Direct Marketing Association Praises Department of Commerce Privacy Report

Washington, D.C., December 16, 2010 — The Direct Marketing Association (DMA) today praised the much-anticipated privacy report released by the Department of Commerce (DOC). The report, titled “Commercial Data Privacy and Innovation in the Internet Economy: A Dynamic Policy Framework” supports ‘Fair Information Practice Principles’ as the underlying framework for privacy policy in the US, and encourages the development of “voluntary, enforceable privacy codes of conduct” to foster trustworthy privacy practices that both address risks and preserve evolving business models.

“We are very pleased to see strong support for industry self-regulation in the report,” said Linda Woolley, DMA’s executive vice president of government affairs. “We agree that the best way to achieve effective privacy protection for consumers is through innovation and flexible industry-driven efforts, which is why we have spent the past year developing just such a program.”

On October 4, DMA has and its association partners launched a comprehensive Self-Regulatory Program for Online Behavioral Advertising. A key feature of that program is the Advertising Option Icon, a consumer choice mechanism that lets consumers know that data is being collected and used to serve interest-based ads, and allows consumers to opt-out if they choose. Information about the program can be found at www.AboutAds.info.

The report also calls for the creation of a formal Privacy Policy Coordinator for the Administration within the Commerce Department’s National Telecommunications and Information Administration. This office will serve as a convener of all stakeholders to further privacy policy in the US and abroad. The DOC staff has indicated that they believe that their counterparts in the European Union (EU) are open to a discussion and constructive framework that would support effective self-regulation, particularly in the online environment. Woolley noted that, “DMA looks forward to continued partnership with DOC on domestic privacy issues and strongly supports DOC efforts to more formally reengage in global privacy debates.”

Other highlights of the report include calls for a federal commercial data security breach notification law, which DMA supports, as well as an update of the federal Electronic Communication Privacy Act to the Internet and current communications technologies.

To learn more about DMA’s advocacy in the area of digital privacy and self-regulation, please visit www.DMAAction.org, the website of DMA’s Government Affairs team.

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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 companies from dozens of vertical industries in the US and 48 other nations, including nearly half of the Fortune 100 companies, as well as nonprofit organizations.

In 2009, marketers – commercial and nonprofit – spent $149.3 billion on direct marketing, which accounted for 54.3% of all ad expenditures in the United States. Measured against total US sales, these advertising expenditures generated approximately $1.783 trillion in incremental sales. In 2009, direct marketing accounted for 8.3% of total US gross domestic product. Also in 2009, there were 1.4 million direct marketing employees in the US. Their collective sales efforts directly supported 8.4 million other jobs, accounting for a total of 9.9 million US jobs.

The Power of Direct: Relevance. Responsibility. Results.

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