IAB launches diligence platform to streamline digital ad privacy compliance

The Interactive Advertising Bureau (IAB) this week unveiled its new Diligence Platform, a comprehensive solution designed to streamline privacy compliance for the digital advertising industry. This launch, occurring just five days ago, addresses the increasing complexity of privacy regulations across the United States. The platform, powered by SafeGuard Privacy, aims to provide a standardized approach to privacy due diligence for brands, agencies, ad tech companies, publishers, and platforms operating in the digital advertising space.

The introduction of the IAB Diligence Platform comes at a critical juncture for the digital advertising industry. With 19 comprehensive state privacy laws currently in effect and more anticipated, digital advertising has transitioned into a regulated industry. These legislative changes emphasize principles of accountability and transparency, particularly in conducting due diligence on partners who handle personal information in digital advertising transactions.

David Cohen, CEO of IAB, underscored the significance of this development. According to Cohen, the platform offers a user-friendly solution in a world where privacy laws are constantly changing and compliance is becoming increasingly complicated. He stressed the importance of proactive preparation to meet legal responsibilities, highlighting the platform's role in helping the ecosystem navigate these challenges while maintaining strong data privacy standards.

The IAB Diligence Platform incorporates several key features designed to address the specific needs of the digital advertising industry. At its core are advertising industry-specific questions developed by IAB. These questions are tailored to digital advertising data flows and business use cases, ensuring thorough third-party due diligence. This specificity is crucial in an industry where data handling practices can vary widely between different types of companies and campaigns.

Efficiency and scalability form another cornerstone of the platform's design. Historically, ensuring vendor compliance has been a manual, complex, and time-consuming process. The new platform allows users to complete relevant questionnaires once and share them with current and prospective deal partners. This streamlined approach significantly reduces repetitive tasks and accelerates the diligence process, a critical factor in an industry known for its fast-paced deal-making.

The platform's comprehensive compliance coverage is particularly noteworthy. It has been updated to address current state privacy laws, including the recently enacted Protecting Americans' Data from Foreign Adversaries Act. Additionally, it incorporates industry compliance initiatives like the Multi-State Privacy Agreement (MSPA). This broad coverage ensures that users can address a wide range of regulatory requirements through a single platform.

Michael Hahn, EVP and General Counsel for IAB and IAB Tech Lab, provided context on the regulatory landscape driving the need for such a platform. Hahn explained that state privacy laws now emphasize accountability, requiring businesses to ensure their partners handle personal information lawfully. These laws often include mandatory audit provisions in contracts. Furthermore, regulations are increasingly highlighting the importance of due diligence in determining liability, making third-party risk management a critical concern for businesses in the digital advertising ecosystem.

The development of the IAB Diligence Platform represents a collaborative effort within the industry. Its origins can be traced back to IAB's Annual Leadership Meeting in January 2024, where industry privacy lawyers and law firms collaborated within the Privacy Implementation and Accountability Task Force (PIAT). This task force was responsible for drafting the appropriate business and privacy questions for each digital advertising use case and vendor type, ensuring the platform's relevance and effectiveness across the industry.

Several prominent organizations have expressed support for the platform during its development process. John Piccone, Regional President, Americas at Adform, highlighted the platform's value in streamlining due diligence processes for digital advertising companies that work with thousands of partners. Vinny Rinaldi, Head of Media, U.S. CMG & Salty at Hershey, emphasized the platform's role in managing privacy regulations and ensuring advertising partners meet high data protection standards. Paul Bannister, Chief Strategy Officer at Raptive, noted the platform's ability to centralize compliance across multiple partners and keep companies proactive in the face of changing laws.

The technical underpinnings of the IAB Diligence Platform are provided by SafeGuard Privacy, a company specializing in privacy compliance management. Richy Glassberg, Co-Founder & CEO of SafeGuard Privacy, described the platform as setting new benchmarks for data privacy and compliance in the industry. Glassberg emphasized that the platform provides stakeholders with a single source of truth to demonstrate and manage their diligence efficiently across the industry with all of their partners.

From a technical perspective, the platform integrates several key components. It includes comprehensive U.S. state law assessments, providing users with up-to-date information on regulatory requirements across different jurisdictions. The platform also features dynamic questionnaires that can be updated as regulations evolve, ensuring ongoing relevance and compliance.

The launch of the IAB Diligence Platform reflects broader trends in the digital advertising industry. As privacy concerns have grown and regulations have tightened, there has been an increasing need for standardized, efficient compliance tools. The platform's development can be seen as a response to the industry's recognition that traditional, manual approaches to compliance are no longer sufficient in the current regulatory environment.

Looking ahead, the impact of the IAB Diligence Platform on the digital advertising industry could be significant. By providing a standardized, efficient approach to privacy compliance, the platform has the potential to reduce costs and streamline operations for companies across the ecosystem. It may also contribute to raising the overall standard of privacy practices within the industry, as companies have easier access to comprehensive compliance tools.

However, the effectiveness of the platform will ultimately depend on its adoption rate and the industry's commitment to maintaining high privacy standards. As regulations continue to evolve, the platform will need to adapt and expand its capabilities to remain relevant and useful.