A blue and green banner with the Algorix logo in the center and various icons representing iab tech lab mspa and user privacy.

Guide to IAB’s Multi-State Privacy Agreement (MSPA): What It Means for Publishers and Advertisers

The current landscape of user privacy is rapidly evolving due to the increasing number of privacy regulations worldwide. Organizations are facing challenges in protecting personal data and meeting regulatory requirements. With more and more users demanding greater privacy and transparency, businesses must adapt and comply.
The changing legal landscape of consumer data privacy laws like the California Consumer Privacy Act (CCPA) also affects user data ownership, allowing consumers more control over their data. It also imposes new obligations on businesses that collect and use that data.
Following CCPA’s passage, other states have also introduced data privacy legislation. The Virginia Consumer Data Protection Act (CDPA) which took effect on Jan. 1, 2023. It shares similarities with the CCPA in many ways and spurred other states to follow suit.
These new state-level privacy laws have created a complex patchwork of regulations that businesses must navigate. It can be challenging for companies that operate across multiple states. By the end of 2024, 75% of the world’s population will have personal data under modern privacy regulations.
As a result, organizations should focus on tackling the challenges of protecting personal data and meeting regulatory requirements. And this is what the Interactive Advertising Bureau (IAB) aims to address by formulating the Multi-State Privacy Agreement.

What is the MSPA, and why does it matter?

The MSPA is a revised edition of the IAB’s Limited Service Provider Agreement framework, initially developed to facilitate CCPA compliance. However, updated privacy regulations, such as the California Privacy Rights Act (CPRA), which modifies CCPA, require a more comprehensive approach.
The primary goal of the MSPA is to use specialized contractual language to address situations where contracts are not typically in place, such as between publishers and pixel providers, publishers and DSPs, and publisher ad servers and advertiser ad servers. The MSPA relies on a critical contractual distinction between “third parties” and “service providers.”
The framework also sets out requirements for how companies should do data collection and provide transparency. It provides a comprehensive framework for states to protect their citizens’ data from misuse or abuse. At the same time, it allows organizations to use this data for legitimate business purposes.
The new statutes in California, Colorado, Connecticut, Utah, and Virginia, follow a broader “rights-based” approach. This means individuals own their personal information and have the legal right to control it. More states are expected to follow, affecting organizations’ data collection, handling, and user privacy practices. When this happens, the user privacy landscape will be challenging for more organizations.
This has significant implications for publishers and advertisers, who must now adhere to stricter rules about data privacy or face potential legal consequences.

MSPA’s Impact on Publishers and Advertisers

As MSPA primarily focuses on privacy compliance, publishers and advertisers who use data extensively must rethink and recalibrate their strategies on how they can safely and securely handle and manage user data.

Increased data collection and usage transparency

Under the MSPA, businesses must detail disclosures about data collection and usage. This includes information about the types of data collected, the purposes of data collection, and any third parties accessing the data.
Businesses can increase transparency around data usage. For example, publishers providing this information to advertisers allow the latter to have a better understanding of the data they are working with. It also allows them to gain the trust of their users enough to provide first-party data. One survey showed that 84% of users willingly give information to organizations with transparent policies and practices. With the impending removal of third-party cookies, first-party data becomes more valuable.
MSPA requires businesses to implement data security measures that align with industry best practices. Businesses can increase transparency and give users greater confidence that their data is handled responsibly.

Consistent data handling practices

MSPA requires businesses to implement consistent data-handling practices across all states. This can reduce confusion and increase transparency for advertisers operating in multiple states. There’s assurance that data handling practices follow the same industry practice. With a uniform framework, it is easier for publishers and advertisers to manage data.

Maintain user privacy and targeting

The MSPA establishes relationships between service providers to support various use cases while respecting consumer opt-out preferences, including “sales” opt-out. These use cases include measurement, frequency capping, and programmatic advertising relying on contextual signals or first-party segments. If a consumer opts out, these activities cannot proceed unless a service provider agreement is in place, which the MSPA facilitates.
Advertisers that only work with service providers (without engaging in targeted advertising or sharing data) can benefit from the MSPA’s vast network of privacy-protective ad-tech firms that can act as service providers according to the MSPA’s terms.

AlgoriX’s Commitment to User Privacy

The IAB’s Multi-State Privacy Agreement (MSPA) is a major step forward in the effort to protect consumer privacy. It is a comprehensive agreement between advertisers, publishers, and other entities that sets out how personal data should be collected and used.
At AlgoriX, we understand the importance of protecting user data and privacy. We have continuously put user privacy first and strive to ensure that our users have complete control over their data. We constantly update our systems to ensure our users’ highest security and privacy.
That’s why, as part of the company’s commitment to global privacy and market transparency, we’ve recently signed IAB’s MSPA framework. In February of this year, AlgoriX also joined IAB Europe’s Transparency and Consent Framework (TCF).

Work with a reliable partner that’s always at the forefront of the industry’s best practices. Connect with our experts today!



Sign Up
to Our Newsletter

Get the latest company and industry updates.

Related Posts

Our Partners

Subscribe to AlgoriX

Join Our Algorian Family

Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.