IAB Privacy’s Multi-State Privacy Agreement Provides Updated Contractual Framework to Ensure Privacy Compliance Across State Privacy Laws

Tech Lab’s US State Privacy Signals Introduced as Part of the Global Privacy Platform to Support State-Level Consent Signaling

As part of a continued effort to ensure that digital advertising participants keep consumer privacy at the forefront and comply with regulations, IAB and IAB Tech Lab have come together to update their privacy protocols and industry-level agreements to support marketers, agencies, publishers, and ad tech companies.

IAB Privacy’s Multi-State Privacy Agreement (MSPA) provides an updated contractual framework to ensure privacy compliance across five new state privacy laws. It works in conjunction with IAB Tech Lab’s US State Signals initiative, which was released today as part of the Global Privacy Platform (GPP). The MSPA and US State Signals specifications are available for public comment until October 27.

The MSPA is an evolution of the Limited Service Provider Agreement (LSPA) put in place in 2020 to ensure compliance with the California Consumer Privacy Act (CCPA). The updated MSPA helps ensure compliance with CCPA, the California Privacy Rights Act (CPRA, which goes into effect January 2023) and supports privacy legislation going into effect in 2023, including the Colorado Privacy Act (CoPA), Connecticut Data Privacy Act (CDPA), Utah Consumer Privacy Act (UCPA), and Virginia’s Consumer Data Protection Act (VCDPA).

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This MSPA agreement, in combination with IAB Tech Lab’s Global Privacy Platform (GPP), including its state level signaling, will help member companies address the increasingly complex challenges of global privacy and manage the different consent signals from multiple jurisdictions.

The MSPA includes provisions covering:

• “Gap transactions,” such that it applies contractual terms for those “sales” of personal information where there is ordinarily no contract in place in the digital advertising distribution chain
• Measurement and frequency capping, including when undertaking such activities using service providers
• Contextual advertising and advertising on a publisher’s first party segments
• Limitations on the use of sensitive personal information and information relating to children
• A “national” approach option to state privacy compliance that is set at the highest common denominator across the new state with privacy laws
• Use of the IAB Tech Lab’s technical specification for US State Signals in the GPP

“The patchwork of state regulations creates an increasingly complicated compliance landscape for the digital advertising industry,” said Michael Hahn, EVP, General Counsel, IAB and IAB Tech Lab. “The IAB Legal Affairs Council has been focused on meeting this challenge for the past year, and we believe the MSPA – the product of collaboration from stakeholders across the industry – is a crucial tool to solve this challenge.”

Hahn further explains that “We have found a way to solve for key advertising use cases that put consumers first, hews closely to the letter of the law, and, like the IAB Limited Service Provider Agreement, will be leveraged by small and large participants alike to meet their obligations.”

IAB’s MSPA and IAB Tech Lab’s US State Signals initiatives help the digital advertising industry to comply with varying privacy regulations across the US. The announcements of these initiatives follow the IAB Tech Lab’s recent launch of the GPP, which is a protocol designed to enable companies to manage user consent signals and privacy to be managed at a global scale.

“IAB Tech Lab’s Global Privacy Platform provides the technology toolkit the industry needs so publishers and advertisers can work with their vendors to manage privacy and consent management compliance on a global scale. The GPP also helps to mitigate risk by increasing consumer transparency and control signals that publishers and advertisers receive,” said Anthony Katsur, CEO, IAB Tech Lab. “We believe adopting both the Multi-State Privacy Agreement and the Global Privacy Platform will be a huge step forward for the industry. Privacy matters and so does compliance. We need to get both right.”

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