Opt-in could leave list owners feeling shut out - magazine subscription mailing lists; Consumer Privacy Protection Act - reprinted from Direct - Brief Article

Folio: The Magazine for Magazine Management, Sept 1, 1994 by Jeffrey M. O'Brien

The dreaded specter of opt-in has arisen once again, in the form of the Consumer Privacy Protection Act, a recently introduced piece of legislation that would seriously burden direct marketers by requiring them to obtain prior permission from every person on a list before renting it.

The bill (H.R. 4353), introduced by five-term New Jersey. Republican congressman Dean Gallo, would "require businesses who compile consumer lists for sale to other businesses to notify consumers the list of the sales of the list." In short, a name on a list could not be used until that person gives the okay.

Serious threat or simple protection?

"There are all sorts of misconceptions about this bill." says Bob LeGrand, Gallo's press secretary. "It is pretty obvious that the direct marketing industry, wants to scare everybody into thinking this would be the end of the world."

LeGrand contends that the bill would simply require companies to include a check-off box in their mailings giving consumers the option of appearing on whatever lists they choose - a move that should have little effect on "such a vigorous industry," he claims.

But those on the other side of the issue say the ramifications go much further than that. Although most observers feel that the bill is unlikely to pass in its present form - it's too far-reaching and the opposition's too strong - direct marketers fear that similar legislation could effectively nullify, all current lists until their contents are approved.

Richard Barton, senior vice president of government affairs for the Direct Marketing Association, says Gallo's office is confused about its own bill. "It is dangerous to have someone with no understanding of the industry, legislating it."

Donn Rappaport, chairman of Princeton, New Jersey,-based American List Counsel, says Gallo's bill is unconstitutional and would devastate direct marketing if passed. "It would certainly be incredibly destructive to [the list] business, but also to catalogs, subscriptions, book clubs or anyone one using lists for sales leads."

If nothing else, H.R. 4353 seems sure to start a dialogue aimed at finding a middle ground between marketers and privacy advocates, says Lisa Goldner, president of the National Consumers League in Washington, D.C. "Unless the industry has respect for the individual, it will find this kind of legislation coming down the pike and starting to pass."