PRIVACY OF PERSONAL INFORMATION ACT

1
PRIVACY OF PERSONAL INFORMATION ACT

• Changing the Marketing Landscape

2

• The Federal Personal Information Protection and
  Electronic Documents Act came into force in
  January, 2001 it applies to federally regulated
  companies
• By 2004, the Act will extend to all commercial
  activities within the provinces unless a province
  passes its own similar legislation
• Ontario hopes to pass the Privacy of Personal
  Information Act - this would expand to include
  activities and organizations that are not covered
  in the federal legislation

Brief Overview
3
Primary purpose of Act
To protect the fundamental rights of consumers
While few would argue against this purpose, those
in the business of communicating with consumers
for business purposes find themselves being
challenged to revamp their methods or risk
legal action..
Purpose
4

• Chief elements of the Act
• An organization must obtain an individuals
  consent for the
• collection, use or disclosure of that
  individuals personal
• information
• Organizations may only use information for the
  purpose for which it was collected - once the
  purpose of information-gathering has been
  fulfilled, information is to be destroyed or made
  anonymous
• Every company must have someone that is entirely
  accountable for privacy this person must be
  fully aware of the criteria for information
  deemed private, as well as who has access to this
  information and how they use it.
• Information cant be given to third parties
  without additional consent

Whats included in the Act?
5
Under the new legislation, an organization
shall not use or disclose personal information
to market goods or services or for market
research unless the individual consents.
This represents an end to unsolicited direct
mail, e-mail marketing that is not based on
permission and telemarketing
How will this affect the marketing industry?
6
Understandably, the majority of Canadian
marketers are up in arms about lost marketing
opportunities

• The Canadian Marketing Association has been
  actively speaking
• against the new legislation, viewing it to be
  excessively restrictive
• They (the province) are going to kill several
  tens of thousands of jobs in this province, and
  billions of dollars of commerce if they proceed
  down this path.
• - CMA President John Gustavson
• With such restrictive legislation, there is
  bound to be an increase in
• public action against privacy violations.
•  
• The biggest single threat to a marketer is a
  public
• pronouncement. - Gustavson

The Effect Traditional Marketers
7
Why Permission Marketing will continue to
flourish

• The new legislation makes consent or permission
  the very essence of
• their business MANDATORY for all marketers
• It legitimizes permission-based initiatives on
  the grounds of
• consent, thus dispelling perceptions of e-mail
  marketing as intrusive
• Demand will increase for companies with
  expertise in permission-based programs because
  opt-out programs will no longer be legal
• The greatest strength of permission-based
  programs is that their
• success relies on creating relationships between
  companies and customers.

At a time when consumers are growing increasingly
protective of their privacy, companies that
strive to encourage ongoing dialogue and
feedback will guarantee a long term position in
the marketing industry.
The Effect Permission Marketers
8
More information is communicated by email than by
all other forms of communications combined
Tools that develop a relationship with the
customer based on permission greatly increase
response rates and help your business to develop
effective strategies for the future based on
rich customer data
US consumers prefer permission e-mail 400 more
than other methods of contact - Doubleclick
Benefits of Using Permission E-mail
9
Did you know?

• Two-thirds of Internet non-users would be more
  likely
• to use the Net if the privacy of their personal
  information
• and communications was protected.
• - Business Week/Harris Poll
• According to survey of Direct Marketing
  Association members,
• 68 have a CEO, president or chief privacy
  official with primary
• responsibility for the companys privacy issues
  and policies
• The major concern 75 of US consumers have with
  providing
• Their personal information to a company is that
  the company will
• Supply a third party with the information without
  permission
• - Harris Interactive

Some Privacy Food for Thought