Opt Out & Opt In Email Business

The biggest discrepancy between European Union and United States privacy protection practices is the differences in opt-in/opt-out regulation of data collection. Addressing the issue as it relates to commerce is important. While federal anti-spam legislation and new state policies in the US have increased consumer and customer options, the question remains whether it would be better to mirror EU policies.

While privacy regulation requires that business provide "reasonable" ways for customers and consumers to opt-out, the GLB Act (also known as the Financial Modernization Act of 1999) still provides for a number of exceptions for financial institutions. They may share data with outside companies that provide them with essential services, such as data processing or servicing accounts (including marketing). They are also obliged to share information when legally required to do so, as in the case of a subpoena or other binding legal document and if an employee has evidence of illegal activity.

According to the EU, in order for a customer to receive a message that may contain marketing content, they must first express consent, and thus only opt-in email is permissible. In addition, any email communication containing marketing content must contain an opportunity to opt-out.

 

Recently, US anti-spam legislation has adopted a policy similar to that of the EU, where the recipient of an email containing marketing or advertising content must opt-in, having expressed consent and/or interest to receive information on a particular subject. Further, the law requires that all email lists provide, in the email, a clear manner with which one can opt-out or unsubscribe from a service. Those who send the email are legally responsible for processing all requests in an efficient manner within 10 business days.

While there is no official regulation regarding marketing solicitations in the mail, a number of states have begun to address the issue. With credit reporting agencies providing reports with "above the line" information (including an individual's home address) to potential creditors, mail boxes are littered with offers for increased credit, loans and new credit cards. California, Texas, Vermont and Louisiana have enacted laws that allow individuals to "freeze" their credit report, preventing credit reporting agencies from sharing or selling the information without the individual's consent, blocking new solicitations.

 

Frozen reports may be unlocked with a PIN code at the individual's discretion at no cost. Further, you can opt-out of unwanted mail solicitation by contacting the Direct Marketing Association Mail Preference Service. However, you must be clear that you wish to opt-out permanently, otherwise the opt-out expires after two years.

While critics of current FTC regulation are calling on Congress to make explicit opt-in requirements like those of the EU, many believe such a move would cause irrevocable damage to an already fragile economy.

 

Opt-out policies allow businesses to deliver target market campaigns and offers to customers within a specific, interested demographic that is more likely to act. Were opt-in email required, consumers and customers alike would be unaware of special offers and businesses would not be able to offer special deals due to the increased advertising cost of trying to reach these consumers and customers in the first place.