What We're Reading 4/3/2009

What We're Reading

Yahoo! News: Feds sue Dish Network over do not call complaints

The nation's second-largest satellite TV provider — Dish Network — is being sued by the government for alleged violations of the national Do Not Call Registry.

 

NY Times: 8 Hours a Day Spent on Screens, Study Finds

IN a world with grocery store television screens, digitally delivered movie libraries and cellphone video clips, the average American is exposed to 61 minutes of TV ads and promotions a day.

 

Adage: Georgia-Pacific Sues P&G for False Advertising by Bounty

Claims that New Paper Towels are Thicker are False, Says Marketer

Brawny paper-towel marketer Georgia-Pacific Corp. is suing Procter & Gamble Co. for falsely advertising "25% thicker quilts" on its Bounty towels.

 

Reuters: EU threatens action to defend Web users' privacy

Some Internet companies are abusing consumers' personal data and this cannot be allowed to continue, a top European Union official will warn the industry on Tuesday.

 

Mediaweek: SAG, AFTRA Reach Commercials Contract

SAG and the American Federation of Television and Radio Artists said early Wednesday that they have reached a tentative new three-year commercials contract.

 

Reuters: House votes to grant FDA authority over tobacco

A measure giving the Food and Drug Administration power to regulate the manufacturing and marketing of cigarettes cleared the U.S. House of Representatives on Thursday.

Putting Consent To Telephone Contact in the Fine Print of Sweepstakes Rule Results in Fine

Florida-based travel promoter All in One Vacation Club, and its principals, agreed to pay civil penalties to the FTC of $275,000 for allegedly violating the Do-Not-Call list and other Telemarketing Sales Rule (TSR) provisions. The company used a direct mail sweepstakes entry to entice consumers to obtain a chance to win a vacation. The official rules purported to constitute consent by the entrant to be removed from any no-call registry for the specific purpose of allowing the sponsor to contact the entrant for marketing purposes. All in One took the position that the fine print of the official rules constituted a “written agreement” for purposes of compliance with the TSR, but the Commission disagreed. The FTC stated that any such written agreement must be “clear and conspicuous,” and must include the customer’s signature demonstrating the consumer’s assent. Stuffing the consent provision in the official rules of a sweepstakes wasn’t going to cut it.

Why this matters: This is not the first time a regulator has expressed concern about hiding in the official rules of a sweepstakes, language that would purport to give the sponsor the right to override the consumer’s decision to be placed on the Do-Not-Call list. Back in 2005, then New York Attorney General Eliot Spitzer challenged A&P grocery stores and Kitchen Magic, Inc. for virtually the same marketing practice. Promoters put all sorts of goodies in their official rules. Most of the time, these terms are construed as valid provisions in a contract between the consumer and the sponsor. But, when you seek to undermine a consumer’s statutory or regulatory right by virtue of the consumer’s entry into a promotional offer, watch out. Not only might the provision be unenforceable, but it could also be a violation of federal or state law. (See also Michigan’s Consumer Protection Act, §445.903(t).)

Direct Marketing Group Goes Green

The Direct Marketing Association is stepping up efforts to help its members move toward greener marketing practices. The DMA has introduced a “Green Marketing” program, which allows its professionals to earn a certificate in eco-responsible marketing. In addition, the DMA has developed an environmental resource center on its website.

The DMA’s Environmentally Responsible Marketing (ERM) program comprises an 11 course curriculum, which starts with a Dec. 1 online briefing. Courses will be held approximately every month. Topics include:

  • Building a long-term sustainable environmental policy or program
  • Understanding product and process life cycles
  • Green list & data management strategies
  • Sustainable design & production
  • Paper sourcing, certification, & labeling
  • Understanding & calculating the carbon footprint of a marketing campaign
  • International trends in green marketing

The DMA notes in its announcement concerning the program that a key goal to the program is to better meet customer expectations, in an attempt to stave off calls for do-not-mail legislation modeled after the federal do-not-call registry.

“Today, marketing strategies need to incorporate responsible environmental stewardship,” said Meta Brophy, who chairs DMA’s Committee on Environment and Social Responsibility, and serves as the director of publishing operations at Consumers Union. She said the DMA’s ERM program is believed to be “the first of its kind in the world of advertising and marketing.”

The faculty for the courses will be drawn from marketing and other professionals from a diverse group of companies and organizations, the DMA said.

In addition to its educational program, the DMA has established an Environmental Resource Center. The center includes a “Green 15 Toolkit,” which contains information and resources to help members understand and comply with the DMA’s Environmental Resolution, passed in May 2007. The latter calls upon members worldwide to implement and benchmark a set of 15 eco-friendly practices.

Why This Matters:  Consumers increasingly are seeking greener solutions to the volume of hardcopy marketing material they receive. The direct marketing industry is under pressure to better target potential customers or face the threat of legislation that limits the amount of direct mail they are allowed to send.