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Network Advertising Initiative

Network Advertising Initiative
Network Advertising Initiative logo
Website http://www.networkadvertising.org

The Network Advertising Initiative is an industry trade group formed in 1999 that develops self-regulatory standards for online advertising. Advertising networks created the organization in response to concerns from the Federal Trade Commission and consumer groups that online advertising — particularly targeted or behavioral advertising — harmed user privacy. The NAI seeks to provide self-regulatory guidelines for participating networks and opt-out technologies for consumers in order to maintain the value of online advertising while protecting consumer privacy. Membership in the NAI has fluctuated greatly over time and both the organization and its self-regulatory system have been criticized for being ineffective in promoting privacy.

The NAI was formally announced at the Public Workshop on Online Profiling [1] held by the FTC and the Department of Commerce on November 8, 1999. At that time, membership consisted of 24/7 Media, AdForce, AdKnowledge, Adsmart, DoubleClick, Engage, Flycast, MatchLogic, NetGravity (a division of DoubleClick) and Real Media.

In July 2000, the NAI published a set of Principles, negotiated with the FTC and endorsed by the FTC in their report to Congress on online profiling. In May 2001, the NAI released an accompanying web site [2] allowing users to more quickly download opt-out cookies for all participating ad networks.

In 2002, the NAI released guidelines for use of Web beacons — small images or pieces of code used to track visiting and traffic patterns and install cookies on visitors' machines. These guidelines use a similar model of notice and choice as the NAI Principles; opt-in consent is only required when sensitive information is associated with personally identifiable information and transferred to a third-party.


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