In an opinion issued on June 22, 2010, the EU Data Protection Authorities (Article 29 Working Party) clarified the legal framework applicable to online behavioral advertising – an activity that is becoming a hot topic for discussion as its popularity grows. Online behavioral advertising is, at its most basic level, the practice of gathering data, generally via cookies, about computer users for the purposes of serving tailored advertising. Some argue that such information gathering constitutes an invasion of people’s privacy. Most of the time, data subjects are not even aware that their personal data are being collected and used to create detailed user profiles and provide them with tailored advertising.
In order to remedy this lack of notice, it is becoming a common practice for advertising network providers to offer “opt-out” mechanisms so that users may, if they so wish, decline to receive targeted advertising.
Until now, the legality of such mechanisms under the EU Directive was questionable. That is no longer the case.
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