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Network Advertising Initiative

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Network Advertising Initiative

The NAI (Network Advertising Initiative) is an industry trade group founded in 2000 that develops self-regulatory standards for online advertising. Advertising networks created the organization in response to concerns from the Federal Trade Commission and consumer groups that online advertising — particularly targeted or behavioral advertising — harmed user privacy. The NAI seeks to provide self-regulatory guidelines for participating networks and opt-out technologies for consumers in order to maintain the value of online advertising while protecting consumer privacy. Membership in the NAI has fluctuated greatly over time, and both the organization and its self-regulatory system have been criticized for being ineffective in promoting privacy.[citation needed]

The NAI was formally announced at the Public Workshop on Online Profiling held by the FTC and the Department of Commerce on November 8, 1999. Its membership then consisted of 24/7 Media, AdForce, AdKnowledge, Adsmart, DoubleClick, Engage, Flycast, MatchLogic, NetGravity (a division of DoubleClick) and Real Media.

In July 2000, the NAI published a set of principles, negotiated with the FTC and endorsed by the FTC, in their report to Congress on online profiling. In May 2001, the NAI released an accompanying website allowing users to more quickly download opt-out cookies for all participating ad networks.

In 2002, the NAI released guidelines for the use of web beacons — small images or pieces of code used to track visiting and traffic patterns, and to install cookies on visitors' machines. These guidelines use a similar model of notice and choice as the NAI Principles; opt-in consent is only required when sensitive information is associated with personally identifiable information and transferred to a third party.

In 2003, the NAI formed the Email Service Provider Coalition (since renamed the Email Sender and Provider Coalition). The ESPC engages in lobbying, press relations and technical standards development to support "email deliverability" — ensuring that mass email delivery continues despite anti-spam legislation and technologies. Today the two organizations exist entirely independent from each other.

In response to a 2007 FTC staff report (Self-Regulatory Principles for Online Behavioral Advertising), the NAI published an updated set of principles in December 2008 after providing a draft in April for public comments. The new principles incorporated new restrictions on the collection and use of sensitive data and data related to children.

In 2009, the NAI launched a consumer education page, which provided a centralized location for a variety of informational articles, videos, and other creative content designed to educate users about online behavioral advertising.

In 2010, the NAI joined the Digital Advertising Alliance, a non-profit organization of leading companies and trade associations including the Association of National Advertisers (ANA), the American Association of Advertising Agencies (4As), the Direct Marketing Association (DMA), the Interactive Advertising Bureau (IAB), the American Advertising Federation (AAF) and the NAI. These associations and their members are dedicated to developing effective self-regulatory solutions to consumer choice for web viewing data.

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