DMA WELCOMES FTC STATEMENT THAT SELF REGULATION CONTINUES TO BE BEST APPROACH TO BEHAVIORAL ADVERTISING

Washington, DC, July 14, 2008 — Direct Marketing Association (DMA) Senior Vice President of Government Affairs Jerry Cerasale praised the Federal Trade Commission (FTC) for its statement in testimony before the US Senate Committee on Commerce, Science and Transportation that privacy concerns raised by behavioral advertising can be addressed by industry self regulation.

“DMA has long been a leader in self-regulatory efforts in the privacy and online space; indeed, the very cornerstone of DMA’s efforts to secure consumer trust in multichannel direct marketing is our unwavering commitment to meaningful self-regulation,” said Cerasale.  “We commend the FTC for balancing the need to notify consumers when their personal information is compromised with that of not over-burdening companies and consumers with notification requirements.”

Since April, DMA has been in the process of evaluating its Guidelines for Ethical Business Practice to insure that they are applicable to behavioral advertising.  To that end, DMA intends to have draft revisions and interpretations for consideration and comment by the association’s membership that show how existing DMA guidelines apply in the behavioral advertising arena.  The revisions will include a means of increased consumer notice, transparency, and choice regarding certain uses of data.

“Because behavioral advertising practices are complex and constantly evolving, policies in this area must be flexible, not one-size-fits-all,” added Cerasale.  “Recognizing that advertising fuels the consumer’s free Internet experience, and that behavioral advertising is a means to tailor information that is highly relevant to a consumer’s interests, DMA looks forward to continuing our work with the FTC, as well as other leading associations, to ensure that all online sectors are covered by effective self-regulation.”

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About Direct Marketing Association (DMA)

The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques.  DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process.  Founded in 1917, DMA today represents nearly 3,600 companies from dozens of vertical industries in the US and 50 other nations, including a majority of the Fortune 100 companies, as well as nonprofit organizations.

In 2007, marketers — commercial and nonprofit — spent $173.2 billion on direct marketing in the United States.  Measured against total US sales, these advertising expenditures generated approximately $2.025 trillion in incremental sales.  In 2007, direct marketing accounted for 10.2 percent of total US gross domestic product.  Also in 2007, there were 1.6 million direct marketing employees in the US.  Their collective sales efforts directly supported nearly 9.0 million other jobs, accounting for a total of 10.6 million US jobs.

The Power of Direct:  Relevance.  Responsibility.  Results.