compliance appeared first on IAB.

The IAB Video Compliance Brief, a new quarterly series from the IAB Media Center, Public Policy, and Legal Affairs teams, breaks down the latest developments and what they mean for brands, agencies, and publishers. Stay informed on how to protect your campaigns, avoid compliance risks, and adapt your video ad strategies.

This edition covers:

• Data Privacy and Advertising Regulations Update
• New FTC Rules on Subscriptions and Negative Option Billing
• Increased Scrutiny on Data . . .
  

  Claim your free account to continue reading. Log In or Create Account   If you have any issues, please contact us.

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  ]]> https://www.iab.com/blog/public-policy-newsletter-december-2024/ Thu, 12 Dec 2024 18:03:07 +0000 https://www.iab.com/?post_type=iab_blog&p=189900 Welcome to IAB’s Public Policy Newsletter Welcome to IAB’s end-of-year Public Policy Newsletter, a wrap-up of the biggest issues our industry faced and IAB’s advocacy for the digital advertising industry in 2024. Despite the recent election of a new President and Congress, publishers, brands, agencies, and ad tech companies will face many of the same … Continued

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  ]]>

  Welcome to IAB’s Public Policy Newsletter

  Welcome to IAB’s end-of-year Public Policy Newsletter, a wrap-up of the biggest issues our industry faced and IAB’s advocacy for the digital advertising industry in 2024. Despite the recent election of a new President and Congress, publishers, brands, agencies, and ad tech companies will face many of the same challenges and opportunities next year. IAB will be there to support our members.

  Getting Data Privacy Rights Right

  

  In 2024, IAB members were hopeful that a new national data privacy bill would correct mistakes of the American Data Privacy and Protection Act (ADPPA) in the previous Congress. Although ADPPA represented a step forward – the most serious effort so far to solve a complicated patchwork of state laws – it contained loopholes for conflicting state laws, restrictions on ordinary customer data and personalized advertising, as well as a “private of action” and overlapping enforcement that would lead to more fees, fines and frivolous lawsuits, including for small businesses.

  Unfortunately this year’s American Privacy Rights Act (APRA) missed another opportunity to protect consumers, innovation, jobs and the economy. Instead of preventing a private right of action, APRA expanded it, as well as definitions of “sensitive data.” Without anonymous browsing information, for example, many small businesses and publishers who rely on targeted ads or ad revenue would cease to exist. APRA’s definition of a small business would have subjected even the smallest to the same regulations as the world’s biggest companies. In Europe, similar regulations, such as “data minimization” rules prohibiting data collection and processing for legitimate purposes, have stifled innovation and investment.

  IAB strongly supports a federal law to protect consumer data and punish bad actors, and we have lent our expertise to improve both ADPPA and APRA – which failed to emerge from the House Energy and Commerce Committee this year. However, as we continue to advocate for a solution to a complex patchwork of state laws, no federal law is preferable to a bad one jeopardizing our country’s technological and economic leadership. IAB is also working to harmonize state laws. Some already in effect, like Virginia’s, give consumers new rights to control their data, while also supporting digital advertising and the online sharing economy. Others set to take effect in 2025, such as Maryland’s, are poised to be even more restrictive and punitive than any existing today, underscoring the urgent need for a federal bill that preempts state regulations.

  Related Coverage:
  Don’t Sleep On Maryland’s Strict New Data Privacy Law (AdExchanger)
  Why a Landmark Kids Online Safety Bill That Passed the Senate is Still Deeply Divisive (NBC News)
  U.S. Data Privacy Proposals Are Anti-Business and Pro-Censorship (Ad Age)

  A Turning Point at the FTC

  

  With the Senate focused on narrower children’s safety measures, the online privacy debate has largely taken place in the closely divided House of Representatives, a dynamic that will continue next year. However, with a new party in control of both chambers, the prospects for a preemptive federal data privacy bill without a private action may be greater. There will be new leadership at the Federal Trade Commission (FTC) too.

  Under its current leadership, the FTC has portrayed digital advertising as inherently unfair and deceptive, and in the absence of congressional data privacy legislation, sought to enact sweeping rules for “commercial surveillance.” Proposed rules to punish a few companies are so broad they could criminalize the internet. More recently, the FTC issued a report characterizing popular social and streaming platforms as widespread consumer harms. In reality, audio, video, gaming, and other online platforms have lowered barriers for entrepreneurs and creators of all backgrounds.

  “We are disappointed with the FTC’s continued characterization of the digital advertising industry as engaged in ‘mass commercial surveillance,’” said David Cohen. “Nothing could be further from the truth, as countless studies have shown that consumers understand the value exchange and welcome the opportunity to have access to free or highly subsidized content and services.”

  Beyond the buzzwords, the FTC’s recent report acknowledges that free, ad-supported content across various platforms depends on common marketing data to be timely and relevant. The agency highlights the efforts media platforms make to safeguard their users and underscores the need for national data privacy legislation to establish consistent, fundamental protections for everyone – just like IAB and our members do.

  Under new leadership, proposed rules for “commercial surveillance” and other misguided policies may not survive. However, digital advertising is expected to remain a focus. President Trump’s nominee to head the FTC has promised to scrutinize “Big Tech” for online speech violations, while his nominee for the Federal Communications Commission (FCC) has pledged to investigate social media, search, and internet companies. IAB has consistently urged regulators to protect Americans’ access to low-cost digital advertising tools and ad-supported media. We support consumer protection and free speech, choice and competition in the marketplace, and look forward to helping the incoming Administration to understand the importance of digital advertising to jobs and economic growth.

  Fighting to Protect the Digital Economy

  

  Looking ahead, we hope to see less partisanship and more collaboration in Congress and at the FTC. In the meantime, IAB will continue to defend digital advertising, upholding the rights of our members and their customers to communicate and conduct commerce online. As part of these efforts, we joined a coalition of leading trade associations to file suit against the FTC, challenging its recent rule changes for subscription renewals.

  Under its current chair, the FTC has taken a dramatic turn from previously announced rulemaking for “negative options,” a practice where consumers continue to receive subscription services unless they cancel. Newspapers, magazines, delivery services, gyms and other businesses have relied on the model for decades. In the digital age, as consumers have become accustomed to quick, convenient transactions, recurring subscriptions have become more popular and important to the U.S. economy. Start-up direct-to-consumer brands can develop reliable revenue, grow and hire. For less than the price of a CD, you can purchase a monthly subscription to an unlimited selection of music.

  IAB supports updating subscription rules to prevent abuse. However, like other challenges to digital advertising and e-commerce, the FTC’s overreach—based on an unfounded assumption of widespread harm—poses a significant threat to the vitality of the online ecosystem. In our lawsuit, IAB contends that the agency bypassed required legal procedures for rulemaking, neglected essential economic analysis, and excluded meaningful public input.

  In administrative hearings this year, a federal judge agreed with IAB and other stakeholders that proposed changes could result in compliance costs far exceeding the $100 million threshold requiring further study. Nevertheless, the FTC ignored the evidence to speed ahead with new rules before a presidential election. The costs and complexity of implementing them could cause providers to abandon the subscription model altogether, representing a true harm to consumers, contrary to the FTC’s mission.

  IAB supports punishing bad actors who abuse the public’s trust and will keep fighting to ensure the benefits of the online economy for everyone.

  Related Coverage:
  IAB, Cable Providers Sue FTC to Cancel “Click to Cancel” (Tech Target)
  Business Groups Protest FTC’s New Click-to-Cancel Rule, IAB Sues (Retail TouchPoints)
  

  Small Businesses Educate Policymakers

  

  Internet for Growth is a nationwide coalition of small businesses and creators raising awareness of digital advertising issues for policymakers. Retailers, restaurateurs, realtors, and others, sharing their online success stories and concerns about misguided advertising policy, have been instrumental in stopping bad bills in Congress and state capitals.

  In virtual and in-person meetings, the media, and letters to federal representatives, thousands have helped to convince lawmakers in Washington that the American Privacy Rights Act (APRA) would raise ad prices during a time of severe inflation, tilt the playing field in favor of big companies, and deprive Americans of choice and convenience. Congressional leaders who rejected the bill cited the concerns of small businesses.

  In 2024, Internet for Growth sprang into action to defeat similar bills in Vermont and Maine, a digital ad tax in Nebraska, and a California state bill that would have excluded small businesses from AI marketing and advertising tools. At IAB’s Congressional Education Series this summer, Internet for Growth members educated congressional staff about the value of digital advertising to jobs and the economy in their local communities.

  Appearing via video, Frank Swoboda, owner of Corner Booth Media in Spokane, Washington, emphasized the critical role of online ads for small businesses and nonprofits in helping students access financial aid. Oma Christina, Founder and CEO of The Hair Chest in Columbus, Ohio, highlighted how affordable social media and search engines enable her to manage marketing independently and generate enough revenue to hire an assistant. Lauren Spatafore, owner of Lunatic Fringe Hair Salon in Salt Lake City, Utah, noted that clients of all ages use social media to discover her services, and online advertising and marketing is becoming an increasingly popular, in-demand career among young people.

  Internet for Growth needs the support of more IAB members to reach a wider audience and make a difference in the most important digital advertising issues today. Policymakers are listening. To get involved, please contact Executive Director Brendan Thomas at brendan@internetforgrowth.com.

  Related Coverage:
  The American Privacy Rights Act Will Hurt Utah Business Owners Like Me (Salt Lake Tribune)
  Congress Should Balance Privacy Protections with Small Business Needs (Colorado Newsline)
  

  IAB Public Policy and Legal Summit 2025

  

  IAB Public Policy and Legal Summit is back! Last year’s event was a sold-out success, and now is your chance to secure your spot. Don’t miss out on this essential gathering where leaders from advertising, media, technology, and government come together to tackle the most pressing legal, policy, and technical challenges facing our industry.

  Join IAB’s Public Policy Council

  IAB holds regular meetings with members of its Public Policy Council. If you are interested in getting involved, please email Michael Hahn, Executive Vice President, General Counsel at IAB, IAB Tech Lab at michael.hahn@iab.com.

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  ]]> https://www.iab.com/blog/navigating-privacy-challenges-digital-advertising/ Fri, 08 Nov 2024 15:42:44 +0000 https://www.iab.com/?post_type=iab_blog&p=189288 The IAB held its inaugural Privacy Compliance Salon on September 22, 2024, in downtown Los Angeles, California. The Privacy Compliance Salon is an intimate salon-style event that brings together cross-functional privacy leaders in the digital advertising industry for thought-provoking and practical discussions around today’s most challenging privacy compliance issues. Conversations discussed digital advertising data flows, … Continued

  The post Navigating the Privacy Challenges in Digital Advertising: Key Takeaways from the IAB Privacy Compliance Salon appeared first on IAB.

  ]]> The IAB held its inaugural Privacy Compliance Salon on September 22, 2024, in downtown Los Angeles, California. The Privacy Compliance Salon is an intimate salon-style event that brings together cross-functional privacy leaders in the digital advertising industry for thought-provoking and practical discussions around today’s most challenging privacy compliance issues.

  Conversations discussed digital advertising data flows, consent signals, and first-party data activation. Participants also had invigorated and spirited conversations on the privacy challenges relevant to data clean rooms. The day also covered trends, challenges, and practical tips in health-related digital advertising. In addition, with the rapid evolution of technologies like AI-driven advertising, it’s crucial for privacy practitioners to stay ahead of the curve. From all the deep-dive conversations, it is critical that privacy professionals should continue to ask probing questions to your technology partners and strengthen foundational data governance practices.

  In this blog post, we will highlight some of the key takeaways from this year’s Salon, and of course, we hope to see you at the next one.

  Health-Related Digital Advertising
  The definition of health data is rapidly expanding under the existing and newly enacted privacy laws. Different statutes have different definitions, and the fine line of what’s in scope is often context dependent, especially for the digital advertising industry.

  • Context matters. When evaluating whether certain data constitutes health data, a myriad of factors should be considered, including why and how the data is collected, which statutory requirements are applicable, and how it is used. The devil is in the details, and one should dive deep to evaluate the risks fully: are the data points used for contextual advertising or off-site targeting? How is the data labeled in the backend? Are there any further health status inferences drawn? Is the use of the data consistent with consumers’ reasonable expectations? All these factors change the analysis.
  • Hashing doesn’t make personal data anonymous. When being told personal data is anonymous or de-identified, one should ask more questions to clarify whether the data is pseudonymized or can readily be re-identified. Encryption or hashing doesn’t make personal data anonymous, especially if the identifier is later used for retargeting. De-identification under one statute (e.g., HIPAA) may not satisfy other statutory requirements.
  • Think creatively. Businesses should begin examining creative ways of targeted advertising that don’t use health data points. For instance, look at areas with higher pollen counts rather than targeting people with allergies.

  Data Clean Rooms
  Data Clean Rooms (DCRs) have emerged as an important data collaboration tool. Although they offer many data minimization and security benefits, leveraging DCRs does not exempt companies from privacy compliance obligations. The attendees discussed the common myths, buzzwords, and hype surrounding DCRs while highlighting important ways that the digital advertising industry can maximize DCRs’ utility while reducing risk.

  • It is not a privacy compliance silver bullet. While DCRS reduce risk of data leakage and security, it is not a privacy compliance “silver bullet” because pseudonymized data is still considered “personal data” and is, therefore, subject to privacy compliance requirements.
  • Conduct a deep dive to take the proper privacy position. Companies need to conduct a deep dive into their DCR providers before structuring the relationship under applicable state privacy laws (e.g., service provider versus third party). For instance, they need to understand what exactly DCRs are used for (e.g., insights and targeted advertising planning, audience augmentation, data analytics, and measurements). In addition, not all the DCRs are set up the same, and companies should understand data flows, privacy enhancing technologies applied, data hosting infrastructure, and data access controls in order to apply privacy laws to the DCR use cases.

  Digital Ad Data Flows
  Understanding the common data flows in digital advertising is critical to operationalizing an effective data privacy program. This is a complex undertaking where personal data moves through pixels and tags, as well as in the bid stream and server-to-server transfers.

  • The increasingly costly state-by-state approach. The state-by-state approach to privacy compliance is becoming increasingly costly as more states enact comprehensive privacy laws. Companies are increasingly taking a “national approach,” which itself has several types.
  • GPC adoption beyond the state privacy law mandate. A majority of businesses seem to be honoring GPC signals in states where it is not explicitly required by law.
  • Users can override GPC Signals. While honoring GPC signals is required in certain states and will be required in more starting in 2025, users may take action to override the privacy preferences transmitted by GPC, such as through a preference center tool.

  AI and Data Governance in Digital Advertising
  Artificial intelligence continues revolutionizing the digital advertising industry, from ad creatives to campaign planning and inferences. Robust data governance is foundational as companies mature their AI programs.

  • Bad data makes bad AI. Solid data governance is essential for AI model development to address potential risks such as bias, drifting, and overfitting. Effective data governance requires continuous data inventory and mapping to track data provenance and lineage. As companies mature their AI programs, they should continue to look into tools such as algorithmic personal data finders, master data management software, and algorithmic impact assessment tools.
  • AI governance. Organizations should maintain an inventory of their AI models and training data sets. They should conduct internal audits on their own AI usage and third-party assessments both upstream and downstream. AI management should be integrated into their software development lifecycle, incorporating privacy, security, and ethics by design.

  Regulators’ Perspective
  IAB’s EVP and General Counsel, Michael Hahn, spoke with Esther Chavez, Senior Counsel for the Privacy, Data Security, and Technology team in the Consumer Protection Division Office of the Texas Attorney General.

  • Enforcement actions will be on the rise. The Texas AG’s office has many regulatory tools, including the Texas Data Privacy and Security Act, and it continues to staff up its privacy enforcement arm. Enforcement priorities are also driven by consumer complaints, market news, and staff members’ own observations. The Texas AG’s office received over 500 complaints this year, of which 32% pertained to the Texas Data Privacy and Security Act.
  • Consider the consumer’s reasonable expectation. Using personal data for purposes broader than the purpose for which data was originally collected must still meet consumers’ reasonable expectations and consider potential harm to consumers.
  • Third-party due diligence is expected. Companies are expected to adequately manage third-party privacy risks. They should have a documented and demonstrable compliance program that includes robust due diligence of their processors and third parties. For instance, companies should be prepared to answer questions such as how vendors are onboarded, how to confirm the vendors adhere to their privacy and security commitments, how risk assessments inform the level of diligence needed, and whether the risk assessment considers the potential harm to consumers.

  Final thoughts
  At the end of the day, Transcend’s Shaun Lichti tied together the day’s threads with Arlene Mu, IAB’s Assistant General Counsel. The main takeaway is that privacy professionals should be able to zoom in and ask specific questions about personal data collection, use, and sharing practices, as well as zoom out to see the bigger picture: consumer trust.

  In order to maintain consumer trust, privacy professionals should think about explainability so they can provide consumers with adequate information in plain English, so consumers can make informed choices and provide consent.

  Lastly, as companies continue to mature on their privacy journey, solid data governance, robust consent management, and scalable risk assessment processes are essential to spearhead new technology adoption.

  Through insightful panel discussions and thought-provoking breakout sessions, the Privacy Compliance Salon enabled privacy experts to conduct deep dives into key privacy issues and benchmark the best practices. We hope to see you at more IAB Legal Affairs Council events.

  The post Navigating the Privacy Challenges in Digital Advertising: Key Takeaways from the IAB Privacy Compliance Salon appeared first on IAB.

  ]]> https://www.iab.com/news/iab-challenges-ftcs-new-subscription-rules-in-federal-lawsuit Tue, 29 Oct 2024 12:30:10 +0000 https://www.iab.com/news/?p=188965 WASHINGTON, D.C. – The Interactive Advertising Bureau (IAB), along with a coalition of leading trade associations, filed a lawsuit today against the Federal Trade Commission (FTC) challenging its changes to rules governing subscription renewals. The suit asserts that the FTC failed to adhere to proper procedures, including conducting a comprehensive economic analysis. In April, following … Continued

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  ]]> WASHINGTON, D.C. – The Interactive Advertising Bureau (IAB), along with a coalition of leading trade associations, filed a lawsuit today against the Federal Trade Commission (FTC) challenging its changes to rules governing subscription renewals. The suit asserts that the FTC failed to adhere to proper procedures, including conducting a comprehensive economic analysis.

  In April, following IAB’s request for public hearings, an administrative law judge determined that the FTC’s proposed “Negative Options Rule” would impose a compliance burden exceeding $100 million—a legal threshold that requires the agency to perform a more thorough review. Negative option marketing involves practices where consumers are able to continue to receive subscription services unless they cancel the service.

  “In multiple filings, we’ve simply asked the FTC to follow the law and Constitution when issuing major regulations,” said Lartease Tiffith, IAB’s Executive Vice President for Public Policy. “Instead, the FTC has introduced overly broad rules, bypassing public input and congressional mandates. While IAB supports reasonable regulation, these new rules threaten a business model essential to companies of all sizes across various industries—and to consumers.”

  Tiffith also highlighted the potential financial impact for people currently enjoying audio, video, news, shopping, and other subscriptions. “The economic burden could far exceed $100 million. The FTC’s rules could eliminate free trials and straightforward renewals, replacing them with cumbersome forms and legal jargon–ultimately costing consumers both time and money. Furthermore, vague language and excessive penalties will discourage businesses across industries from offering subscription services altogether,” he said.

  He explained advancements in digital advertising, marketing, and online payment services have allowed small businesses to compete, offering more choice and lower transaction costs to consumers. Studies show online subscriptions and shopping are especially popular with younger Americans. He said the FTC should focus its resources on punishing bad actors.

  IAB is joined in the lawsuit by the Electronic Security Association (ESA) and the National Cable Television Association (NCTA).

  About IAB
  The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and collaboration of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

  IAB Media Contacts
  Kate Tumino / Brittany Tibaldi
  212-896-1252 / 347-487-6794
  ktumino@kcsa.com/btibaldi@kcsa.com

  The post IAB Challenges FTC’s New Subscription Rules In Federal Lawsuit appeared first on IAB.

  ]]> https://www.iab.com/news/iab-challenges-ftc-characterization-of-digital-advertising Thu, 19 Sep 2024 14:30:40 +0000 https://www.iab.com/news/?p=187237 WASHINGTON, D.C. – In response to today’s Federal Trade Commission report describing social media, streaming, digital advertising, and other online services as “commercial surveillance,” IAB CEO David Cohen issued the following statement: “While we are still digesting the report, we are disappointed with the FTC’s continued characterization of the digital advertising industry as engaged in … Continued

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  ]]> WASHINGTON, D.C. – In response to today’s Federal Trade Commission report describing social media, streaming, digital advertising, and other online services as “commercial surveillance,” IAB CEO David Cohen issued the following statement:

  “While we are still digesting the report, we are disappointed with the FTC’s continued characterization of the digital advertising industry as engaged in ‘mass commercial surveillance’. This charged statement suggests that the personal data of consumers is covertly collected and used for advertising purposes. Nothing could be further from the truth, as countless studies have shown that consumers understand the value exchange and welcome the opportunity to have access to free or highly subsidized content and services.

  “We have long advocated for consumers to have certain rights that empower them to limit the use of their personal data, including for advertising purposes. The states have been leading the way in developing laws that define consumer rights including access, deletion, and the right to opt out of the sale of personal data and for targeted advertising. These laws often impose obligations on companies to engage in sound data management practices such as data minimization.

  “We believe that consumers in all 50 states should enjoy these rights, which is why the IAB vehemently supports a comprehensive national data privacy law. Congress, rather than a federal agency, should balance consumers’ privacy rights, competition and the value exchange between consumers and publishers. The IAB and its members will continue to advocate for consumer privacy, transparency, and the ability for all participants in the digital economy to conduct business. Our collective goal should be to ensure that all Americans can access valuable content and services while preserving their privacy and their preferences.”

  About IAB
  The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and collaboration of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

  IAB Media Contacts
  Kate Tumino / Brittany Tibaldi
  212-896-1252 / 347-487-6794
  ktumino@kcsa.com/btibaldi@kcsa.com

  The post IAB Challenges FTC Characterization of Digital Advertising, Supports Consumer Protections appeared first on IAB.

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