Case Study

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Case Study - Demonstrating Compliance with The DMA's Advance Consent Guidelines

The Committee on Ethical Business Practice heard a case brought to its attention by a consumer who noticed additional charges on a utility bill for a phone enhancement service she had not signed up for. The bill disclosed the existence of the service, along with a detailed description and instructions as to how to opt out of its continued receipt. Despite such disclosures, the Committee viewed this negative option marketing as problematic and informed the company that customers should clearly provide their consent in advance of being signed up for an additional service. The DMA's new Advance Consent Guidelines were provided to the company.

In response, the company explained that although it believed its marketing plan fully disclosed all necessary information to its customers, it decided to modify the plan. Part of the reason for this decision was the receipt of other consumer complaints about the same issue. The Committee viewed this response as positive and asked for additional information to detail how the plan was modified. The Committee viewed the compliance materials as clear, and believed consumers would understand their obligations in advance of billing for the service; therefore, the case was closed.

What Happens if a Company Does Not Cooperate with the Committee?

By far, the majority of companies, DMA members and non-members alike, cooperate with the Committee when contacted. They realize that the Committee is furthering the Association's mission of increasing consumer confidence in direct marketing by enforcing the self-regulatory ethics guidelines. DMA members, of course, are obligated to cooperate and to demonstrate compliance with the ethics guidelines. In the rare case of a member not responding to the Committee, or not rectifying what the Committee views as a violation of the ethics guidelines, the case is referred to the Board of Directors for action that could affect the company's membership status.

See www.the-dma.org/guidelines/advanceconsent.shtml for just the Advance Consent Guidelines plus Do the Right Thing staff commentary and questions.