[Ecommerce] Opt-in vs. Opt-out for marketing use of personal information

[Philippa Lawson]

The draft Ontario data protection legislation has ignited a storm of 
controversy over its proposed requirement that marketers obtain consumer 
consent via an opt-in process.  The Canadian controversy mirrors the debate 
currently raging in the USA over opt-in vs. opt-out consent.  In that 
context, I found the following excerpt from Seth Godin's book "Permission 
Marketing" (1999, Simon & Schuster) interesting.  Seth Godin is (or at 
least was at the time of publication) VP, Direct Marketing, for Yahoo!, and 
is described as an "Internet Marketing Pioneer".

"Yoyodyne [Godin's internet marketing company] has an opt-in list in which 
we offer consumers a chance to tell us their interests so we can rent their 
names to marketers who choose to reach them by e-mail.  The consumers get 
two benefits: 1) they get more entries to win a prize; and 2) they receive 
information about things that match their profile.  About 38 percent of the 
people we present this offer to do, in fact, opt in.  But this is very 
different from an opt-out campaign, in which consumer data is rented and 
used until the victim takes an action and opts out.  Opt-out is a sham.  It 
takes power away from the consumer and provides a flimsy opportunity for 
the marketer." (p.229)

I find this interesting on a number of counts:
1.      His 38% opt-in response rate - much higher than what the industry 
generally claims it can get via opt-in.
2.      His use of the term "victim" for the consumer whose data is 
collected and used on the basis of opt-out consent (remember, he is a 
marketer!)
3.      His unequivocal rejection of opt-out approaches to consent.


Philippa Lawson, Counsel
Public Interest Advocacy Centre
1204 - 1 Nicholas St.
Ottawa, Ontario, Canada  K1N 7B7
tel: 613-562-4002 x.24
fax: 613-562-0007
email: plawson@piac.ca
PIAC website:  http://www.piac.ca

For PIAC's comments on the proposed Ontario privacy legislation, and other 
publications regarding privacy, see http://www.piac.ca