That’s my understanding as well. Point 4 being the key factor. They would have to ask, and give a clear yes/no option, on whether the user wants ads to be perso

That’s my understanding as well. Point 4 being the key factor. They would have to ask, and give a clear yes/no option, on whether the user wants ads to be personalized based on their previous activity on the app (which posts they have liked, how many seconds they spent looking at posts, etc.) Otherwise, the ads would be based solely on the context that they are displayed in. Which seems perfectly fine to me.