Getting Ready for Privacy Principles

Effective July 1, 1999, the Direct Marketing Association will institute a new set of privacy principles for consumer direct marketing. Although the principles focus on "consumer" marketing activities, they also act as a precursor for revised business-to-business practices.

In "The DMA Privacy Promise" final draft memo, the view point of the DMA is that the new rules are "a good marketing practice that will further build customer trust in direct marketing and the effectiveness of direct marketing." Institution of the new rules is intended to show regulators that the DMA continues to dedicate industry resources, knowledge and clout in support of a strong self-regulatory program.

The practices for satisfying the privacy promise are segregated into four areas: notice, opt- out, in-house suppression and DMA suppression.

Notice: Marketers will be required to inform customers on their policies concerning the rental, sale and/or

exchange of customer information. The notice is to include the choice to opt out of the sale, rental or exchange of their customer information. The notice should be provided soon after a prospect converts to a paying customer with at least a yearly follow- up. The notice can be given in a routine customer communication (either by mail, phone, fax, print or e-mail) and must be easy to find, read and understand.

Opt-out: Marketers and list compilers are required to honor individual consumer requests to opt out of the sale, rental or exchange of their individual information. This opt-out status will remain in effect for five years, unless the consumers specifically change their opt-out status.

In-house suppression: An internal suppression file is to be maintained and used to warehouse and suppress consumers not wanting to receive communications from an organization. Mail Preference Service/Telephone Preference Service: Marketers that contact consumers are required to apply the MPS/TPS files as suppression files on external prospect files.