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| Microsoft’s Ad Tech Firm, Xandr, Faces GDPR Fines |
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The ad tech industry is working overtime to prevent privacy compliance mishaps, but every once in a while, bad actors seep in between the cracks. Noyb, a prominent tech watchdog, has backed a complaint against Microsoft's advertising subsidiary Xandr, accusing it of violating data access rules and providing inaccurate data. Xandr, acquired by Microsoft in 2021, is a real-time bidding platform for buying ad space based on user interests. However, an Italian complainant alleges that Xandr denied his request for personal data access, citing an inability to identify him. Noyb claims this is not an isolated incident, noting that Xandr admitted to having a 0% response rate to 1,900 access and erasure requests in 2022. Xandr justifies the denials by stating they cannot verify identities without additional identifiers. This was probably not the best response, especially when the law is not on your side, and this stance drew some criticism. Noyb's lawyer, Massimiliano Gelmi, who highlights the company's extensive data collection and targeting activities, emphasized the serious nature of the data involved, which includes sensitive personal information. Furthermore, Noyb points out the inaccuracy of Xandr's data, illustrated by conflicting personal details provided by the company. This lack of accuracy, says Gelmi, undermines trust and benefits Xandr by allowing it to present users inconsistently to advertisers. Noyb has filed a GDPR complaint with Italy's data protection authority, urging it to enforce data minimization and accuracy principles and to consider imposing a fine on Xandr. Microsoft responded briefly, stating its readiness to cooperate with the regulatory authority. With increased fines for privacy infractions — GDPR fines in Europe surged from 300,000 euros in June 2021 to 4.2 billion euros in June 2023 — it is smart for Microsoft to comply with the regulatory authority. – AB |
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| TikTok Ad Spend Slows Ahead of US Ban |
| Before the US government told ByteDance, TikTok’s parent company, that it would ban the app unless it sold it to a US company, the clock app was bringing in droves of ad dollars. Now, with the ban looming closer, it seems TikTok is dealing with its own ad spend slowdown. Major advertisers like Target, DoorDash, Bayer, and Procter & Gamble significantly reduced their spending on TikTok from March to April. In March, ad spending increased by 19% year-over-year, but this growth slowed to 11% in April and 6% in May, according to Adweek and MediaRadar. The new law gives ByteDance until January 2025 to sell the app to a US buyer or face a ban, with a possible 90-day extension. TikTok is suing the US government, claiming the ban violates the First Amendment, suggesting a lengthy legal battle ahead. TikTok has a vast reach over a wide range of demographics, especially among US adults and Gen Z. It also has ongoing partnerships with music publishers, artists, and retailers, but the uncertainty of a ban is causing advertisers to shift their budgets to other platforms. While TikTok continues to see high user engagement, brands are exploring other advertising channels in anticipation of a potential ban. Platforms like Meta and Google, which offer short-form video content, will likely benefit. Some think TikTok isn’t going anywhere, but Kiana Lupinacci, Senior Strategic Campaign Manager at Adtaxi, warned us that “TikTok has proven to be an effective method of building audiences, especially for the younger generation of users. A TikTok ban will likely revamp digital consumption habits across all audience types.” – AB |
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| Majority of Subscription Apps and Websites Use Dark Patterns, Says FTC Study |
| The FTC and two international consumer protection networks released a study on dark patterns — manipulative design techniques that jeopardize user privacy and push them toward unintended purchases or actions. The study analyzed 642 subscription service websites and apps, finding that nearly 76% employed at least one dark pattern, and almost 67% used more than one. These dark patterns, such as sneaking, obstruction, nagging, forced action, and social proof, have been a particular focus for the FTC, which previously sued Match for using such tactics to make subscription cancellations difficult. The report suggests that the FTC might increase scrutiny of these deceptive practices, although it has already been heavily critical of them. The study identified sneaking as the most common dark pattern, with 81% of sites making auto-renewals hard to disable and 70% providing no cancellation information. Other tactics include obstructing actions, nagging users, enforcing forced actions, and using social proof. The report shows the widespread use of these manipulative techniques, though the legality of such practices remains for individual governments to decide. — AB |
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