There has been a ruling involving a small French advertising firm which could completely reshape online advertising.

Basically, the court ruled that consent to collect information could not be passed onto third parties though a contract under the European Union’s General Data Protection Regulation (GDPR) regulations.

If this stands, it will completely reshape internet advertising, IMNSHO for the better:

A ruling in late October against a little-known French adtech firm that popped up on the national data watchdog’s website earlier this month is causing ripples of excitement to run through privacy watchers in Europe who believe it signals the beginning of the end for creepy online ads.

The excitement is palpable.

Impressively so, given the dry CNIL decision against mobile “demand side platform” Vectaury was only published in the regulator’s native dense French legalese.

Here is the bombshell though: Consent through the @IABEurope framework is inherently invalid. Not because of a technical detail. Not because of an implementation aspect that could be fixed. No.
You cannot pass consent to another controller through a contractual relationship. BOOM pic.twitter.com/xMlNHJTKwl

— Robin Berjon (@robinberjon) November 16, 2018

………

In plainer English, this is being interpreted by data experts as the regulator stating that consent to processing personal data cannot be gained through a framework arrangement which bundles a number of uses behind a single “I agree” button that, when clicked, passes consent to partners via a contractual relationship.

………

The firm was harvesting a bunch of personal data (including people’s location and device IDs) on its partners’ mobile users via an SDK embedded in their apps, and receiving bids for these users’ eyeballs via another standard piece of the programmatic advertising pipe — ad exchanges and supply side platforms — which also get passed personal data so they can broadcast it widely via the online ad world’s real-time bidding (RTB) system. That’s to solicit potential advertisers’ bids for the attention of the individual app user… The wider the personal data gets spread, the more potential ad bids.

That scale is how programmatic works. It also looks horrible from a GDPR “privacy by design and default” standpoint.

This cuts to the core of the current advertising model, and Google and Facebook’s current dominance of online advertising.

It should get very interesting.