Episode 12: Standards for Data Clean Rooms with Jules Polonetsky and Doug Miller

Release Date: January 8, 2025
Podcast: The Monopoly Report
Host: Alan Chappell
Guests:

• Jules Polonetsky: CEO of the Future of Privacy Forum (FPF)
• Doug Miller: Privacy Expert and Senior Fellow at FPF

Introduction

In Episode 12 of The Monopoly Report, host Alan Chappell delves into the intricate world of data clean rooms with two esteemed guests: Jules Polonetsky, CEO of the Future of Privacy Forum, and Doug Miller, a seasoned privacy professional with extensive experience at AOL and Yahoo. The discussion aims to demystify data clean rooms, exploring their definitions, use cases, regulatory challenges, and the path toward standardized practices in the advertising technology (AdTech) landscape.

Defining Data Clean Rooms

Alan initiates the conversation by seeking a clear working definition of data clean rooms. Jules responds by contextualizing the term within the broader landscape of data sharing and privacy:

Jules Polonetsky [02:45]: "It's a big fancy marketing term for a business model built around a set of solutions and techniques."

Doug complements this by referring to the FPF's primer on clean rooms:

Doug Miller [05:54]: "It's a collaboration environment where two or more companies or their partners can perform data analysis on collective data sets and choose what they reveal to one another..."

The duo emphasizes that data clean rooms are not novel concepts but rather an evolution of existing practices aimed at enabling data collaboration while safeguarding privacy.

Use Cases and Problems Addressed by Data Clean Rooms

The conversation transitions to the practical applications of data clean rooms. Doug outlines several key use cases:

Doug Miller [08:29]: "You can figure out how effective your ad campaigns have been... identify audiences for an ad campaign."

Jules adds depth by highlighting the regulatory complexities associated with data usage:

Jules Polonetsky [09:08]: "Data has become in the last 20, 30 years a highly regulated sector. What did you tell the user when you collected data?"

These insights underscore that data clean rooms serve multiple functions—from enhancing ad targeting and measurement to enabling sophisticated market research—while navigating stringent privacy regulations.

Legal and Regulatory Challenges

A significant portion of the discussion centers on the legal implications of data clean rooms. Alan raises pertinent questions about data sales and processing under various jurisdictions:

Alan Chappell [11:41]: "Is the data going into a clean room? Is that a sale of data under say California law? Is it processing data under EU data protection law?"

Jules elaborates on the challenges posed by evolving state laws, particularly California's stringent regulations:

Jules Polonetsky [14:11]: "Almost every major Fortune 500 company had a privacy policy that said we do not sell your personal information... now, almost every company now says at the bottom of their website we sell or share your personal information..."

Doug discusses specific cases, such as the FTC's action against Vizio, highlighting the regulatory scrutiny faced by companies utilizing data clean rooms:

Doug Miller [21:48]: "In the Visio case, the FTC said no personal information IP+ what you viewed was shared with advertisers... Bam. Nailed them on that."

These anecdotes illustrate the precarious balance between leveraging data for business objectives and adhering to evolving privacy laws.

Transitioning to Standardized Practices

Alan probes into the transition from the current fragmented practices to more uniform standards. Doug outlines a three-pronged approach:

Doug Miller [27:21]: "It's the technical chunk... the legal chunk... and the organizational chunk."

Jules emphasizes the need for transparency and due diligence:

Jules Polonetsky [30:31]: "Here's the questions you need to ask... What do you have to de-identify this data? Can you set forward the due diligence questions?"

The guests advocate for a collaborative effort between privacy teams, legal experts, and technologists to establish best practices and standardized protocols for data clean rooms.

Future Outlook and Recommendations

Looking ahead, Jules and Doug offer recommendations for organizations navigating the complexities of data clean rooms:

Doug Miller [33:16]: "Every privacy professional who has anything to do with clean rooms should make a New Year's resolution... start getting smarter about it."

Jules Polonetsky [33:42]: "If you're able to help identify, here are the 10 things you should ask... it’ll drive change."

They stress the importance of proactive engagement, continuous education, and the development of comprehensive guidelines to ensure that data clean rooms are utilized responsibly and in compliance with legal standards.

Conclusion

Episode 12 of The Monopoly Report provides an in-depth exploration of data clean rooms, shedding light on their functionalities, benefits, and the intricate web of legal considerations that accompany their use in the AdTech sector. Jules Polonetsky and Doug Miller underscore the necessity for clear definitions, standardized practices, and robust collaboration between various stakeholders to navigate the evolving landscape of data privacy.

As the episode wraps up, listeners are encouraged to consider the multifaceted nature of data clean rooms and the critical role of privacy professionals in shaping their implementation. The discussion serves as a call to action for organizations to prioritize privacy in their data strategies, ensuring that business objectives are met without compromising consumer trust.

Notable Quotes:

• Jules Polonetsky [02:45]: "It's a big fancy marketing term for a business model built around a set of solutions and techniques."
• Doug Miller [05:54]: "It's a collaboration environment where two or more companies or their partners can perform data analysis on collective data sets..."
• Doug Miller [08:29]: "You can figure out how effective your ad campaigns have been... identify audiences for an ad campaign."
• Jules Polonetsky [09:08]: "Data has become in the last 20, 30 years a highly regulated sector."
• Alan Chappell [11:41]: "Is the data going into a clean room? Is that a sale of data under say California law? Is it processing data under EU data protection law?"
• Jules Polonetsky [14:11]: "Almost every major Fortune 500 company had a privacy policy that said we do not sell your personal information..."
• Doug Miller [21:48]: "In the Visio case, the FTC said no personal information IP+ what you viewed was shared with advertisers... Bam. Nailed them on that."
• Doug Miller [27:21]: "It's the technical chunk... the legal chunk... and the organizational chunk."
• Jules Polonetsky [30:31]: "Here's the questions you need to ask... What do you have to de-identify this data? Can you set forward the due diligence questions?"
• Doug Miller [33:16]: "Every privacy professional who has anything to do with clean rooms should make a New Year's resolution... start getting smarter about it."
• Jules Polonetsky [33:42]: "If you're able to help identify, here are the 10 things you should ask... it’ll drive change."

This comprehensive summary encapsulates the essence of Episode 12 of The Monopoly Report, offering listeners a detailed roadmap to understanding and implementing data clean rooms within the realms of privacy and AdTech.