Direct Marketing Association finalizes self-regulation principles for online marketing

Business Wire, Jan 28, 1997

SAN DIEGO, Calif.--(BUSINESS WIRE)--Jan. 28, 1997--The Direct Marketing Association Board of Directors has formally approved self-regulatory principles for online marketing that incorporate sending unsolicited marketing e-mail, collecting data online from or about children, providing notice to consumers of how marketing information may be collected online, and offering them an opportunity to opt out of this process.

The principles were first drafted by the DMA and the Interactive Services Association last Spring and shared with the Federal Trade Commission at a special workshop in June 1996. Both organizations since have refined the principles specifically for their memberships, and the DMA, in approving the principles formally, has provided marketers with examples of how each principle can be implemented.

"Consumers must be comfortable in the online marketplace," said Pat Faley, vice president, consumer affairs, DMA. "In the area of privacy, this means making sure consumer concerns about how marketing information is gathered and used online are adequately addressed.

"With these principles, the DMA is seeking to provide all marketers -- whether established companies or cyber-entrepreneurs -- with the guidance needed to assure consumers that they have choices in how marketers may use information about them," Faley said.

Each principle features a core statement with an illustration of how to implement the principle in practice. For example, one principle on providing notice to consumers is as follows: Core statement:: "The notice (for how consumer marketing information is used) should be easy to find, easy to read, and easy to understand."

Illustration: "A marketer should post its notice so as to enable the consumer to learn about the marketer's information practices in a manner that permits a consumer effective choice over the collection and disclosure of personal information.

For example:

A marketer operating a World Wide Web site that collects personal information from individuals who visit it could post notice of its information practices on its home page or on the page where information is collected (e.g. survey questionnaire).

A marketer could provide an icon on its home page that, when clicked, will furnish the consumer with access to additional screens disclosing the marketer's information practices."

Beginning February 1, 1997, these principles will be posted in full on the DMA's Web site: www.the-dma.org or may be obtained by contacting the DMA's fax-on-demand service at 212 790-1400, and asking for document number 8512.

"To educate DMA members, the DMA will undertake an ongoing communications effort to inform businesses, organizations and policymakers about these principles and how to execute them," Faley said. "We believe the FTC -- bolstered by the Clinton Administration's recent report on the Global Information Infrastructure -- is sending the right signals in allowing the marketplace to determine the ultimate promise of online commerce."

Faley noted that this effort will include conference programming -- including a spotlight at the upcoming first-ever DMA net.marketing conference (March 9-11, 1997) in New York City, as well as other future DMA conference events.

The principles will also be enforced through the peer-review body of the DMA, its Committee on Ethical Business Practice. One other DMA body, the DMA Ethics Policy Committee, will further refine and develop these principles as knowledge about online marketing advances.

The Direct Marketing Association (DMA) is the largest trade association for businesses interested in database and interactive marketing, with more than 3,600 member companies from the United States and 49 other nations. Founded in 1917, its members include direct marketers from every business segment as well as the non-profit and electronic marketing sectors.

CONTACT: Direct Marketing Association, New York

Chet Dalzell, 212/790-1525