Self-Regulation for Digital Advertising: DAA and NAI
Two voluntary codes govern much online behavioral advertising: the DAA Self-Regulatory Principles and the NAI Code of Conduct, both emphasizing opt-outs and notice/choice. For companies that adopt them, a violation can be an unfair and deceptive practice triggering FTC and state AG action.
How this supports CIPP/US study
Use this lesson to identify the disclosure, workplace or cross-border rule that changes the result in a fact pattern. Continue with the CIPP/US study plan.
Many companies voluntarily follow the Digital Advertising Alliance (DAA) Self-Regulatory Principles for Online Behavioral Advertising and the Network Advertising Initiative (NAI) Code of Conduct. The DAA principles cover desktop/laptop, mobile and cross-device use, emphasizing consumer opt-out management. The NAI is composed exclusively of third-party advertising companies and requires notice and choice for interest-based advertising.
DAA principles are enforced via the Council of Better Business Bureaus and the Direct Marketing Association; the NAI code is enforced by its board, with possible membership revocation and referral to the FTC. For a company that has agreed to such a code, a violation is treated as an unfair and deceptive practice that can lead to FTC and state AG enforcement.
Companies also self-constrain in response to public sentiment - e.g., in 2020 Apple blocked all third-party cookies in its browser, and in 2021 Google announced plans to phase out third-party cookies.
Key terms - quick answers
What is “Digital Advertising Alliance (DAA)”?
What is “Network Advertising Initiative (NAI)”?
Sources and study method
This independent lesson uses active recall, spaced retrieval and scenario practice. Read the full study method.