What do online behavioral advertising privacy disclosures communicate to users?

Abstract

Online Behavioral Advertising (OBA), the practice of tailoring ads based on an individual's online activities, has led to privacy concerns. In an attempt to mitigate these privacy concerns, the online advertising industry has proposed the use of OBA disclosures: icons, accompanying taglines, and landing pages intended to inform users about OBA and provide opt-out options. We conducted a 1,505-participant online study to investigate Internet users' perceptions of OBA disclosures. The disclosures failed to clearly notify participants about OBA and inform them about their choices. Half of the participants remembered the ads they saw but only 12% correctly remembered the disclosure taglines attached to ads. When shown the disclosures again, the majority mistakenly believed that ads would pop up if they clicked on disclosures, and more participants incorrectly thought that clicking the disclosures would let them purchase advertisements than correctly understood that they could then opt out of OBA. "AdChoices", the most commonly used tagline, was particularly ineffective at communicating notice and choice. A majority of participants mistakenly believed that opting out would stop all online tracking, not just tailored ads. We dicuss challenges in crafting disclosures and provide suggestions for improvement.