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AdChoices

AdChoices is a voluntary self-regulatory program for online interest-based advertising, administered by the Digital Advertising Alliance (DAA), that seeks to inform consumers about data collection practices used to deliver targeted ads and provide mechanisms for limiting such targeting across participating companies. Launched in 2010 amid rising privacy concerns over behavioral advertising, the initiative features a standardized blue triangular icon displayed on compliant ads, which directs users to explanations of ad relevance and centralized opt-out tools like WebChoices for desktop/mobile and AppChoices for applications, enabling choices for over 100 entities in a single interface. The DAA, formed as a coalition of trade groups including the American Association of Advertising Agencies, Association of National Advertisers, and Network Advertising Initiative, enforces principles of transparency, consent, and data security through accountability programs rather than mandatory regulation, with adoption extending to the U.S., Canada (via 2013 launch), and Europe. Despite claims of broad awareness—such as a DAA-commissioned survey indicating 82% U.S. adult familiarity with the and understanding of its control functions—the program's effectiveness remains contested, with independent studies revealing complex interfaces that hinder s and empirical tests demonstrating persistent personalized ad delivery post-selection, alongside economic analyses showing opted-out users receive 52% lower ad revenue value due to reduced targeting precision. Critics, including researchers, argue that self-certification by industry participants fosters incomplete , as low opt-out rates and tool failures undermine the initiative's goal of empowering users against pervasive data-driven in digital advertising ecosystems.

Overview

Program Definition and Objectives

AdChoices is a self-regulatory program administered by the Digital Advertising Alliance (DAA), a consortium of major U.S. advertising and marketing trade associations including the American Association of Advertising Agencies, American Advertising Federation, Association of National Advertisers, and . The program governs interest-based advertising (IBA), defined as the collection and use of consumer data across non-affiliated websites to deliver tailored online advertisements, by establishing voluntary standards for notice, choice, and accountability among participating companies. Unlike comprehensive data bans or mandatory restrictions, AdChoices permits data-driven personalization unless consumers exercise options, thereby maintaining the economic model of targeted ads that fund free online content while offering users mechanisms to limit such practices. The core objectives of AdChoices center on enhancing consumer transparency regarding for IBA and providing simplified tools for exercising control, without eliminating altogether. This approach seeks to mitigate risks associated with cross-site tracking—such as the use of , device identifiers, or other signals—through industry-enforced principles that require clear disclosures and adherence to signals, fostering trust in digital ecosystems. By prioritizing self-regulation, the program aims to demonstrate proactive governance of ad technologies, potentially reducing the impetus for federal legislation or enforcement actions that could impose uniform prohibitions on data usage. AdChoices distinguishes itself from ad-blocking technologies by focusing on choice over suppression: post-opt-out, companies refrain from IBA but continue serving advertisements, often shifting to contextual relevance based on the viewed page or generic formats, which preserves ad inventory value and supports frequency management without total ad elimination. This framework underscores a commitment to balancing innovation in ad tech—enabling precise targeting that improves relevance and reduces ad waste—with consumer autonomy, as evidenced by the DAA's emphasis on universal icons and centralized choice pages to streamline privacy preferences across participants.

Core Features and Icon Design

The AdChoices icon consists of a small blue triangle, typically positioned in the upper-right corner of participating online advertisements, signaling compliance with self-regulatory principles for interest-based . This visual marker, licensed by the Digital Advertising Alliance (DAA), serves as an entry point for users to access explanations about the ad's targeting basis and available privacy controls. Clicking the icon directs users to a featuring a "Why this ad?" section, which discloses the data practices of the ad network or involved, including categories of collected information such as browsing history or demographics used for . From there, users can exercise granular choices, such as opting out of interest-based ad targeting from the specific company or accessing broader tools for cross-company preferences. In contrast, advertisements from non-participating entities lack this and associated disclosures, forgoing standardized mechanisms under the AdChoices framework. Central to these functionalities is the WebChoices tool, accessible via youradchoices.com or optout.aboutads.info, which enables centralized opt-outs from interest-based advertising across hundreds of participating companies in a single interface, with options preserved via browser extensions like for consistent application across devices. For mobile environments, provides analogous controls within apps, allowing users to select opt-outs per company or in bulk through a unified dashboard. These tools extend to cross-device scenarios, including support for connected TV ads where the icon links to equivalent choice interfaces, ensuring applicability beyond traditional web browsing.

Historical Development

Inception and Early Launch (2010–2012)

The Digital Advertising Alliance (DAA), a consortium of leading U.S. advertising trade associations including the , launched its Self-Regulatory Program for Online Behavioral Advertising in 2010 to address mounting privacy concerns over the collection of consumer data for interest-based advertising. This initiative standardized disclosures amid the proliferation of tracking technologies, such as third-party , which enabled invisible profiling of users across websites for personalized ad targeting—a practice that had intensified since the early 2000s but drew heightened scrutiny by the late 2000s due to limited consumer visibility into data practices. The program's inception represented a proactive industry effort to enhance transparency and provide opt-out options, forestalling potential federal legislation amid consumer backlash against opaque data collection. Building on self-regulatory principles released in July 2009 by the DAA's founding associations—which emphasized enhanced notice of , consumer control over targeted , , and limits on sensitive information use—the 2010 launch introduced the AdChoices icon as a uniform visual cue in interest-based to signal participation and link to choice mechanisms. These principles were partly shaped by (FTC) recommendations, as the agency had issued a 2009 staff report urging to mitigate risks from behavioral while acknowledging the economic value of such practices, thereby influencing the DAA to prioritize voluntary compliance over mandated rules. Early adoption occurred rapidly among major ad networks and companies, with the DAA announcing enforcement of the program's by May and achieving participation from over 100 entities by early , establishing the AdChoices icon as an industry-wide signal without reliance on coercive legislation. This phase focused on verifiable implementation of transparency tools, responding directly to endorsements of self-regulation as a means to balance innovation with privacy protections amid documented public unease over unnotified tracking.

Expansions and Adaptations (2013–2023)

In 2015, the Digital Advertising Alliance (DAA) expanded the AdChoices program to address challenges by launching AppChoices, a tool enabling opt-outs from interest-based ads in mobile applications via device identifiers rather than . This adaptation responded to the shift toward app-based , where traditional mechanisms were ineffective, and included a companion tool for environments to enforce self-regulatory principles across platforms. Enforcement of these mobile guidelines began in May 2015, with participating companies required to comply by September 1 of that year, marking a proactive adjustment to rising mobile usage and concerns. The program also adapted to international contexts through collaborations like the European Interactive Digital Advertising Alliance (EDAA), which implemented AdChoices principles across using the YourOnlineChoices platform for cross-border transparency in behavioral . These efforts integrated with evolving technologies, such as device IDs for cross-app tracking, extending capabilities beyond to maintain amid restrictions on third-party . DAA studies during this period highlighted a "halo effect" from AdChoices icon usage, where visibility increased consumer trust in privacy practices, positively influencing perceptions of targeted ads even among non- users. Consumer awareness of the AdChoices icon grew notably, from approximately 6% in 2013 to 42% by 2016, correlating with expanded education campaigns and icon placements, though surveys indicated persistent gaps in understanding mechanics. Amid criticisms of ineffective self-regulation, the DAA enhanced enforcement through independent accountability programs, issuing compliance reports and addressing violations, while ad blocker adoption surged—with global desktop users rising steadily and reaching hundreds of millions by the late —prompting further refinements to demonstrate value in voluntary s over blanket blocking. These adaptations balanced technological integration with regulatory pressures, such as emerging EU data protection scrutiny, without mandating legislative overhauls.

Recent Updates and Future Directions (2024 Onward)

In June 2024, the Digital Advertising Alliance (DAA) announced WebChoices 2.0, a significant upgrade to the AdChoices opt-out program, transitioning from cookie-dependent mechanisms to a browser-based extension that accommodates non-cookie identifiers such as UID2 (Unified ID 2.0). This update enables consumers to manage preferences across emerging tracking technologies, with participating companies required to integrate by December 31, 2024, followed by a for full . The shift addresses the phasing out of third-party , positioning AdChoices as adaptable to a "cookies and beyond" landscape while maintaining consumer choice for interest-based advertising. WebChoices 2.0 builds on a streamlined adoption process outlined by the DAA in January 2024, facilitating industry transition to persistent signals that persist across devices and sessions without relying on depleting infrastructure. This evolution supports compliance with evolving U.S. state privacy regulations, such as those under the (CCPA), by providing a centralized mechanism that aligns with requirements for honoring consumer signals against data sales or sharing for targeted ads. Proponents argue it serves as a unified compliance bridge amid proliferating state laws—now encompassing 19 jurisdictions by late 2024—potentially mitigating regulatory fragmentation through voluntary standardization rather than bespoke state mandates. Looking ahead, AdChoices' self-regulatory model emphasizes flexibility for future technologies, including AI-enhanced personalization, where rigid legislative bans could stifle innovation; instead, it prioritizes enforceable principles for transparency and choice in data-driven ad targeting. As AI introduces challenges like opaque algorithmic decision-making and heightened data reliance, the program's agility allows iterative updates to principles without awaiting protracted lawmaking, though empirical assessments of enforcement efficacy in AI contexts remain pending.

Operational Framework

Opt-Out Mechanisms and Tools

Users initiate the process by clicking the AdChoices , typically a small or "i" appearing on interest-based advertisements, which redirects them to the Digital Advertising Alliance's (DAA) control page at aboutads.info. This leads to WebChoices, a browser-based tool enabling users to review participating companies' privacy policies and select for one or more entities, including a "Choose All" option for aggregated preferences across over 100 ad technology firms. Upon submission via WebChoices, participating companies place in the user's to indicate cessation of and use for cross-site interest-based , preserving the choice for a minimum of five years unless overridden. To mitigate vulnerabilities, the Protect My Choices can be installed, which stores preferences independently and applies them across sites. These mechanisms are - and device-specific, necessitating separate opt-outs for each environment, and choices revert if are deleted, modes are used, or settings block third-party . Opt-outs apply solely to interest-based ads from participants, allowing continued delivery of contextual or generic . AdChoices tools complement but do not supplant (DNT) browser signals, which transmit a general HTTP header requesting websites to forgo behavioral tracking but receive inconsistent compliance due to lack of mandatory standards. In distinction, AdChoices enforces targeted cessation of personalized ads via self-regulatory signals among adherents, without prohibiting all data practices or non-participating trackers.

Compliance Enforcement and Self-Regulation

The Digital Advertising Alliance (DAA) enforces AdChoices compliance through its Accountability Program, which monitors adherence to self-regulatory principles governing interest-based advertising data collection and use. Administered by independent third-party organizations such as BBB National Programs, the program conducts proactive reviews, audits, and investigations to verify participant implementation of , , and requirements. These mechanisms emphasize disclosure of data practices, including notices about and options, without relying on government mandates. Enforcement includes issuance of compliance warnings for observed deficiencies, such as incomplete adherence to placement or mechanisms, followed by required remediation. The has pursued over 125 public enforcement actions against non-compliant entities, ranging from educational guidance to formal sanctions, promoting across the advertising ecosystem. Third-party verifiers play a central role by independently assessing , issuing reports that detail resolved issues and overall adherence rates, thereby enabling . This self-regulatory framework contrasts with statutory regimes by prioritizing industry-led flexibility, allowing adaptations to technological changes like and connected advertising while maintaining core principles. Enforcement actions underscore the program's commitment to voluntary yet binding commitments, with non-compliance potentially leading to expulsion from DAA participation or referral to regulators in egregious cases. Public reporting of these efforts, including aggregated data, aims to build through demonstrable oversight, though critics note the inherent limitations of self-policing absent external .

Participants and Implementation

Key Organizations and Trade Associations

The Digital Advertising Alliance (DAA) functions as the central non-profit entity administering the AdChoices self-regulatory program in the United States, focusing on establishing and enforcing privacy standards for interest-based digital advertising. Formed as a consortium of major trade associations, including the Association of National Advertisers (ANA)—which represents over 1,850 member companies and organizations spanning advertisers and marketers—and the American Association of Advertising Agencies (AAAA), the DAA aggregates industry leadership to promote unified compliance across advertising ecosystems. These backing associations, established to advance marketing interests (e.g., AAAA founded in 1917), drive program integrity by sponsoring principles that their members voluntarily adopt, thereby extending reach without coercive measures. Internationally, analogous bodies adapt AdChoices for jurisdictional alignment, such as the European Interactive Digital Advertising Alliance (EDAA), which oversees self-regulation for data-driven advertising in . The EDAA, operational since at least 2019, licenses the AdChoices icon to entities engaging in online behavioral practices, ensuring consistency with regional data protection norms while mirroring the DAA's emphasis on transparency tools like YourOnlineChoices.eu. These organizations foster participation through associative pressure and frameworks, where trade groups incentivize member adherence via shared standards and independent , achieving voluntary industry-wide uptake as evidenced by the DAA's oversight of hundreds of participants across ad networks and publishers. This self-regulatory model relies on collaborative rather than mandates, with associations monitoring compliance to sustain program credibility and broad adoption.

Participating Companies and Global Reach

The AdChoices program involves hundreds of participating companies, encompassing advertising networks, data providers, publishers, and agencies that commit to displaying the AdChoices icon on interest-based advertisements and honoring consumer opt-out preferences. These entities, which represent thousands of brands, adhere to self-regulatory principles established by the Digital Advertising Alliance (DAA) in the United States, ensuring transparency in data usage for targeted online ads. The WebChoices consumer choice tool facilitates centralized opt-outs from over 100 ad technology firms, allowing users to manage preferences across multiple participants in a single interface. In , the program operates under the Digital Advertising Alliance of Canada (DAAC), with a dedicated portal listing participants such as major ad networks and publishers who pledge to apply similar standards for interest-based advertising. European coverage is managed through the European Interactive Digital Advertising Alliance (EDAA) and the Your Online Choices platform, where companies provide tools for users to view, edit, or reject for personalized ads, adapting to regional requirements like the General Data Protection Regulation (GDPR). This includes granular controls over advertising categories and vendors, supporting legal obligations for explicit consent or objection to profiling under EU law. Participation spans the online advertising ecosystem but is confined to digital interest-based advertising, excluding contextual ads that rely on page content rather than user data or non-digital formats such as television or print. The program's geographic focus remains primarily on and , with limited formal structures elsewhere despite the icon's widespread display exceeding one trillion impressions monthly worldwide.

Reception and Empirical Assessment

Consumer Awareness and Behavioral Data

A 2016 survey commissioned by the Digital Advertising Alliance (DAA) found that 42% of U.S. adults were aware of the AdChoices icon, marking an increase from prior years, while 28% reported having interacted with it by clicking the icon or visiting the associated website. Among those noticing the icon, 39% indicated that the available information and opt-out options made them feel more positive about . Subsequent DAA surveys showed recognition rising to 82% by 2021, with 81% of respondents understanding its purpose as providing controls over ads. Despite growing awareness, actual opt-out engagement remains limited, as evidenced by empirical analyses of ad exchange data revealing that only a small fraction of exposed users select opt-outs, resulting in minimal shifts in behavioral targeting practices. Usability studies highlight challenges such as the icon's small size and inconsistent placement on webpages, which reduce visibility and complicate access to choices. In parallel, ad blocker adoption outpaces selective opt-outs, with 28% of U.S. adults reporting use in the month prior to a 2015 survey and global rates reaching 31.5% by early 2024. Consumers often prefer ad blockers for their blanket approach to interrupting tracking and ads across sites, bypassing the need to navigate per-ad or per-company opt-outs via the AdChoices mechanism. A 2020 analysis of 150 popular websites confirmed low uptake of opt-out tools, attributing it partly to fragmented interfaces and lack of persistent enforcement. These patterns indicate that while awareness informs some behavioral shifts, such as selective ad avoidance, comprehensive blocking tools dominate privacy-protective actions among engaged users.

Industry Metrics and Adoption Rates

AdChoices has achieved widespread adoption within the digital advertising ecosystem, with hundreds of companies committing to the program's self-regulatory principles for interest-based advertising. Major ad networks, tech providers, and brands, including , , and AdTheorent, participate by implementing opt-out mechanisms and displaying the AdChoices icon on relevant ads. This participation extends to approximately 98 companies offering choices via the WebChoices tool as of recent updates. The icon's display underscores high penetration among major platforms, served over 1 trillion times per month globally, reflecting routine integration into ad deliveries by compliant publishers and advertisers. The DAA's Brand and Publisher Playbook provides guidelines for incorporating the icon into privacy notices and ad experiences, promoting standardized "privacy storytelling" to signal compliance and maintain operational transparency without disrupting ad flows. Compliance metrics indicate robust enforcement, with the Digital Advertising Accountability Program (DAAP) conducting ongoing monitoring of websites and apps, resolving identified issues through inquiries and corrective actions; by 2019, this had resulted in over 100 enforcement actions supporting principle adherence. Amid regulatory shifts like third-party , AdChoices sustains viability through adaptations such as WebChoices 2.0, which accommodates non-cookie technologies and carries an end-of-2024 adoption deadline for participants, evidencing continued industry reliance on the framework over alternatives.

Criticisms and Debates

Privacy and Tracking Limitations

AdChoices opt-out mechanisms restrict the use of collected data for interest-based but do not halt all forms of or tracking by participating companies. Specifically, companies may continue gathering user data for purposes such as internal analytics, fraud prevention, service improvement, and , which relies on page content rather than user profiles. This scoped limitation means users remain subject to generic or contextual ads, preserving ad revenue streams while curbing only personalized targeting based on cross-site behavior. Empirical tests have highlighted gaps in opt-out efficacy, particularly regarding persistence across devices and sessions. In a 2021 investigation by The Markup, a journalist opted out via the AdChoices portal covering over 100 ad tech firms, yet subsequently encountered ads appearing tailored to recent browsing activity, such as promotions for specific products viewed post-opt-out. These findings suggest incomplete blocking of cross-device tracking or reliance on non-cookie identifiers, as opt-outs primarily set persistent cookies that can be cleared by users or browsers, necessitating repeated opting out. Such limitations underscore AdChoices as a partial measure rather than comprehensive privacy protection, trading off against absolutist positions advocating total data collection bans that could undermine the viability of ad-supported online content. enables efficient revenue models with fewer ad impressions per user compared to untargeted alternatives, which often demand higher volumes or alternative monetization like paywalls to sustain free access. Critics favoring outright prohibitions argue this compromise inadequately addresses pervasive tracking, though empirical reliance on funds approximately 70% of content without direct user payments.

Effectiveness and Enforcement Challenges

Studies indicate that opt-out rates under AdChoices remain low, with only 0.23% of American ad impressions originating from users who have exercised choices for online behavioral advertising. This limited adoption persists despite the program's availability since , attributed in part to low consumer awareness, as 28% of U.S. respondents in a survey reported unfamiliarity with ad filtering programs including AdChoices, while 43% had never used them. Usability evaluations further highlight challenges, revealing that tools like those under AdChoices suffer from serious flaws, such as confusing interfaces, lack of default protections, and insufficient feedback on whether s are active, leading participants in a 45-person study to frequently misconfigure or abandon them. Skepticism toward industry-managed mechanisms exacerbates low engagement, with users questioning the reliability of cookie-based signals that can be inadvertently deleted or bypassed, as demonstrated in practical tests where opt-outs failed for multiple companies due to technical glitches and incomplete processing across 129 participants. Privacy advocates, including researchers from institutions like Carnegie Mellon, argue that these self-regulatory tools fail to curb pervasive tracking, advocating for mandatory regulations to enforce broader data protections rather than relying on voluntary opt-outs that do not halt data collection itself. In contrast, industry representatives from the Digital Advertising Alliance (DAA) maintain that low opt-out rates reflect consumer tolerance for interest-based ads, positioning AdChoices as evidence of proactive self-governance that averts heavier regulatory intervention. Enforcement within the voluntary framework reveals gaps, as compliance monitoring by bodies like the DAA's Accountability Program issues warnings and guidance but lacks punitive measures such as fines, depending instead on cooperative corrections. Annual reports from affiliated programs, such as Canada's AdChoices Accountability Program, document incomplete adherence, with only 69% of first-party participants fully compliant in 2024 across 63 reviewed entities, alongside handling of consumer complaints primarily through opt-out disputes rather than systemic overhauls. Prior to 2024, challenges intensified with the shift away from cookies toward device fingerprinting and other identifier-free methods, complicating opt-out enforcement since AdChoices signals traditionally rely on persistent cookies, exposing limitations in applying self-regulatory principles to non-cookie technologies without robust verification. Critics contend this underscores self-regulation's inherent tensions, where industry incentives prioritize ad delivery over stringent privacy curbs, while proponents cite ongoing expansions in monitoring—such as reviews of first- and third-party compliance—as steps toward accountability without mandating external oversight.

Broader Impacts

Effects on the Advertising Ecosystem

AdChoices has sustained the viability of , a cornerstone of digital revenue generation, by integrating mechanisms that minimally impede data utilization. Low rates—evidenced by AdChoices signals appearing in just 0.23% of U.S. ad impressions—enable the continued efficacy of interest-based ads, which outperform non-targeted alternatives in and support free online content delivery. This framework preserves the economic incentives for innovation in ad personalization technologies, as publishers and advertisers maintain access to behavioral insights without widespread signal loss. The program's standardized AdChoices icon has mitigated fragmentation in transparency practices, establishing a uniform visual cue across ad formats and platforms. Developed as a simple, universal symbol, the 's implementation guidelines—covering sizing, placement in video ads since 2015, and mobile adaptations—ensure consistent signaling that enhances interoperability in the . This reduces operational redundancies for participants, streamlining and in a fragmented market dominated by diverse networks and devices. For smaller publishers, AdChoices promotes efficient through accessible guidelines that simplify integration into targeted ad , avoiding the complexities of fragmented or standards. By embedding principles of responsible practices into industry-wide norms, it balances with operational flexibility, as seen in the of dual-track by brands and networks. This self-regulatory model fosters ecosystem resilience, enabling smaller entities to compete by leveraging shared tools rather than incurring disproportionate costs, thereby sustaining diverse content provision amid competitive pressures.

Influence on Policy and Regulation

The AdChoices program has shaped U.S. policy by exemplifying effective self-regulation in online behavioral advertising, prompting the Federal Trade Commission (FTC) to endorse voluntary mechanisms over mandatory mandates. In its 2009 staff report on self-regulatory principles for online behavioral advertising, the FTC highlighted the industry's initiatives, including precursors to AdChoices, as providing transparency and consumer choice tools that could mitigate privacy concerns without prescriptive legislation. Subsequent FTC statements, such as commendations for cross-device tracking enhancements under AdChoices, reinforced this stance, crediting self-regulation for fostering enforceable standards amid evolving technologies. This approach preempted demands for stricter federal rules by demonstrating measurable opt-out adoption and compliance, influencing FTC workshops and guidelines to prioritize industry-led adaptability. AdChoices has integrated with state-level regulations, notably California's Consumer Privacy Act (CCPA), positioning its infrastructure as a compliant alternative to bespoke systems. In November 2019, the Digital Advertising Alliance (DAA), administrator of AdChoices, launched a CCPA-specific tool built on the , enabling cross-site "Do Not Sell" signals akin to interest-based ad choices. This allowed participating entities to AdChoices for CCPA disclosures and controls, particularly in apps and web environments, thereby aligning self-regulation with statutory requirements for personal data sales effective January 1, 2020. Such adaptations have extended to other state privacy laws, like those in and , where AdChoices' framework supports granular choice mechanisms, reducing the impetus for fragmented enforcement by demonstrating unified, low-friction compliance. In response to regulatory pressures like third-party cookie deprecation, AdChoices evolved to underscore self-regulation's resilience against technological mandates. The DAA's June 12, 2024, announcement of WebChoices 2.0 transitioned from cookie-based opt-outs to browser extensions and signals, enabling persistent choices amid browser vendors' phasing plans—initially set for late 2024 by but later paused. This update, mandating integration by December 31, 2024, for participants, illustrated proactive alignment with global shifts toward , countering arguments for outright data bans by preserving ad relevance while honoring preferences. Empirical tracking data from these enhancements has bolstered claims of efficacy, influencing policymakers to view AdChoices as a scalable model for balancing and consent over ideologically driven prohibitions. Longitudinally, AdChoices informs international standards by exporting U.S. self-regulatory tenets to frameworks like Europe's and GDPR consent models, where its icon and choice tools have analogs in programs emphasizing notice and . Pro-regulation critiques, often from groups favoring comprehensive bans, have been tempered by evidence of AdChoices' —via audits yielding rates above 90% in monitored campaigns—prioritizing causal links between voluntary tools and reduced tracking complaints over blanket restrictions. This positions the program as a benchmark for minimal-intervention policies, potentially guiding bodies like the EU's toward hybrid approaches that validate consumer benefits through data rather than assumption.

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