Groups call on FTC for mobile marketing safeguards
Non-profits the Center for Digital Democracy and the U.S. Public Interest Research Group announced amendments to their 2006 complaint on interactive marketing techniques and consumer privacy concerns to include mobile marketing. During testimony at the Federal Trade Commission's "Beyond Voice: Mapping the Mobile Marketplace" event, Center for Digital Democracy executive director Jeff Chester said "The 'mobile marketing ecosystem,' as the industry terms it, poses new threats to consumers. Many of the same practices that have raised concern about online privacy--including profiling and behavioral targeting--are being migrated over to what is called the 'mobile web.'" Chester called on the FTC to assume a leadership role to guarantee consumer interests are reflected in mobile marketing applications and data collection techniques.
The amendment to the CDD/USPIRG complaint encompasses mobile marketing technologies that exploit consumer data like gender, age, language, income, education and location. "Mobile marketers--out of view from most policymakers and consumers--are creating what the rules of the mobile web experience will be for the public," Chester added. "Consumers need to be part of the mobile web equation, not as passive recipients of advertising and services, but as co-creators of how this new marketplace should be structured."
For more on the CDD/USPIRG complaint:
- read this release
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By Eric Holmen | Posted 1:59pm | May 7, 2008
In light of the complaints filed with the Federal Trade Commission on 6th May by the Center for Digital Democracy and the US Public Interest Research Group, we at SmartReply wish to express our support of both advocacy groups in their effort to safeguard Americans’ privacy rights in the realm of mobile marketing. As a leading provider of mobile marketing services to many of the nation’s leading retailers and brands, we have unwaveringly advocated for respectful and unintrusive mobile communications. As mobile technology continues to evolve, it will be vital for companies and oversight entities like the FTC to work in conjunction, to preserve the privacy of ordinary citizens.
We agree with Mr. Chester’s assertion that the FTC must take a proactive stance to stave off dubiously ethical practices, particularly as mobile marketing represents a highly personal method of reaching target audiences. We acknowledge, however, that this personalized communication is the very aspect of the medium that makes it so effective from a marketing standpoint. We might also point out that the goal of regulation should not be to squelch all marketing or advertising messaging, but rather to ensure that it is consistently welcome and invited, and that it provides value and service to consumers.
As such, we support the current FTC opt-in requirement for mobile messaging, and would support any initiatives that build on that policy. People should be required to opt-in to mobile programs, but we believe the opt-in process should remain simple (a yes text from a consumer) so as not to place undue burden on either the company or the consumer. Since the technology will continue to mature and expand, it doesn't make sense that a consumer would have to first opt-in to get a text message, then opt-in to share their personally identifiable information, then opt-in to share location-based data, then opt-in to use commerce features, etc. Of equal if not greater importance, the ability to opt-out should also be swift, complete and painless.
If the FTC applies its current standards – the opt-in requirements in particular - to emerging segments of the mobile market (including campaigns that capitalize on location awareness), we believe that mobile marketing will continue to be a welcome, effective and potentially rewarding avenue of communication between consumers and the companies that serve them.
Eric Holmen, President
SmartReply Inc, Irvine, CA