PRIVACY DISCUSSED AT PMA LAW CONFERENCE
Marketers continue to watch consumer privacy legislation and Federal Trade Commission enforcement. The Consumer Privacy Protection Act of 2002, if passed, would override state laws and require data collectors to notify consumers at the time of data collection if the info will be used for any purpose other than the transaction; it also would give a template for notices (including a required notice of changes in privacy policies). The bill is in subcommittee.
Marketers expect a FTC ruling on the Telemarketing Sales Rule in December or January, with a national Do Not Call list all but certain. FTC’s director of the Bureau of Consumer Protection Howard Beales said in October that the national list would be “an early Christmas present” for consumers. A national list would not supercede states’ own lists: About 20 states have lists, and California begins its own list in January 2003, part of “leave us alone legislation” that became law in September. (Minnesota began its list in November, and had nearly 200,000 registrants the first day.) Some worry that marketers could eventually contend with 53 separate lists-one for each state and DC, a federal list, and the Direct Marketing Association’s list.
Be wary of asking for personal data from sweepstakes entrants, lest an aggressive regulator deems that consideration (demanding something of value to play a game of chance), advises Linda Goldstein, partner with Hall Dickler Kent Goldstein & Wood, New York City. “As sensitivity to privacy grows, some regulator could make that argument.” Make personal data option, or offer a premium, she suggests.
