Network Advertising Initiative

The NAI (Network Advertising Initiative) is a cooperative of online marketing and analytics companies.

History of Activities
The NAI was formed in 1999 in response to consumer concerns over the use of profile-based targeted online advertising. It's first steps were to create a set of self-regulatory principles for consumer notice, choice, and control. These principles received the unanimous support all the Federal Trade Commission (FTC).

The NAI Principles include a set of pre-existing principles created by the forerunning Online Privacy Alliance.

The NAI Principles have been used as a model for self regulatory safe harbors within federal regulation. Concepts created within the principles have been copied directly into federal privacy bills.

The NAI also established standards for the use of Web beacons, also accepted by the FTC.

In 2002, the NAI formed the Email Sender and Provider Coalition (ESPC), for the purpose of developing effective policy and technical responses to the spam issue.

The NAI recently issued a press release in response to the so-called "Do Not Track" Proposal.

Stated Objectives
The NAI's stated objectives include the following:

1. Establishing standards for responsible marketing behavior including business management practices and data management practices

2. Building consumer awareness and ensuring transparency of industry practices

3. Meeting consumer concerns with both effective industry self-regulation and sensible protections for online consumers

Self Regulation and Standards
In a nascent online advertising industry featuring low levels of external regulation and high level of concern from consumers, consumer privacy groups and activists, the NAI is working to preserve the self regulatory status quo.

To this end the NAI has developed standards covering 3rd party ad networks, cookies, spam, and Web beacons. The NAI works with regulatory agencies, federal and state legislators and others to establish and maintain these standards. Central to the NAI standards are the privacy concepts of notice, consent, control, and dispute resolution.

The Standards are as follows:

A. Network advertisers will adhere to the [http://www.privacyalliance.org/resources/ppguidelines.shtml Online Privacy Alliance (“OPA”) Privacy Policies Guidelines] for personally identifiable information.

B. Network advertisers will not use sensitive personally identifiable data for online preference marketing.

C. Network advertisers will not, without prior affirmative consent ("opt-in"), merge personally identifiable information with information previously collected as nonpersonally identifiable information.

D. Network advertisers will provide consumers with robust notice and choice regarding the merger of personally identifiable information with non-personally identifiable information collected on a going forward basis for online preference marketing.

E. Network advertisers will not use personally identifiable information (“PII”) consisting of PII collected offline merged with PII collected online for online preference marketing unless
the consumer has been afforded robust notice and choice about such merger before it
occurs.

F. Network advertisers will require Web publishers with which they have contractual relationships to provide notice and choice regarding the collection of non-personally identifiable information for online preference marketing.

Participating Network Advertisers
The NAI members listed below participate fully in the NAI Principles and opt-out functions.

Advertising.com (external link)

AlmondNet (external link)

Atlas (external link)

DoubleClick (external link)

Revenue Science (external link)

Safecount (external link)

SpecificMEDIA (external link)

Tacoda (external link)

Real Media [http://www.247realmedia.com 24/7 (external link)]

(formerly Poindexter Systems) (external link)

(external link)

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