The framework, officially known as the Transparency and Consent Framework (TCF), is a key component of personalized advertising online. In fact, estimates show that approximately 80% of Europe’s internet depends on the TCF. This decision could impact how the user data tracking industry operates in the rest of Europe and even the US.
What is the TCF?
The entire issue revolves around how web pages in Europe collect user data and the “Real-Time Bidding” for ad spaces. To clarify, Real-Time Bidding is the instantaneous and automated auction of user data profiles in real-time based on which organizations buy ad spaces on the internet. Usually, when a user visits a webpage for the first time, a Consent Management Platform or CMP pops up asking for data sharing and collecting consent. The TCF governs how the CMP collects user data and stores it in a “TC string.” It also shares the TC String with organizations that use the OpenRTB system, Europe’s Real-Time Bidding protocol. This is how IAB’s framework, the TCF, lays out how online advertising in Europe happens.
IAB Europe’s Framework Does Not Secure User Data — Belgium IAB
The Belgian DPA has heard complaints against the TCF since 2019. According to the regulator, the CMP also places a cookie on the user’s device. The DPA said that, together, the cookie and the TC string provide enough data to identify users. As a consequence, the DPA said IAB Europe has violated the GDPR. The Authority also hit the company with a €250,000 fine. Furthermore, IAB Europe must permanently delete the data already processed under the existing TCF system. This ruling is enforceable all across the EU. This ruling is crucial as it impacts how companies in Europe carry out online advertising.
Statement from the Belgium DPA Chairman of Litigation Chamber
Hielke Hijmans is the Belgium DPA Chairman of the Litigation Chamber. Hijmans stated that the TCF is “incompatible with the GDPR, due to an inherent breach of the principle of fairness and lawfulness.” “People are invited to give consent, whereas most of them don’t know that their profiles are being sold a great number of times a day in order to expose them to personalized ads,” Hijmans said. “Although it concerns the TCF and not the whole real-time bidding system, our decision today will have a major impact on the protection of the personal data of internet users. Order must be restored in the TCF system so that users can regain control over their data,” he added. Navigating the GDPR is a complicated exercise for businesses, regardless of their size. Check out this article to learn more about the GDPR and to see if your business complies with the regulation.
