What Is Cross-Context Behavioral Advertising in Cpra?

Cross-context behavioral advertising (CCBA) as defined by the California Privacy Rights Act (CPRA) refers to “the targeting of advertising to a consumer based on the consumer’s personal information obtained from the consumer’s activity across businesses, distinctly-branded websites, applications, or services, other than the business, distinctly-branded website, application, or service with which the consumer intentionally interacts” (CPRA, 2020). This definition underscores the practice of tracking a consumer's behavior across multiple platforms or brands to deliver personalized advertisements.

The core result of CPRA’s inclusion of CCBA lies in its regulatory requirement for transparency and consumer control. Specifically, when an organization shares personal information with third parties engaged in CCBA, the organization must provide consumers the ability to opt out of such sharing. This translates into a legal mandate for:

• Identification of data sharing practices involving CCBA.
• Clear consumer notification about the use of their data for CCBA.
• Provision of an opt-out mechanism for consumers to prevent their data from being used in cross-context targeted advertising.

The focus on sharing personal information distinguishes CCBA under CPRA from other forms of behavioral advertising that may be conducted solely within a single business context. The regulation thereby addresses privacy concerns arising from data aggregation across unrelated entities and platforms.

The implications of this regulation include:

• Enhanced consumer privacy protection by limiting unauthorized profiling across different branded environments.
• Increased accountability on businesses to disclose and manage third-party data sharing practices.
• Potential reduction in effectiveness of cross-platform targeted ads due to widespread opt-outs.

This aligns with findings from prior research on privacy regulations impacting online advertising dynamics. For example, studies indicate that consumer opt-out mechanisms significantly affect the scope and precision of targeted ads (Goldfarb & Tucker, 2011)[^1]. The CPRA’s stance on CCBA reinforces these trends by embedding opt-out rights within statutory law.

In summary, CPRA’s definition and regulation of cross-context behavioral advertising establish a legal framework emphasizing consumer choice and data sharing transparency. This approach fundamentally alters how businesses engage in personalized advertising across multiple digital contexts.

[^1]: Goldfarb, A., & Tucker, C. (2011). Privacy Regulation and Online Advertising. Management Science, 57(1), 57-71. https://doi.org/10.1287/mnsc.1100.1193