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Do Not Track Legislation and Zip Code as Personal Information

Do Not Track Legislation and Zip Code as Personal Information. Sheila Colclasure, Public Policy & Privacy Compliance Ofcr Jordan Abbott, Compliance Legal Leader. Acxiom Background. Founded in 1969 Public in 1983: Nasdaq (ACXM) Headquarters: Little Rock, Arkansas

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Do Not Track Legislation and Zip Code as Personal Information

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  1. Do Not Track Legislation and Zip Code as Personal Information Sheila Colclasure, Public Policy & Privacy Compliance Ofcr Jordan Abbott, Compliance Legal Leader

  2. Acxiom Background • Founded in 1969 • Public in 1983: Nasdaq (ACXM) • Headquarters: Little Rock, Arkansas • More than 7,300 associates worldwide • FY 2010 revenue: $1+ billion • Over 70% of total revenue is • from clients under long-term contracts

  3. WHO IS AFFECTED BY DO NOT TRACK? Everybody Start Ups SOHO Small Tier Mid Tier Fortune 500 Retail Financial Svc Gaming Entertainment Travel Law Firms Health Care Television Insurance Technology Telco Manufacturing Universities Consumer Goods Automotive Politician Security Collections Government MORE!

  4. Marketing Acquisition Up-sell /Cross-sell Retention Risk Fraud Authentication Verification Identity Solving in the Digital World

  5. Economics • $$ 300 Billion Dollar Internet Ecosystem • $$ 283 Billion US Marketing Spend • $$ 26 Billion spend on Online Marketing • 3 million people hold Internet Advertising jobs • Interest Based Advertising = 457% return $$ 600 Million in Internet Advertising produces $$ 39 Billion in sales/economic activity

  6. Do not Track • Regulation of Behavioral Advertising • OBA knows no geographical boundaries • Hyped up media coverage • Anecdotal Harms • State Legislation • Effects on businesses and state economies

  7. DO NOT TRACK… HISTORY • Federal Trade Commission has long been interested • Consumer Advocates engaged • Several Public Policy Groups engaged • Technology challenges • Consistency across mediums/channels

  8. DO NOT TRACK…FUTURE • Federal Trade Commission • Industry Response • Global Pressures • Technology innovations • Evolving consumer acceptance • State Role

  9. Collecting even “private” data, little governance, little enforcement…lots of secondary commercialization • Apps SURVEILLANCE SOCIETY... • Device Fingerprint You are known and treated in place and time via the cloud • Placefulness Captures device data points, formulates “fingerprint,” spoofable, not “categorized” as pii…yet used that way • The Internet of Things… Multiply in order of magnitude • Precise GeoLocation Multiplied by time; checking in • eHealth & HITECH • HTML5 Relies on the Cloud, devices monitor, report back Offers even more tracking & collection, utilizes the Cloud • Sniffers and Listeners Sits on networks, watches traffic, sniffs out brand and…”listens” • Meters Rides the pipes, capturing and closing the loop on every data point including digital dust and digital exhaust of digital device

  10. Ads Preferences ICON Project: aboutads.info Meaningful Transparency • Reasonableness Test • Notice suitable for the device? effective for the media? • Complete disclosure? Before collection? send out a probe? Begin to Listen? Secondary use? Third party transfers? Passively collected info? • Any “surprises”? • Measuring for harm? In Privacy Mode Choice • Are the choices easy to understand & action? • Do choices cover all information practices?

  11. “In matters of principle, stand like a rock; in matters of taste, swim with the current.” Thomas Jefferson

  12. PINEDA V. WILLIAMS-SONOMA STORES • Song-Beverly Credit Card Act • Cal Civ. Code §1747.08 • Generally prohibits requesting or collecting “personal information” during a credit transaction • Intended to prevent marketing databases • Linens & Things • Party City • February, 2011, California Supreme Court held that zip codes are personal information

  13. “FALLOUT” FROM WILLIAMS-SONOMA Since February, almost 200 class action lawsuits have been filed against retailers in California alleging violation of Song-Beverly Lawsuits across the country alleging similar claims • New Jersey • Massachusetts Multiplier = Thousands of Transactions x statutory damages of up to $1,000

  14. “FALLOUT” FROM WILLIAMS-SONOMA State Legislation to mirror Song-Beverly At least 15 states have a Song-Beverly like statute Texas - House Bill 3011 Louisiana - House Bill 128

  15. THE FUTURE OF RETAILING Near Term • Uncertainty • Things that were “universally” considered to be okay are not • Possibility of inconsistent judgments • Things that are innovative may not be okay Long Term • Inefficiency • Increase in unfocused marketing • Abandonment of worthwhile investments • Potential effect on state revenue

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