mocoNews.net - Unhealthily Obsessed with Mobile Content

Current Story

Digital Rights Advocates Take Aim At Mobile Marketing; FTC Filings Seek Curbs On Gathering User Data

By David Kaplan - Tue 06 May 2008 02:32 PM PST

This could actually be read as a sign that mobile advertising market is starting to come into its own… two consumer advocacy groups, the Center for Digital Democracy and U.S. Public Interest Research Group, have filed preliminary complaints with the Federal Trade Commission asking regulators to actively curb the use of behavioral targeting by requiring users’ specific consent before their personal information and mobile web activity is recorded for ad profiling.

The joint filing by CDD and USPIRG is modeled on the two group’s Nov. 2006 FTC filing asking that officials investigate alleged privacy violations by online advertising companies. CDD executive director,Jeff Chester said the FTC “dropped the ball” when it elected to let the online ad industry police itself and that mobile-web advertising is still in a more “fluid period,” which could allow consumer groups to exercise more influence. He added that he expects to file a full petition with the FTC with a catalog of alleged violations within the next two weeks.

In particular, the groups are taking aim at technologies like Enpocket’s “Personalization Engine,” which claims to predict mobile web users’ likely purchase decisions based on the the sites they visit. The CDD and USPIRG also want the FTC to examine the use of text-message based marketing, especially in the case of teens and tweens. Release

Meanwhile, a U.S. Federal Trade Commission hearing on Tuesday has heard of the difficulty in controlling mobile spam, and the necessity of international cooperation reports Red Herring. The Florida AG explained that it “initially” targeted carriers because they get the lion’s share of the revenues from inappropriate shortcode uses. “But we have also looked at the aggregators, billing aggregators, and advertising networks,” he said. “But you need to deal with the people closest to the subscribers and the carriers are the ones that bill for this.” The affiliates could be “19-year-old kids in a garage in Paducah” said the AG, adding that “you need to sue people that your resources can best impact the problem”.

Posted in: Legal, Regulatory, Mobile Adv & Mktg

Related Research from Alacrastore.com
1 Response:
  • From Eric Holmen Tue 06 May 2008 07:23 PM

    In light of the complaints filed with the Federal Trade Commission on 6th May by the Center for Digital Democracy and the US Public Interest Research Group, we at SmartReply wish to express our support of both advocacy groups in their effort to safeguard Americans’ privacy rights in the realm of mobile marketing.  As a leading provider of mobile marketing services to many of the nation’s leading retailers and brands, we have unwaveringly advocated for respectful and unintrusive mobile communications. As mobile technology continues to evolve, it will be vital for companies and oversight entities like the FTC to work in conjunction, to preserve the privacy of ordinary citizens.

    We agree with Mr. Chester’s assertion that the FTC must take a proactive stance to stave off dubiously ethical practices, particularly as mobile marketing represents a highly personal method of reaching target audiences.  We acknowledge, however, that this personalized communication is the very aspect of the medium that makes it so effective from a marketing standpoint.  We might also point out that the goal of regulation should not be to squelch all marketing or advertising messaging, but rather to ensure that it is consistently welcome and invited, and that it provides value and service to consumers.

    As such, we support the current FTC opt-in requirement for mobile messaging, and would support any initiatives that build on that policy.  People should be required to opt-in to mobile programs, but we believe the opt-in process should remain simple (a yes text from a consumer) so as not to place undue burden on either the company or the consumer.  Since the technology will continue to mature and expand, it doesn’t make sense that a consumer would have to first opt-in to get a text message, then opt-in to share their personally identifiable information, then opt-in to share location-based data, then opt-in to use commerce features, etc.  Of equal if not greater importance, the ability to opt-out should also be swift, complete and painless.

    If the FTC applies its current standards – the opt-in requirements in particular - to emerging segments of the mobile market (including campaigns that capitalize on location awareness), we believe that mobile marketing will continue to be a welcome, effective and potentially rewarding avenue of communication between consumers and the companies that serve them.

    Eric Holmen, President
    SmartReply Inc, Irvine, CA

Post Your Comment

Mobile Options

» Mobile/BB App
» Mobile/Wap Site

Send a News Tip

About

mocoNews.net is a news site covering the business of mobile content.

Rafat Ali
Publisher & Co-Editor

Staci D. Kramer
Co-Editor

Tricia Duryee
Principal Correspondent

Dianne See Morrison
Contributing Writer

James Quintana Pearce
Contributing Writer

Robert Andrews
U.K. Editor

EconAds Conference - The Economics of Ad Deals. Tuesday, June 3rd, 2008. The New World Stages, NYC

New Media/Interactive Job Listings

Post Job
More Jobs

Generous Supporters