P&G wanted to bypass app tracking transparency rules with its data collection technology in China

Procter & Gamble Co. was one of the companies that partnered with the China Advertising Association to test a new data collection tool designed to bypass Apple’s app tracking transparency rules, reports The Wall Street Journal

The state-sponsored China Advertising Agency developed a new user tracking method called CAID to replace access to an iPhone or iPad’s IDFA or advertising ID. Starting with iOS 14.5, Apple will not allow apps to access a device’s IDFA without the user’s explicit consent, which will impact cross-app and cross-website tracking used for ad targeting.

CAID has conducted tests in China with major companies such as Baidu, ByteDance (TikTok) and Tencent, as well as Proctor and Gamble. Apple began warning developers in mid-March not to bypass app tracking transparency rules using methods like CAID. Apple has told developers that an attempt to bypass the new ad-tracking restrictions will result in removal from the App Store.

“The terms and conditions of the ‌App Store‌ apply equally to all developers around the world, including Apple,” said an Apple spokesperson. The Wall Street Journal“We believe that users should be asked for their consent before being tracked. Apps found to be overriding the user’s choice will be rejected.”

As a major global advertiser, P&G has a vested interest in user tracking and is the largest Western company involved in the effort to create an alternative to app tracking transparency. P&G owns many major brands, including Gillette, Charmin, Pampers, Tide, Bounty, Pantene, Crest, Febreeze and many more.

In a statement, P&G said The Wall Street Journal that it provides input to the China Advertising Agency in an effort to “deliver useful content that consumers want in a way that prioritizes data privacy, transparency and consent.” Delivering useful content to consumers “means partnering with platforms and publishers – both directly and through our advertising associations around the world.”

P&G maintains its own consumer database that does not rely on Facebook, Google and other advertising platforms. According to The Wall Street JournalP&G has built a database of 1.5 million customers around the world with a combination of anonymous consumer IDs and personal information that customers share. P&G largely uses this database in China, where it spends 80 percent of its digital ad purchases on targeted ads.

P&G declined to provide additional details about the CAID tool and did not say whether it will use the technology. It is not yet clear how Apple will respond to CAID if some of the largest companies in the world adopt the ad tracking alternative. When news of the warnings to Chinese developers came out, a Chinese marketing industry veteran said Apple’s actions could “stop” CAID testing.

Other US companies, including Deloitte, PricewaterhouseCoopers and Nielsen, are also working with the China Advertising Agency on CAID.

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