• A new study done by adalytics, an AdTech researcher, found that AdTech firms are not adhering to the “privacy choice” guidelines set out by the Interactive Advertising Bureau’s (IAB) transparency and consent framework (TCF) with respect to ad tracking for users in the EU.

• The findings raised questions on the effectiveness of the TCF, which is a self-regulatory framework with close to 800 AdTech vendors in its network. The research finds that many major firms continue to track and profile users even when the users have explicitly opted out of receiving personalized ads. As a result, some firms may not be able to effectively demonstrate how they obtained permissioned user data, exposing them to regulatory and disclosure risks.  

• The study suggests that AdTech firms have not invested the proper time, money, and development work required to configure their servers to be in compliance with the TCF. In addition, an impending Belgian court ruling is expected to find IAB’s TCF to be in breach of EU’s general data protection regulation (GDPR).

<ul><li> Analyst QuickTake: This new study adds to the growing concerns raised by regulators, such as the new guidelines issued by the UK information commission last month. These concerns could potentially create new regulations and stricter enforcement concerning user privacy amidst industry developments such as the phasing out of third-party cookies, which represents a significant challenge to AdTech firms, impacting its ability to deliver personalized ad experiences.</ul>