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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
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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.
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