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This covers using using ads.txt and app-ads.txt to disallow buying or selling ads for a domain.
It can be used as an advertising industry opt-out by using the placeholder record to completely forbid third party ad buying or selling anywhere ads.txt / app-ads.txt are respected.
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Is there a reason the files needs to be published on root and not in .well-known/ ?
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It just wasn't standardized that way. It wouldn't help if they moved it at this point since then you would just need to make sure that it's at both locations.