Data Location Companies Swear Off Tracking Sensitive Location Data

The self-regulatory body for digital advertising Network Advertising Initiative (NAI) announced a new standard to limit the collection, use and transfer of precise location data from sensitive places. That includes location data signals tied to religion, health care services, military bases, LGBTQ+-friendly spaces and spaces occupied by children under 16. Committing to these voluntary standards, called the Enhanced Standards, data companies like Cuebiq, Foursquare and Precisely PlaceIQ are swearing off the use and transfer of sensitive data to advertisers for ad targeting purposes. In cases of egregious violations, these companies will be referred to enforcement by the Federal Trade Commission (FTC). “Not only are these companies volunteering to be subjected to these standards, but they're also volunteering to be enforced against these standards,” said Leigh Freund, president and CEO of the NAI. Previously, Cuebiq, Foursquare and Precisely PlaceIQ found themselves caught in the webs of bad actors who harvested user data in places of worship or health clinics—especially in light of the Supreme Court's plans to strike down the landmark Roe v. Wade decision—to target people with related ads or sell data to law enforcement, the companies say. This often led to scrutiny of their entire data ecosystems. This is an attempt by the industry to self-regulate in the absence of federal privacy law, and should have little to no revenue loss, per sources. Recipe for a ‘Flood of Lawsuits’: Industry Calls for More Specificity on the Federal Privacy Bill Implementing restrictions around sensitive location data is not new for these companies. Foursquare, for instance, is currently restricting approximately 1.5 million locations across the U.S. on the basis they may be considered sensitive. “We will continue always assessing the list because there are times when things may be added,” said Elizabeth Hein, global data protection officer for Foursquare. “It's possible we may have some additions in the future, but that's no change from what we're currently doing.” Restriction on tracking and building audiences Many data companies and brands track people, especially without a federal regulation in place, in locations like Planned Parenthood. If this sensitive information was leaked onto the web, it could be used by vigilantes and law enforcement to know a person's whereabouts. However, under this self-regulation, companies that adhere to these standards can no longer build audiences and profile devices based on sensitive locations for retargeting ads, thereby limiting such tracking. “These Enhanced Standards can be a differentiator in the marketplace, enabling app publishers and advertisers to choose their partners based on enhanced privacy standards,” said Duncan McCall, svp and general manager of Precisely PlaceIQ and founder of PlaceIQ, in a statement. Location data is a valuable currency for advertisers, but so is privacy. Therefore, agencies and brands are keen on establishing partnerships with privacy-first companies. McCall noted that less than 1% of visitation habits will be excluded from this regulation, meaning advertisers can still get data access to retail locations like Walmart and Target, restaurant and cafe visits like Starbucks or even gas station visits. these locations make up 95% of the spend, according to McCall. “This won’t have a big revenue impact,” he told Adweek. "And any company that wants to be taken seriously in the long term should sign up and be part of this."