Home Privacy Lawmakers Call RTB An Unfair And Deceptive Business Practice In Letter To The FTC

Lawmakers Call RTB An Unfair And Deceptive Business Practice In Letter To The FTC

SHARE:
It's ... complicated.

A bipartisan group of lawmakers is pushing the Federal Trade Commission to investigate the practice of real-time bidding. (Read the letter here.)

In a letter addressed to FTC Chairman Joseph Simons on Friday, the group, led by Sens. Ron Wyden, D-Ore., and Bill Cassidy, R-La., decries what it calls a “widespread privacy violations by companies in the advertising technology industry.”

Other signatories include Sen. Elizabeth Warren, D-Mass., and Democratic Reps. Anna Eshoo Zoe Lofgren of California. Eshoo and Lofgren introduced a sweeping privacy bill in the House late last year.

Ad tech companies, the letter says, “are selling private data about millions of Americans collected without their knowledge or consent from their phones, computers and smart TVs,” such as device IDs, cookies, location data, IP addresses, gender, age and other demographic data.

This argument is the same one at the heart of a series of complaints filed in Europe which allege that RTB is a violation under the General Data Protection Regulation, because there’s no way to collect informed consent for the sort of intricate data processing that takes place as part of every bid request in a real-time auction.

For more than a year, privacy advocates have been lodging simultaneous complaints on that theme with data protection authorities across the EU.

In May of 2019, for example, Ireland’s Data Protection Commission opened a formal investigation into whether Google’s ad exchange data-processing practices violate the GDPR.

Bid steamed

The letter to the FTC specifically highlights how exchanges will sometimes participate in RTB auctions solely for the purpose of collecting bidstream data “without ever intending to win the auction.”

“Hundreds of potential bidders receive this information, even though only one – the auction winner – will use it to deliver an advertisement,” the letter contends.

Some supply-side platforms have started cutting off exchanges that purposely bid low simply as a way to gain data rather than as a serious bidder in an auction.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

But lawmakers are still incensed by the practice. “Few Americans realize that companies are siphoning off and storing that ‘bidstream data’ to compile exhaustive dossiers about them,” the letter declares.

Special ire is reserved for MobileWalla, a mobile data provider that used location data from phones to profile more than 17,000 Black Lives Matter protesters, according to a June BuzzFeed report, and created segments of evangelicals during the 2016 US presidential election by tracking their location in real time on Election Day.

“There is no effective way to control these tools absent intervention by regulators and Congress,” the letter goes on to say.

In closing, Wyden, Cassidy and co. urge the FTC to use its authority to determine whether ad tech companies and “their data broker partners” have violated federal laws prohibiting unfair and deceptive business practices.

And that, at least for now, is pretty much all that can be done at a federal level, absent a national privacy law, which has almost no chance of passing in this congress.

Must Read

Gamera Raises $1.6 Million To Protect The Open Web’s Media Quality

Gamera, a media quality measurement startup for publishers, announced on Tuesday it raised $1.6 million to promote its service that combines data about a site’s ad experience with data about how its ads perform.

Jamie Seltzer, global chief data and technology officer, Havas Media Network, speaks to AdExchanger at CES 2026.

CES 2026: What’s Real – And What’s BS – When It Comes To AI

Ad industry experts call out trends to watch in 2026 and separate the real AI use cases having an impact today from the AI hype they heard at CES.

New Startup Pinch AI Tackles The Growing Problem Of Ecommerce Return Scams

Fraud is eating into retail profits. A new startup called Pinch AI just launched with $5 million in funding to fight back.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: Shopper Marketing Data

CPG Data Seller SPINS Moves Into Media With MikMak Acquisition

On Wednesday, retail and CPG data company SPINS added a new piece with its acquisition of MikMak, a click-to-buy ad tech and analytics startup that helps optimize their commerce media.

How Valvoline Shifted Marketing Gears When It Became A Pure-Play Retail Brand

Believe it or not, car oil change service company Valvoline is in the midst of a fascinating retail marketing transformation.

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

The Big Story: Live From CES 2026

Agents, streamers and robots, oh my! Live from the C-Space campus at the Aria Casino in Las Vegas, our team breaks down the most interesting ad tech trends we saw at CES this year.