Interactive Advertising Bureau sets rules on online ads

New guidance sets out rules for the collection and use of data as an advertising tool

The Interactive Advertising Bureau (IAB) has launched a set of Good Practice Principles for online advertisers.

The IAB said that it had worked with a number of key online players to draw up the rules, and had the support of the Information Commissioner's Office. The guidance sets out rules for companies that collect and use data as an advertising tool.

"The online advertising industry is committed to protecting privacy, and the IAB has a proven track record in self-regulation," said Nick Stringer, head of regulatory affairs at the IAB.

"The Good Practice Principles are a UK first, setting new standards in privacy and illustrating the proactive nature of the IAB and its members. These are significant developments in offering people greater transparency and choice regarding behavioural advertising."

Included in the guidance is the suggestion that companies give consumers fair notice when they collect or use behaviour-based information, explain precisely how it can be used, and allow them to opt out. Companies that sign up to the charter have six months to become compliant, the IAB said.

The guidance has the support of some big industry players, including AOL, Google, Microsoft and the controversial BT-backed Phorm.

"Phorm is delighted to be one of the founding signatories of the IAB's Good Practice Principles for behavioural targeting," said Kent Ertugrul, founder and chief executive of Phorm.

"We believe these principles represent a world first: industry leading the way in consumer education, empowerment and choice in online advertising. Phorm believes these principles set the basis for notice and consent for behavioural targeting going forward."

The rules come into force in September.