The article discusses the recent class actions filed against companies like Trade Desk and Experian, which allege violations of wiretapping laws due to their involvement in real-time bidding (RTB) for advertisements. The lawsuits claim invasion of privacy and unjust enrichment, suggesting a significant future impact on digital advertising strategies. RTB processes involve multiple parties including publishers, advertisers, and data-sharing platforms, where user data helps advertisers target their campaigns effectively. These developments indicate a growing legal landscape surrounding digital marketing practices and user data privacy rights.
These class actions could have a significant effect on how companies engage in digital advertising in the future, and being willfully blind to their progress only exposes companies to increased litigation exposure.
The suits each claim that the companies' participation in real-time bidding violates California and federal wiretapping statutes, invades users' privacy, and unjustly enriches the defendants.
Advertisers rely on bidstream data to determine which users to bid on and how much to bid, including user device information and public IP addresses.
RTB is the process by which website operators decide which ads to show their users, involving multiple stakeholders like publishers, advertisers, SSPs, DSPs, and ad exchanges.
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