When it comes to Privacy, words mean everything. The way the industry communicates to consumers, business partners and regulators about how data is being used must be clear, consistent and meaningful. Today, the digital advertising industry is taking a big step towards better, standardized data privacy practices through substantial developments with the IAB Tech Lab’s Privacy Taxonomy. This groundbreaking initiative was made possible through the generous donation of Fideslang by Ethyca to the IAB Tech Lab announced early this year.
A key initiative of the IAB Tech Lab’s Privacy Implementation & Accountability Task Force, these updates represent a crucial milestone to enable the industry to effectively manage data and privacy compliance practices and create a common language for communicating between partners around privacy. Privacy Taxonomy delivers a consistent framework for labeling and describing data elements, purpose of use and subjects that provide industry stakeholders greater confidence in navigating the complex landscape of global privacy regulations.
“Working on the TCF Canada framework to comply with PIPEDA, Law 25 and the yet to be passed C-27, our community well understood the need for clarity and precision in the words we use to communicate privacy and the purposes for which we use data. The Privacy Taxonomy is a testament to the collaborative spirit of our industry as it automatically cross-references against existing IAB frameworks like TCF Europe and TCF Canada,” said Sonia Carreno, IAB Canada President. “By leveraging the power of Fideslang and our members’ expertise, we are creating a valuable resource that will benefit businesses of all sizes in all jurisdictions. These updates bring us closer to a future where data privacy is not only a legal requirement but a fundamental principle of digital advertising.”
Benefits of a Standardized Privacy Taxonomy
The Privacy Taxonomy offers the following key advantages:
- Simplifying compliance with major privacy regulations that continue to emerge from the US and other countries like the CCPA and MSPA.
- Standardized terminology to improve communication between industry stakeholders and business partners.
- Consistent labeling leads to consistency with data mapping, data subject requests and consent management.
Privacy Taxonomy Categories
The Privacy Taxonomy is built on three main categories:
- Data Elements – Defines the type of data processed and is inclusive of both broad categories (e.g. user contact data) and specific subcategories (e.g. user contact email).
- Data Uses – Describes how the data is used. Examples include Provide Service Operations or Advertising and Marketing.
- Data Subjects – Identifies who owns the data (e.g. Customer, Employees)
Additional Features
- Sensitivity Matrix – Allows users to assign a sensitivity level (1-3) to data categories based on applicable laws and internal policies.
- Law Triggered – Maps data categories and uses to relevant regulations and potential legal considerations.
- IAB Framework Cross-reference – Automatically links data uses to IAB frameworks like TCF and MSPA for seamless integration.
- Extensibility – The taxonomy can be customized to address specific needs while maintaining interoperability.
These advancements have a direct and positive impact on efforts to protect consumer privacy. By providing a common language for understanding and discussing data practices, the Privacy Taxonomy facilitates better communication, transparency, and compliance with privacy laws. Read more about the Privacy Taxonomy here.
Your Voice Matters
Through October 5th, 2024, the IAB Tech Lab will continue to accept feedback on the Privacy Taxonomy. Industry stakeholders are encouraged to submit ideas for improvements or inclusion of missing classifications to support@iabtechlab.com.
Together, we can make the digital advertising sector more transparent and accountable when it comes to data privacy.