Putting the Consumer First
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Putting the Consumer First

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  • Talk about how when thinking about privacy you have to think across all platforms
  • After you know all the platforms your company is using know what your customers are wanting

Putting the Consumer First Putting the Consumer First Presentation Transcript

  • Putting the Consumer First: A New Outlook for Social Marketing
  • Dennis Dayman, CIPP, CIPP/ITChief Security and PrivacyOfficer, Eloquahttp://www.eloqua.comhttp://blog.eloqua.comhttp://www.deliverability.comTwitter: @ddayman
  • Spencer KollasDirector, Delivery Services,StrongMail Systemshttp://www.strongmail.comhttp://www.strongmail.com/resources/blogs/maximizing-deliverability/http://www.deliverability.comTwitter: @spencerkollas
  • Agenda• Quick look at some important items – What should you be thinking about? – Common Myths – What Should Be Your Concerns? – How Are People Addressing Privacy? – Best Practices• The Current State of Privacy• The Future of Privacy• Enforcement• Options For Help• Q&A
  • Why We Are Here• Business is moving to social media• Open & transparent / Real-time• Scaling efforts with efficiency• Protecting brand trust & brand equity• Avoid common pitfalls• Create a culture of compliance• Regulation is here to stay
  • What Should We Consider?• Platforms• Programs – Blogger / Influencer Outreach – Employee influencers / Paid Review – Reviews / Posts / Blogs / Videos – Gifts / Samples / Contests
  • Preferred Methods of Communication
  • Common Myths• Only bloggers / only Tweets• Only online programs are at risk• The rules are different for digital marketing• My agency will handle it• Build a buzz• Just a comment• Fines & penalties
  • What Are The Concerns?• Public Backlash• Mainstream Media Criticism• Regulatory Action• Two-Way Communications• Scaling efforts (technical & human resources)• Brand Trust & Brand Equity
  • How Are People Addressing This?• Ignorance is not bliss• Your agency *might* handle it• Ad-hoc compliance solutions?• Site-wide disclosures• Affiliate marketing programs
  • Best Practices• Think first• Create a process• Standardize and streamline• Disclose and inform• Document and monitor• Follow up and takedown• Open and transparent• Ask for help
  • The Past In Digital Marketing• Grab whatever you wanted• Opt-out• Gave choice• Privacy policy
  • THE CURRENT STATE OF PRIVACY
  • Current State of Privacy• US – Not a fundamental human right – Patchwork of industry, local, state and federal laws. – Typically an opt-out scheme with a dash of opt-in and notice. – Privacy is a process of need by sector• Canada – Fundamental human right – Personal Information Protection and Electronic Documents Act (PIPEDA) – Privacy law, not an email law – Opt-in in model – Give clear notices on why the need, uses, and secures data. – Gives control of opt-out and inaccurate data – PIPEDA follows an ombudsman model• Europe – Fundamental human right – Privacy law, not an email law – Opt-in in model – E.U. Data Protection Directive – Member nations are compelled to enact data protection laws and create supervisory bodies. – Applies to processing of personal data by automatic means in a filing system
  • Privacy Fundamentals• Notice – When data is used• Purpose – What data being used for• Consent – Not disclosed without permission• Security – Kept secure from abuse and sight• Disclosure – Informed who is collecting• Access- Ability to correct or remove• Accountability – Data collectors held accountable
  • Role of privacy in my email program• Notice: Opt-in in most cases• Choice: Provide opt-out or preference center• Purpose: Use data for only what you said you would use it for• Disclosure: In some countries, you can’t track by default• Don’t sign up customer for whatever you feel• Don’t use to much PII in email programs• Don’t link to customer accounts
  • Privacy practices• Privacy is becoming an increasingly important topic for both brands and consumers – Facebook changes without permission• In the relationship between the advertiser and customer, sensitive information can be transmitted, whether financial or personal – Single Sign On
  • A Global Perspective is Needed LEGEND (as of September 2008) National privacy or data protection law in place Other significant privacy laws in place *Courtesy of the IAPP Emerging privacy or data protection laws
  • Regulatory Landscape© 2011. All rights reserved. Online Trust Alliance (OTA) Slide 20
  • Regulatory Landscape© 2011. All rights reserved. Online Trust Alliance (OTA) Slide 21
  • THE FUTURE STATE OF PRIVACY
  • Privacy in the future for US• Looking at umbrella system like Canada and EU – Notice and consent for covered/sensitive information – Over broad definition – Transferring information to third parties – Notices needs to be on home page – Used for any purpose – Consent for tracking – Opt-out needs to be clear 2 23 3
  • Moving Forward Into The Future- Canada• Fighting Internet and Wireless Spam Act or C28 o Opt-in o Prohibits Commercial Messages o Prohibit installation of programs without consent o No false information - Sender or Subject Lines o No harvesting or dictionary attacks o More than email: IM; SMS; social media; voice, o Other requirements: identification; contact information; unsubscribe mechanism o Certain messages exempted altogether: family or personal relationship; business inquiry/relationship o Proper identification o No more no-reply@ - Unsubscription method o Private Right of Action Included o Enforcement cross border - Can’t hide under HQ location o Protection for “Honest” Mistakes 2 24 4
  • Things to Consider Enforcement
  • Regulatory EnvironmentAs a practical matter, social media is now a regulated industry; and all stakeholders are responsible for compliance with theFTC Guides. As a result, all marketers, agencies, and brands must develop a culture of compliance where the vocabulary of risk management is a central aspect of an advertising strategy.” – Tony DiResta, Partner at Winston & Strawn General Counsel of WOMMA "If law enforcement becomes necessary, our focus will be advertisers, not endorsers – just as it’s always been.” – FTC Factsheet on Update to Endorsement Guides 26
  • FTC RequirementsAll material connections must be disclosed with documented process • Inform & Disclose – Disclosures must be clear & conspicuous – Advertisers and agencies are liable – Create a process that ensures a culture of compliance between advertisers, employees, agencies and influencers • Document & Monitor – Must know what your influencers are saying – Process & procedures must be documented • Follow Up & Takedown – Expectation is not that you will catch everything but you must be responsive and proactive in addressing required compliance27
  • Notable Regulatory Events • FTC action (endorsements) • FTC action (astroturfing) • FTC action (affiliate marketing) • FTC action (endorsements) • State action (deceptive advertising) • UK OFT action (endorsement)28
  • FTC Further Clarification• November 2011: Hyundai, and an agency were investigated by the FTC for blogging campaign designed to build interest in ads premiering during Super Bowl XLV (45) – An advertisers provision of a gift to a blogger for posting specific content promoting the advertisers products or services is likely to constitute a material connection that would not be reasonably expected by readers of the blog. – Investigation was closed • Hyundai did not know in advance about the incentives, which were offered by an employee of Hyundais marketing agency. • Offering an incentive to post about or endorse a Hyundai product was contrary to the social media policies of both Hyundai and its marketing agency.• The “3 M’s” Mnemonic: 1. Mandate a disclosure policy that complies with the law; 2. Make sure people who work for you or with you know what the rules are; and 3. Monitor what theyre doing on your behalf Key takeaways: Have a documented policy and process; monitoring and follow up is a key factor in compliance
  • Risks of Non-Compliance • Court of Public Opinion – Consumers, bloggers, – Social media backlash – Blacklisting • PR Nightmares – Scandals, reports & investigations – Bad press & negative opinions • Regulatory Action / Investigations – Significant legal costs – Penalties and settlement terms – Potential for erosion of brand trust • Legal Exposure / Liability – 3rd party lawsuits / consumer actions – Responsibility for representatives – Lack of documentation30
  • First FTC Investigation “…Bloggers who attend will receive a special gift, and those who post coverage from the event will be entered in a mystery gift card drawing…” “…the [Ann Taylor] case serves to let marketers know that the FTC is keeping a close eye on their interactions with bloggers.”
  • Connections Must Be Disclosed • Tweeted from CES, encouraging his followers to purchase stock • He owned a substantial stake in that company • A 13D disclosure of ownership was filed with the SEC • He failed to disclose his connection in Tweets under FTC guidelines
  • OFT Actions in UK• UK’s OFT took action for Sponsored Tweet programs Handpicked Media - December 2010 – Sponsored Tweet programs lacked disclosure – It is prohibited to use editorial content in the media to promote a product, where the trader has paid for the promotion, without making that clear in the content. – It is also prohibited to mislead consumers by act or omission (for example in relation to any endorsement of the product), where this is likely to have an impact on the consumers decision making about the product. – These rules apply to any trader involved in the promotion, sale or supply of products to or from consumers.
  • Vendor help• CMP.LY – Product line that addresses compliance requirements for SEC, FINRA, FDA, as well as other regulatory needs – Enables companies to create, document, measure and monitor disclosures and other “fine print” in social marketing and communication efforts. – Identifiable icons and URLs, provides a universally recognizable convention that communicates required disclosures across platforms such as Facebook, Twitter, blogs, and other digital media channels
  • Coalition help• Word of Mouth Marketing Association (WOMMA) – Organization dedicated to advancing and advocating the discipline of credible word of mouth marketing – Social Media Marketing Privacy Guidelines • Brands should be open and honest about PII that they are collecting, using and sharing from consumers. • Brands should use PII collected from or about consumers for the purposes that they have clearly communicated. • Brands should collect PII that is relevant and necessary to accomplish the specified purposes. • Brands should not retain PII for longer than necessary to fulfill the specified purposes or to otherwise meet legal requirements. • Brands should employ relevant and reasonable measures to protect PII. • Brands should be accountable for complying with these principles, by providing consumers with a readily accessible means to express concerns or complaints.
  • Questions