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

[Susan Grant]

He must not be with them anymore.  Didn't Yahoo just announce a change to
its privacy policy -- and not for the better?
Susan Grant

-----Original Message-----
From: ecommerce-admin@venice.essential.org
[mailto:ecommerce-admin@venice.essential.org]On Behalf Of Philippa
Lawson
Sent: Thursday, April 18, 2002 1:55 PM
To: npc-l@lists.ccs.carleton.ca; Ecommerce@venice.essential.org;
amaltby@the-cma.org; humest@est.gov.on.ca
Subject: [Ecommerce] Opt-in vs. Opt-out for marketing use of personal
information


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


_______________________________________________
Ecommerce mailing list
Ecommerce@lists.essential.org
http://lists.essential.org/mailman/listinfo/ecommerce