Data protection 2013 Data Protection 2013 Friday 8 February Friday 8 February #dmadata #dmadata Supported byby Supported
Agenda8.30am Registration and breakfast9.15am Welcome from the Chair David Reed, Editor, DataIQ9.25am Keynote address Christopher Graham, Information Commissioner10.10am Questions10.15am The new EU Data Protection legal framework – Changes and impact on the direct marketing industry Mathilde Fiquet, EU Legal Affairs Adviser, FEDMA Caroline Roberts, Director of Public Affairs, DMA10.45am EU data protection: What can you do to make a difference? Chris Combemale, Executive Director, DMA10.55am Questions11.00am Refreshments and networking11.20am Rising to the privacy challenge Richard Beaumont, Head of Service Development, Cookie Collective LLP11.50am Future forward – A look ahead David Coplin, Chief Envisioning Officer, Microsoft12.35pm Questions12.55pm Closing comments from Chair David Reed, Editor, DataIQ1.00pm Lunch and networking
Welcome from the ChairDavid Reed, Editor, Data IQ#dmadata
Keynote addressChristopher Graham, Information Commissioner#dmadata
QuestionsPlease put your questions to our speakers!#dmadata
The new EU data protection legalframework – changes and impact onthe direct marketing industryMathilde Fiquet, EU Legal Affairs Adviser, FEDMACaroline Roberts, Director of Public Affairs, DMA#dmadata
The new EU Data Protection Legal FrameworkCaroline Roberts – Director of Public Affairs, DMA UK Mathilde Fiquet – EU Legal Affairs Adviser, FEDMA Mathilde Fquet
What is FEDMA? •Federation of Direct and Interactive MarketingIntroductionWhat is FEDMA •Membership - national associations andNew rules and companiesImpact on DirectMarketing •Defending the interest of direct marketing inDMA view BrusselsThe EU decision-making process •Involved in data protection discussions for moreTiming than 20 yearsCurrent positionThe DMA’s actions • With industry self regulation codes of conduct approved by the Article 29 Working Party
IntroductionIntroduction Why now?New rules andimpact on DirectMarketing What is being proposed and why is itDMA view important?The EU decision-making processTiming The EU decision-making processCurrent positionThe DMA’s actions Timing DMA and FEDMA lobbying activity
Why now? 1995 European Directive (implemented into UK by 1998 Data Protection Act) showing its age…IntroductionNew rules and 1) New technologies and more compleximpact on DirectMarketing information networksDMA view 2) Lack of common European law and differencesThe EU decision-making process in national implementationTiming 3) Consumer concern over privacyCurrent positionThe DMA’s actions 4) Data protection now fundamental right under EU Charter of Fundamental Rights
The European Commission’s proposalIntroductionNew rules and •The General Data Protection Regulationimpact on Direct as opposed to a directiveMarketingDMA view •For the Online WorldThe EU decision-making process Willing to address all issues raised by technological developmentsTimingCurrent positionThe DMA’s actions •Lack of understanding of the direct marketing industry, how we process data and do profiling
Impact on direct Marketing •Potential opt-in for all communication channelsIntroduction •Potential ban of profilingNew rules and •Potential ban on list trading and leadimpact on DirectMarketingDMA view generationThe EU decision-making process •Consent would have to be explicitTimingCurrent position •New information requirements and rights of the data subject, e.g Right to be ForgottenThe DMA’s actions
DMA viewIntroduction We welcome aim to update law, protect consumersNew rules and and simplify bureaucracy BUT……….impact on DirectMarketingDMA view of • Proposals do not achieve thatproposalsThe EU decision- •Fairer balance neededmaking processTiming •Will stifle innovation, add to costs and placeCurrent position unnecessary obstacles to e-commerce jobs growthThe DMA’s actions •Particularly harmful to SMEs
The process of EU decision-making Introduction New rules and impact on Direct Marketing Proposes DMA view Legislation EU decision- making process Timing Current position The DMA’s actions Codecision AdoptionFEDERATION OF EUROPEAN DIRECT AND INTERACTIVEMARKETING Into National Law
Timing in the EU institutions •Commission proposal for a Regulation in January 2012IntroductionNew rules andimpact on Direct • Parliamentary lead committee draft report:Marketing 9 Jan 2013DMA view •Deadline for tabling amendments: 27 Feb 2013The EU decision-making process •Expected vote in leading committee: April 2013Timing •Trialogue with Council: Autumn 2013Current position •Expected plenary vote (1st reading): End 2013The DMA’s actions •Takes effect: 2 years after adoption – 2016?
Current position – Council of Ministers Council of Ministers Working Group (DAPIX)Introduction meeting monthlyNew rules andimpact on Direct Initial indications that UK Government (andMarketing others) taking helpful and business-friendlyDMA view stanceThe EU decision-making processTiming Many object to delegated acts; find it too prescriptive and would prefer a more Current position principles- based approachThe DMA’s actions UK pushing for a directive, rather than a regulation – as is Germany
Current position - Commission • 4th Dec 2012 – Commissioner Viviane RedingIntroduction spoke in European ParliamentNew rules andimpact on Direct • Said Commission willing to look at:Marketing • More risk-based approach with focus onDMA view type of data being processedThe EU decision-making process • Less prescription – although no detailTiming • Some exemptions for SMEs?Current position • Overall principles must be same for both public and private sectors The DMA’s actions • Delegated and implementing acts – self-regulation perhaps for some?
UK – Commons Justice Select CommitteeIntroduction • DMA submitted evidence to EnquiryNew rules and • Focus on bureaucratic burdens,impact on DirectMarketing benefits of harmonisation, Right to beDMA view ForgottenThe EU decision- • ICO: “it cannot work”…”a regime no-making process one will pay for”.Timing • Report says: “We believe theCurrent position Commission needs to go back to theThe DMA’s actions drawing board and devise a regime which is much less restrictive”
Ministry of Justice Disagrees with Commission’s 2.3bn Euro savings – burdens imposed will far outweigh net benefits: inIntroduction UK cost @ £100-360 millionNew rules andimpact on Direct Many unintended consequences, esp for SMEsMarketing Changes to consent, profiling & definition ofDMA view personal data particularly costly to industry Likely knock-on effects for growth in technologicalThe EU decision-making process sector and internet economyTiming Regulatory Impact Assessment quotes DMA’s figures & examplesCurrent position Impact on behavioural advertisingThe DMA’s actions Creates unrealistic expectations for consumers – R2BF proposal is “unworkable”
Key lobbying messages • Data is essential for economic growthIntroductionNew rules andimpact on Direct • Transparent and responsible use ofMarketing data is a vital business practiceDMA viewThe EU decision-making process • The proposed Regulation is bad forTiming consumersCurrent positionThe DMA’s • Need a proportionate data regime thatactions recognises that not all data is the same
Lobbying activityIntroduction • Lobbying UK Government & European institutions asNew rules andimpact on Direct the proposal goes throughMarketingDMA view • DMA working with FEDMA & other alliances – forThe EU decision- collective lobbying of Council and Parliamentmaking processTiming • Leading UK Data Industry Group response to theCurrent position proposed legislation & participating in CBI lobbyingThe DMA’sactions • Research on consumer attitudes to privacy and on economic value of the dm industry.
Lobbying activity • Contact with key UK MEPsIntroduction • Promoting suggested amendments to Regulation –New rules andimpact on Direct to UK MEPs and via FEDMA to othersMarketingDMA view • Lobby UK political leaders to influence their MEPsThe EU decision- in EU Parliamentmaking processTiming • Continue to engage with key Commission, CouncilCurrent position and Parliament civil servants and advisersThe DMA’sactions • Providing DMA members with toolkit for lobbying MEPs
Lobbying activity FEDMA co-ordinating lobbying by DMAs in 27 Member StatesIntroductionNew rules andimpact on Direct Meetings in Brussels with key individuals inMarketing Council, Commission & Parliament, e.g. CouncilDMA view Working Group; key MEPs & advisers; party groupsThe EU decision-making process FEDMA position papers on priorities for industry +Timing draft amendments to textCurrent position Lobbying directly where there is no national DMAThe DMA’sactions Data Industry Platform & Industry Coalition on Data Protection - collective lobbying
EU Data Protection:What can you do to make a difference?
What does it mean for you?• The end of one to one marketing as we know it• Less targeted and more generic communication• £47 billion of lost sales• More admin costs for business• Reduced innovation
What could it mean for you?• Online marketing – Analytics impossible as no tracking of IP addresses – Profiling is very limited without the explicit consent of the consumer – Tailored online experiences will require explicit consent – Ads can no longer be targeted to individuals – Data can no longer be used to target future marketing activity – Debate over whether legacy data will have to comply with the new rules
What could it mean for you?• Data industry – Most current activities will become heavily restricted – Data will become impractical and expensive both to source and keep up-to-date – Legacy data might be required to comply with new regulation, prospect lists could be decimated – List broking severely restricted
What could it mean for you?• Direct mail – Move from opt-out to opt-in: explicit consent needed to send any message to any recipient, with the exception of existing customers – Existing databases may not be usable under regulation: could decimate prospect lists – Demographic information will have to be wiped
What could it mean for you?• Telemarketing – Move from opt-out to opt-in – No cold calling to prospective customers – No profiling or segmentation without individual consumers consent
What could it mean for you?• Email marketing – No tracking data allowed without explicit consent, making effectiveness extremely difficult and unreliable to measure – Profiling and segmentation will become difficult and patchy – Tailored content will be hard to target and harder still to measure
Write to your MEPs• Stand up for your business in 4½ easy steps: 1. Multiple MEPs represent your region, and each one has a say so contact them all 2. Template letters carry little weight: send a personal letter – Tell them who you are, where youre based, what your business does, how many people it employs and the approximate value of your business and its contribution to the local economy 3. State your business view: – how much your business relies on customers data and – what your prospects would be like if it was taken away 4. Ask them to fight for the fair interests of business 4½. If you can visit your MEP(s) in person.
Next steps• DMA will continue to lobby in Council of Ministers – UK-working with AA and all industry bodies – Working with Fedma and European Data Industry Platform on lobbying other EU countries• Members lobby EU Parliament – Lobby MEPs in your region – Lobby UK MEPs on key committees
QuestionsPlease put your questions to our speakers!#dmadata
Rising to the privacy challengeRichard Beaumont, Head of Service Development, Cookie Collective LLP#dmadata
Who We AreThe Cookie Collective is specialist provider of practical cookie law and onlineprivacy solutions for website owners.Governor Technology is a web development agency, specialising in .NETtechnology development, Umbraco CMS websites, full service emailmarketing, and Windows 8 app development
Do we need change?• Mistrust of business use of personal data is increasing.• 43% British consumers don’t trust businesses with their information online(2013 Truste Privacy Index)
AND…• 91% of consumers say they avoid doing business with companies they do not believe are protective of their online privacy
The Privacy Arms Race• The most popular add-on for Firefox is an ad-blocker.• 8% of desktop, and 20% of mobile FF users have DNT on.
How many brands canafford to ignore theexpressed preferences ofthat many customers?
Google?Facing a group action forbypassing privacy settingsin Apple’s Safari browser
The EU believes that clear,consistent rules and strongconsumer protections willboost both trust andgrowth.
Predictions:• Greater privacy protection is inevitable• Disruption to existing practices and business models is highly likely.• Digital marketing will be particularly impacted
3 Key Changes1. Practices will need to be more transparent2. Obtaining data will be more difficult3. There will be increased responsibility for curating data
TransparencyPrivacy policies are long andunreadable, often deliberatelyOnly 22% of US consumers trustprivacy policies as sources ofguidance.
Change: Easy to ReadPrivacy PoliciesLayered InformationStandardised Privacy Icons
Mozilla/Disconnect Icons• Work in progress• Released under creative commons
Obtaining Data• Reduction in amount of data collected is a key intended consequence of the regulation.• Especially ‘un-volunteered’ data.
Two practical responses• Increase the rate at which people will volunteer data• Obtain greatest value from data collected.
Increasing Opt-inExpect to see more and clearerexamples of explicit value exchangesLots of information sites alreadyrequire registration to access highvalue services
Increasing Opt-inRise of direct financial exchangeloyalty schemeswww.quidco.comwww.topcashback.co.uk
Legitimate InterestsGives greater freedom to first partiesLead to a rise in first party targetingtechnologiesChanges in balance of relationships,not user experience
Increasing Value: Big DataIs the reform then enemy of big data?Creates smaller data sets, fewerconnected data points
Increasing Value: Big DataLimiting factor is actually the amountbeing analysed, not collected.Total amount of data on the web hasdoubled in the last 2 years.Barely 1% of that is being analysed
Increasing Value: Big DataLimiting collection incentivises bettereconomic use of that which iscollected.Could easily lead to an increase inoverall value, even is volumedecreases.
Curating DataBig changes here are in the B2Cinterface:• Free subject access requests• Right of Data Portability• Right to be forgotten
Curating DataExpect new and updated softwareproducts and services to reduce costs:• Web interfaces for requests• Direct access and control
Curating DataRight to be forgotten particularlydifficult. Even within a singleorganisation.Will need new products to automatefinding and deletion of data acrossbusiness systems
A Cautionary Last NoteChange is inevitable in any marketsector.Sometimes it pays to fight it, but youalso need to know when to startadapting.
Future forward – A look aheadDave Coplin, Chief Envisaging Officer, MicrosoftPlease find these slides atwww.slideshare.net/SarahWright/future-forward-dma#dmadata
QuestionsPlease put you questions to our speakers!#dmadata
Closing comments from ChairDavid Reed, Editor, DataIQ#dmadata
What does data sharing mean toconsumers?Wednesday 27 February 2013Leading brands including Virgin Insight discuss how marketers can gaintheir customers trust and earn their data.Visit the reception desk for more informationSponsored by
LunchPlease join us for a bite to eat – DMA staff are on hand to answerany of your questions. #dmadata