I’m not sure if you’ve heard, but several of our congressional representatives are investigating the top large marketing data companies on how they collect and store data, and the potential impact that this has on consumers.
I realize that I am biased . . . but whatttttt?????? Luckily, the Direct Marketing Association (DMA) has gotten involved in this probe and issued an extremely on-target letter to the lawmakers involved to point out the benefits of data-driven marketing for consumers and companies. From the DMA website:
“DMA is concerned that your letters appear to question legitimate commercial data practices that are essential to America’s job creation, economic growth, and global leadership, particularly with respect to the companies you have queried that collect and use data about consumers with whom they have a direct relationship. Quite simply, in the digital age, data-driven marketing has become the fuel on which America’s free market engine runs. From global brands to start-ups, marketing helps companies to find customers, grow, and create jobs. Put another way, unnecessary restrictions on marketing could undermine economic and job growth.”
This is serious stuff! If lawmakers get in the way of the use of direct marketing data, both businesses and consumers would be impacted. I do understand that consumer data (actually all marketing data) should be in a secure environment and handled responsibly. And I think most of the companies that compile data do so in a responsible and cautious fashion.
If the fear is that these large consumer databases are simply marketing “look up” services, then that fear is unfounded. I don’t know of any consumer marketing company that would allow anyone to look up information on a specific consumer for their own purposes. Additionally, with the current data laws in place — the FCRA (protects credit data), Gramm-Leach-Bliley Act (protects consumer data) and HIPPA (protects healthcare data) — we have enough regulation in the marketing data industry.
As stewards of this data, we do need to be careful . . . and those who are not should not be able to compile data. But I certainly don’t believe that marketing data needs to be legislated any more than it already is. Protecting consumers I am in favor of. Hurting business’ ability to communicate with customers and prospects in a meaningful way is a bad outcome and I am adamantly opposed to legislation that allows this to happen.
Let’s face it . . . in our healing economy, businesses need to have the ability to market to people to sell products and services. That benefits all of us in the form of healthy cities and states, job creation and satisfied consumers who receive offers that are relevant to them. I applaud the DMA for taking a leadership role in combating any new legislation that negatively impacts businesses.
