Is More Data Always Better? The Legal Risks of Data Collection, Storage and Use in Marketing<br />Jordan Abbott<br />Acxio...
WHO, WHAT, WHY, and HOW<br /><ul><li>Who is collecting the data
What are they collecting
Why are they collecting it
What principles (if any), govern the collection of data
Advocates’ attitudes
Court cases
How to minimize your risk</li></li></ul><li>
“Over-Collection” of Data<br /><ul><li>The Good</li></ul>- The Bad<br /><ul><li>The Ugly</li></li></ul><li>Datais Gold<br />
Who collects and uses data for marketing?<br />Everybody.<br />Start Ups<br />SOHO<br />Fortune 500<br />Mid Tier<br />Sma...
Data Elements “in Play” <br />Offline and online<br /><ul><li>Name
Name variations
Addresses
Address Histories
Associates
Public Records
DMV
Criminal & RSO
Voter
Real Property
Licenses
Bankruptcy, Tax Lien, Judgment
Deceased</li></ul>MORE<br /><ul><li>Purchase data
IP Addresses
Peer to Peer Transfers
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Is More Data Always Better The Legal Risks of Data Collection, Storage and Use in Marketing

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  • Is More Data Always Better The Legal Risks of Data Collection, Storage and Use in Marketing

    1. 1.
    2. 2. Is More Data Always Better? The Legal Risks of Data Collection, Storage and Use in Marketing<br />Jordan Abbott<br />Acxiom Compliance Counsel <br />
    3. 3. WHO, WHAT, WHY, and HOW<br /><ul><li>Who is collecting the data
    4. 4. What are they collecting
    5. 5. Why are they collecting it
    6. 6. What principles (if any), govern the collection of data
    7. 7. Advocates’ attitudes
    8. 8. Court cases
    9. 9. How to minimize your risk</li></li></ul><li>
    10. 10. “Over-Collection” of Data<br /><ul><li>The Good</li></ul>- The Bad<br /><ul><li>The Ugly</li></li></ul><li>Datais Gold<br />
    11. 11. Who collects and uses data for marketing?<br />Everybody.<br />Start Ups<br />SOHO<br />Fortune 500<br />Mid Tier<br />Small Tier<br />Entertainment<br />Gaming<br />Financial Services<br />Retail<br />Travel <br />Technology<br />Insurance<br />Television<br />Health Care<br />Law Firms<br />Consumer Goods<br />Universities<br />Telco<br />Manufacturing<br />Automotive<br />Politicians <br />Security<br />Collections<br />Government<br />MORE!<br />
    12. 12. Data Elements “in Play” <br />Offline and online<br /><ul><li>Name
    13. 13. Name variations
    14. 14. Addresses
    15. 15. Address Histories
    16. 16. Associates
    17. 17. Public Records
    18. 18. DMV
    19. 19. Criminal & RSO
    20. 20. Voter
    21. 21. Real Property
    22. 22. Licenses
    23. 23. Bankruptcy, Tax Lien, Judgment
    24. 24. Deceased</li></ul>MORE<br /><ul><li>Purchase data
    25. 25. IP Addresses
    26. 26. Peer to Peer Transfers
    27. 27. Social Networks
    28. 28. Geo-Location
    29. 29. Click Stream
    30. 30. Browsing Behavior
    31. 31. MORE ?????</li></li></ul><li>Data Elements “in Play” <br />On and Offline – Anonymous and PII<br /><ul><li>Contact Data
    32. 32. Name
    33. 33. Address
    34. 34. Email address
    35. 35. Phone
    36. 36. Cell phone
    37. 37. Shopping behavior
    38. 38. Viewing Behavior (Digital TV)
    39. 39. Geo-Location (Mobile Device)
    40. 40. Place and Time
    41. 41. Browsing behavior
    42. 42. Click stream
    43. 43. Purchase behavior
    44. 44. Demographics
    45. 45. Sociographics
    46. 46. Life Stage
    47. 47. Analytics and Segmentation
    48. 48. Cookies
    49. 49. Email behavior – click & open
    50. 50. Social Network Data
    51. 51. # of Networks
    52. 52. # of Friends
    53. 53. Fan Pages
    54. 54. Blog Data
    55. 55. Preference data
    56. 56. Response data
    57. 57. MORE</li></li></ul><li>WHY….? <br />….because businesses want to know their customer <br />and customers want to be delighted, amused and protected<br />
    58. 58. Marketing<br />Acquisition<br />Up-sell /Cross-sell<br />Retention<br />Risk<br />Verification<br />Authentication<br />Fraud Prevention<br />Identity<br />Solving Business issues – Creating Consumer Value <br />
    59. 59. Customers’ Lives Are Constantly Changing<br />Every hour of every day<br />5,769 people changed jobs<br />2,748 people moved<br />509 people were married<br />244 people got divorced<br />186 people declared bankruptcy<br />
    60. 60. Channels Are Multiplying Rapidly<br />New Types of Data <br />Exploding Volume<br />Increasing Velocity<br />
    61. 61. DMA’s Guidelines for ethical Business practices<br />Article #32 – Personal Data<br />“Marketers should be sensitive to the issue of consumer privacy and should only collect, combine, rent, sell, exchange, or use marketing data. Marketing data should only be used for marketing purposes.”<br />
    62. 62. Collection Limitation Principle<br />“There should be limits to the collection of personal data and any such data should be obtained by lawful and fair means and, where appropriate, with the knowledge or consent of the data subject”<br />
    63. 63. Identifying Purposes<br />Identify the purpose for which the personal information is collected at, or before, the time of collection<br /><ul><li>Allows the organization to determine the information it needs to collect to fulfill those purposes</li></ul>When collecting information, there is a tendency to collect more than what is needed “just in case” you need it at a later date<br />Unless you have clearly indicated how that information will be used, you should not collect it<br />Scrutinize the need for each piece of information you collect.<br />If you don’t need it, don’t collect it. <br />
    64. 64. Over-Arching Concern… Consumer Attitudes<br /><ul><li>Privacy is an emotionally charged issue
    65. 65. Being watched, monitored, taken advantage of
    66. 66. Consumers feel like they are losing control
    67. 67. Consumers don’t understand our information based economy
    68. 68. Information technology is part of our economic infrastructure
    69. 69. Benefits are not fully understood by consumers or law makers
    70. 70. Technology used often “unappreciated” by consumers</li></li></ul><li>Policymakers’ Attitudes<br />“When personal data collected by one organization for a stated purpose is used and traded by another organization for a completely unrelated purpose, individual rights could be seriously threatened.”<br />102 Cong.Rec. 36893-4 (1974), quoted in Ash v. United States, 608 F.2d 178, 180(5th Cir. 1980).<br />
    71. 71. The News! <br />“…vast data gathering…used to discriminate in the services that companies offer customers or government agencies offer citizens.”<br />“Eleven of the nation's largest website operators defended their privacy practices to lawmakers, saying it is impossible for them to monitor all the tracking technologies their sites install on visitors' computers.”<br />“…growing concern on Capitol Hill about the expanding business of tracking consumer behavior online.”<br /> “’the wall has been breached’ between what users share under their real identity online and what information they provide under the cover of anonymity.” <br />“…the analytical skill of data handlers…is transforming the Internet into a place where people are becoming anonymous in name only.” <br />“Mr. Markey said he wasn't satisfied that "consumers are able to effectively shield their personal Internet habits and private information from the prying eyes of online data gatherers.”<br />
    72. 72. More News! <br />“As WiFi Data Collection Revealed, New Investigation Begins”<br />“…consumers who surf the Internet unintentionally surrender all kinds of personal information to marketing firms that use invisible tracking technology to monitor online activity”<br />“…Stalkers Exploit Cell phone GPS “<br />"Consumers still get the short end of the stick when industry shows that it is incapable, or unwilling, to better articulate what information they are collecting from consumers and why we should trust industry to protect consumers' personal information.”<br />"It is technically impossible for Yahoo! to be aware of all software or files that may be installed on a user's computer when they visit our site," Anne Toth, Yahoo's vice president of global policy and head of privacy, wrote to U.S. Reps. Edward Markey (D-Mass.) and Joe Barton (R-Texas).”<br />
    73. 73. Google Street view<br />- Premise is awesome and beneficial<br />- Collected personal information from unsecure WiFi networks<br />- “Probably the single greatest breach in the history of privacy”<br />- Numerous court cases and enforcement actions around the world<br />
    74. 74. iPhone location tracking <br />- Hidden file that stores latitude, longitude, and timestamps<br />- Post-hoc explanation did not do much to quell controversy<br />- Lawsuits, Congressional inquiries<br />
    75. 75. comScore ALLEGATIONs<br /><ul><li>August 2011
    76. 76. Online tracking
    77. 77. Class action lawsuit
    78. 78. Alleged to have secretly collected SSNs, credit card #s, and passwords</li></li></ul><li>To do’s<br /><ul><li>Have an effective Data Governance Plan</li></ul> - Assess needs and purposes<br /> - The more you collect, the greater your fiduciary duty <br /> - Don’t keep what you don’t need<br /> -Regularly monitor compliance<br />-Have an effective Security Incident Response Plan<br /> -Question of “when,” not “if”<br /> - Assess your technical, physical and administrative vulnerabilities<br /> - Address them<br /> -Understand what your obligations are in the event of a breach<br /> - Have it in writing and keep it up to date <br />
    79. 79. Pending Legislation<br />HR 611 §303<br />S. 799 §301<br />
    80. 80. Contact Info<br />Jordan Abbott<br />(501) 342-0356<br />jordan.abbott@acxiom.com<br />

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