Regulatory Environment Ethical Legal Issues In Direct Marketing - PowerPoint - PowerPoint by leadgendocs

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									Regulatory Environment:
Ethical & Legal Issues
In Direct Marketing

        Chapter 12



         Contemporary Direct Marketing -
                  Chapter 12
        Direct Marketing Association
                   (DMA)
   The DMA has established the guidelines for
    ethical business practices
      www.the-dma.org/library/guidelines/ethicalguidelines.shtml

    They are intended to provide individuals and
    organizations involved in direct marketing with
    generally accepted principles
    of conduct.


                         Contemporary Direct Marketing -
                                  Chapter 12
DMA Ethics and Consumer Affairs

   This office assists marketers in
    maintaining consumer and community
    relationships that are based on fair and
    ethical principles.



              Contemporary Direct Marketing -
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    Services Within the Ethics and
    Consumer Affairs Department

   Mail Preference Service (MPS)

   Telephone Preference Service (TPS)

   E-Mail Preference Service (EPS)



               Contemporary Direct Marketing -
                        Chapter 12
Basic Consumer Rights
1.   The   Right   to   Safety
2.   The   Right   to   Be Informed
3.   The   Right   to   Selection
4.   The   Right   to   Confidentiality
5.   The   Right   to   Privacy


               Contemporary Direct Marketing -
                        Chapter 12
Types of Information
   General Descriptive Information

   Ownership Information

   Product Purchase Information

   Sensitive/Confidential Information
              Contemporary Direct Marketing -
                       Chapter 12
    Consumer Privacy Segments
   Privacy Unconcerned

   Privacy Fundamentalists

   Privacy Pragmatists



              Contemporary Direct Marketing -
                       Chapter 12
            DMA Privacy Promise
The DMA “Privacy Promise” provides public assurance
 that all members of the DMA will be following certain
 specific “practices” to protect consumer privacy.




                   Contemporary Direct Marketing -
                            Chapter 12
     The Four Components of the
           Privacy Promise
1.    Provide customers with notice of their
      ability to “opt-out” of information
      exchanges.

2.    Honor customer opt out request not to have
      their contact information transferred to
      others for marketing purposes.


                Contemporary Direct Marketing -
                         Chapter 12
The Four Components of the
Privacy Promise (con’t.)
3.   Accept & maintain consumer requests to be
     on an in-house suppress file to stop
     receiving solicitations from your company.

4.   Use the DMA Preference Services.




               Contemporary Direct Marketing -
                        Chapter 12
Regulatory Authorities of
Direct Marketing
   Federal Trade Commission
   Federal Communication Commission
   United States Postal Service
   State and Local Regulation
   Private Organizations



             Contemporary Direct Marketing -
                      Chapter 12
Federal Trade commission
   The FTC is charged with regulating content of
    promotional messages used in interstate commerce
   FTC Act and the Wheeler-Lea Amendment (public
    health-foods, drugs, cosmetics and therapeutic
    devices)
   FTC Act prohibits unfair or deceptive advertising
   There are many rules and guidelines that all
    merchandisers must abide by
       Mail, telephone, fax, and computer order merchandisers


                    Contemporary Direct Marketing -
                             Chapter 12
Federal Communication
Commission
   Established by the Communication Act
    of 1934
   Charged with regulating interstate and
    international communications by radio,
    television, wire, satellite and cable
   Enforces the Telephone Consumer
    Protection Act (TCPA) & its new DNC
    legislation
              Contemporary Direct Marketing -
                       Chapter 12
United States Postal Service
   USPS has rules and
    regulations that
    impact the
    promotional
    activities of direct
    marketers




                Contemporary Direct Marketing -
                         Chapter 12
State and Local Regulation
   Specific organizations that use direct
    marketing strategies are closely
    regulated by state regulation
       Insurance companies, lending associations,
        banks and pharmaceutical companies




                 Contemporary Direct Marketing -
                          Chapter 12
Private Organizations
   Better Business Bureaus are sponsored
    by private businesses and organizations
    to prevent promotional abuses through
    common sense regulation
   The Direct Marketing Association(DMA)
    have provided ethical guidelines for use
    by their members and others desiring to
    adhere to them
              Contemporary Direct Marketing -
                       Chapter 12
Privacy Legislation
   Since the 19th century, laws about consumer rights to
    privacy have been constantly evolving with time and
    with technology. In recent years privacy has become
    a major issue for everyone.
   The process of DM has attained new success since
    the explosion of credit cars to the advent of personal
    computers and cyberspace.
   Direct marketers with customer knowledge have an
    edge over the ones that do not, but there is an
    ethical question, how much do we need to know?

                  Contemporary Direct Marketing -
                           Chapter 12
      Privacy Protection Study
            Commission
   Privacy Act of 1974- was mainly
    concerned with databases and mailing
    lists




             Contemporary Direct Marketing -
                      Chapter 12
The Future: Self Regulation Or
Legislation
   Self-regulation is the preferred method
    by direct marketers - “CPO’s”
   Eight step self regulation program for
    direct marketers to follow (see text)
   If direct marketers do not follow the
    policies and procedures, legislation will
    limit their access to public information
   Permission Marketing…the future?
               Contemporary Direct Marketing -
                        Chapter 12
                   Conclusion
   Upholding ethical guidelines in carrying
    out direct marketing activities is crucial to
    the present and future success of the
    direct marketing industry




                 Contemporary Direct Marketing -
                          Chapter 12

								
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