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.
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.