Three congresspersons want to stop targeted advertising. This might stop Google, Facebook and other tech giants using personal data to target their users with ads.
Stop tracking for targeted advertising
The act might just stop huge players from using users’ personal data to show them ads. The members of the Congress introduced the legislation on Tuesday.
So, the proposed text prohibits advertising based on personal information. The personal data is the one linkable to users or their devices. This also includes derived data, the browsing history, and the content of communications,
Moreover, the legislation would prohibit advertisers from targeting ads based on any information they might purchase.
All these things concern users and the authorities. Still, the bill does not ban the possibility for advertisers to target broad locations, such as a city. Also, it would not stop the ads based on the content users engage with – contextual advertising.
According to a 2019 research, targeted ads bring a 4% bump in efficacy over the contextual ones.
“A toxic business model”
Anna Eshoo, one of the initiators called targeted advertising a “toxic business model.” She also mentioned that this harms consumers and businesses. Eshoo explained that the practice of collecting personal data “fuels disinformation” and “privacy abuses.”
Moreover, Jan Schakowsky, another initiator, said that this might be just a part of a more comprehensive legislation. She added that she would do anything “to achieve this outcome.”
So, if the law passed, this would authorize both the US Federal Trade Commission and state attorneys general to enforce it. As a result, violators could also face private lawsuits.
Also, an international coalition of consumer protection, digital and civil rights organizations sent a letter to the EU and US legislators, last June. They asked them to stop the collection of data for any advertising purposes.