Online Behavioral Targeting: What Does the Law Say?

Abstract

Online behavioral targeting (OBT), which allows advertisers to deliver relevant messages to consumers by basing those messages on an analysis of consumers' online behavior, has become a widespread, mainstream marketing practice. While this new targeting technique comes with distinct advantages for advertisers and consumers alike, it also raises privacy concerns and exposes marketers to a myriad of potential legal pitfalls. Still, the legal risks of OBT arising from private law have not been adequately discussed in the mainstream marketing literature. The purpose of this article is to expand upon this gap in the literature. Specifically, this article attempts to (1) to provide an overview of the state of the art of OBT, (2) to explain the relevant current and evolving laws and regulations with a particular emphasis on private law, (3) analyze the significance of these private laws for marketers, and finally (4) discuss some recommendations for online advertisers.

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