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9/30/2011




  Is More Data Always
 Better? The Legal Risks
   of Data Collection,
   Storage and Use in
        Marketing

              Jordan Abbott
        Acxiom Compliance Counsel




WHO, WHAT, WHY, and HOW?

  • Who is collecting the data?
  • What are they collecting?
  • Why are they collecting it?
  • What principles (if any),
    govern the collection of data?
  • Advocates’ attitudes
  • Court cases
  • What to do to minimize your
    risk.




                                            1
9/30/2011




“Over-Collection” of Data


  - The Good
  - The Bad
  - The Ugly




DATA IS GOLD




                                   2
9/30/2011




Who Collects and uses data for
        “marketing”?
    Everybody…
                                                                         Fortune
Start Ups             SOHO           Small Tier        Mid Tier
                                                                           500

                     Financial
  Retail                             Gaming          Entertainment        Travel
                        Svc


Insurance          Technology       Law Firms        Health Care         Television

Consumer
 Goods             Automotive          Telco         Manufacturing      Universities

Politicians
                     Security        Collections      Government
                                                                         MORE!




Data Elements “in Play”
       On and Offline
                                                   – Marketing data? 
       –    Name 
       –    Name variations                        – Purchase data? 
       –    Addresses                              – IP Addresses? 
       –    Address Histories 
                                                   – Peer to Peer Transfers? 
       –    Associates
       –    Public Records                         – Social Network? 
              •   DMV                              – Geo‐Location?
              •   Criminal & RSO
                                                   – Click Stream? 
              •   Voter
              •   Real Property                    – Browsing Behavior? 
              •   Licenses                         – MORE ?????
              •   Bankruptcy, Tax Lien, Judgment
              •   Deceased

              MORE




Data Elements “in Play”
   On and Offline – Anonymous and PII
        • Contact Data
                                                        •   Analytics and Segmentation
             – Name
                                                        •   Spotlights
             – Address
                                                        •   Footlights
             – Email address
                                                        •   Cookies
             – Phone
                                                        •   Email behavior – click &
             – Cell phone
                                                            open
        • Shopping behavior
                                                        •   Social Network Data
        • Viewing Behavior (Digital TV) 
                                                        •   # of Networks
        • Geo‐Location (Mobile Device) 
                                                        •   # of Friends
        • Place and Time 
                                                        •   Fan Pages
        • Browsing behavior
                                                        •   Blog Data
        • Click stream
                                                        •   Preference data
        • Purchase behavior
                                                        •   Response data
        • Demographics
        • Sociographics                                 • MORE
        • Life Stage




                                                                                                3
9/30/2011




WHY….?
 ….because 
 businesses want 
 to know their 
 customer  

 and customers 
 want to be 
 delighted, 
 amused and 
 protected




 SOLVING BUSINESS ISSUES –
 CREATING CONSUMER VALUE



 Marketing                              Risk
 Acquisition
                    Identity            Fraud
 Up-sell /Cross-sell
                             Authentication
 Retention
                                 Verification




CUSTOMERS’ LIVES ARE CONSTANTLY
CHANGING
                              Every hour of every day
                            5,769 people changed jobs
                                  2,748 people moved
                             509 people were married
                              244 people got divorced
                       186 people declared bankruptcy

                  These people are your customers




                                                               4
9/30/2011




Channels Are Multiplying Rapidly




                                            New Types of Data
                                            Exploding Volume
                                            Escalating Velocity




 OVER-ARCHING CONCERN…
            CONSUMER ATTITUDES
   • Privacy is an emotionally charged issue  
      – Being watched, monitored, taken advantage of

   • Consumers feel like they are losing “control”

   • Consumers don’t understand our information based 
     economy
      – Information technology is part of our economic 
        infrastructure
      – Benefits are not fully understood by consumers or law 
        makers
      – Technology used often confuses consumer




 POLICYMAKERS’ ATTITUDES

    • “When personal data collected by
      one organization for a stated
      purpose is used and traded by
      another organization for a
      completely unrelated purpose,
      individual rights could be seriously
      threatened.”
    •
      102 Cong.Rec. 36893-4 (1974),
      quoted in Ash v. United States, 608
      F.2d 178, 180 (5th Cir. 1980).




                                                                         5
9/30/2011




  THE NEWS!

        “…vast data gathering…used to discriminate in the services that
        companies offer customers or government agencies offer citizens.”


                                                          “Eleven of the nation's largest
“…growing concern on Capitol Hill about the
expanding business of tracking consumer behavior          website operators defended their
online.”                                                  privacy practices to lawmakers,
                                                          saying it is impossible for them to
                                                          monitor all the tracking technologies
     “’the wall has been breached’ between                their
    what users share under their real identity
    online and what information they provide              sites install on visitors' computers.”
    under the cover of anonymity.”

                                                          “…the analytical skill of data
“Mr. Markey said he wasn't satisfied that                 handlers…is transforming the
"consumers are able to effectively shield                 Internet into a place where people
their personal Internet habits and private                are becoming anonymous in name
information from the prying eyes of online                only.”
data gatherers.”




 MORE NEWS!

     “…consumers who surf the Internet                      “…Stalkers Exploit Cell phone GPS “
     unintentionally surrender all kinds of 
     personal information to marketing 
     firms that use invisible tracking 
     technology to monitor online activity”                  “As WiFi Data Collection Revealed, 
                                                             New Investigation Begins”


    "Consumers still get the short end of the stick when industry shows that it is 
    incapable, or unwilling,  to better articulate what information they are collecting 
    from consumers and why we should trust industry to protect consumers' 
    personal information.”


                                                 "It is technically impossible for Yahoo! to be 
                                                 aware of all software or files that may be installed 
                                                 on a user's computer when they visit our site," 
                                                 Anne Toth, Yahoo's vice president of global policy 
                                                 and head of privacy, wrote to U.S. Reps. Edward 
                                                 Markey (D‐Mass.) and Joe Barton (R‐Texas).”




                                 Apps  
                                  Collecting even “private” 
                                  data, little governance, 
    Placefulness
                                  little enforcement…lots of         Device Fingerprint
                                  secondary 
     You are known and            commercialization                   Captures device data 
                                                                      points, formulates 
    treated in place and                                              “fingerprint,” spoofable, 
      time via the cloud                                              not “categorized” as 
                                                                      pii…yet used that way 
 The Internet of Things…  
 Multiply in order of 
 magnitude
                                 Surveillance                                Precise GeoLocation
                                                                              Multiplied by time; 
                                                                              checking in 

  eHealth & HITECH
                                  Society...                               HTML5 
  Relies on the Cloud, 
  devices monitor, report                                                  Offers even more 
  back                                                                     tracking & collection, 
                                                                           utilizes the Cloud
                   Meters                           Sniffers and Listeners
                   Rides the pipes, capturing 
                   and closing the loop on          Sits on networks, 
                   every data point including       watches traffic, sniffs out 
                   digital dust and digital 
                   exhaust of digital device        brand and…”listens”




                                                                                                                6
9/30/2011




GOOGLE STREET VIEW


   - Premise is awesome and
     beneficial
   - Collected personal information
     from unsecure WiFi networks
   - “Probably the single greatest
     breach in the history of
     privacy”
   - Numerous court cases and
     enforcement actions around
     the world




iPHONE LOCATION TRACKING

  - Hidden file that stores
    latitude, longitude, and
    timestamps
  - Post-hoc explanation did
    not do much to quell
    controversy
  - Lawsuits, Congressional
    inquiries




COMSCORE ALLEGATIONS

 -August 2011
 -Online tracking
 -Class action lawsuit
 -Alleged to have secretly collected
 SSNs, credit card #s, and
 passwords




                                              7
9/30/2011




DMA’S GUIDELINES
FOR ETHICAL BUSINESS PRACTICES
Article #32 – Personal Data
“Marketers should be sensitive to
 the issue of consumer privacy and
 should only collect, combine, rent,
 sell, exchange, or use marketing
 data. Marketing data should only
 be used for marketing purposes.”




COLLECTION LIMITATION PRINCIPLE

  “There should be limits to the
   collection of personal data and
   any such data should be
   obtained by lawful and fair
   means and, where appropriate,
   with the knowledge or consent
   of the data subject”




IDENTIFYING PURPOSES
  • Identify the purpose for which the personal
    information is collected at, or before, the time of
    collection
     • Allows the organization to determine the
        information it needs to collect to fulfill those
        purposes
  • When collecting information, there is a tendency
    to collect more than what is needed “just in
    case” you need it at a later date
  • Unless you have clearly indicated how that
    information will be used, you should not collect
    it
  • Scrutinize the need for each piece of information
    you collect.
  • If you don’t need it, don’t collect it.




                                                                  8
9/30/2011




TO DO’S
  -  Have an effective Data Governance Plan
          - Assess needs and purposes
          - The more you collect, the greater your fiduciary
     duty
          - Don’t keep what you don’t need
          -Regularly monitor compliance
  -Have an effective Security Incident Response Plan
          -Question of “when,” not “if”
          - Assess your technical, physical and
     administrative vulnerabilities
          - Address them
          -Understand what your obligations are in the event
     of a breach
          - Have it in writing and keep it up to date




Pending Legislation

• HR 611 §303
• S. 799 §301




CONTACT INFO

                Jordan Abbott
               (501) 342-0356
         jordan.abbott@acxiom.com




                                                                      9

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Notes Version: Is More Data Always Better The Legal Risks of Data Collection, Storage and Use in Marketing

  • 1. 9/30/2011 Is More Data Always Better? The Legal Risks of Data Collection, Storage and Use in Marketing Jordan Abbott Acxiom Compliance Counsel WHO, WHAT, WHY, and HOW? • Who is collecting the data? • What are they collecting? • Why are they collecting it? • What principles (if any), govern the collection of data? • Advocates’ attitudes • Court cases • What to do to minimize your risk. 1
  • 2. 9/30/2011 “Over-Collection” of Data - The Good - The Bad - The Ugly DATA IS GOLD 2
  • 3. 9/30/2011 Who Collects and uses data for “marketing”? Everybody… Fortune Start Ups SOHO Small Tier Mid Tier 500 Financial Retail Gaming Entertainment Travel Svc Insurance Technology Law Firms Health Care Television Consumer Goods Automotive Telco Manufacturing Universities Politicians Security Collections Government MORE! Data Elements “in Play” On and Offline – Marketing data?  – Name  – Name variations – Purchase data?  – Addresses – IP Addresses?  – Address Histories  – Peer to Peer Transfers?  – Associates – Public Records – Social Network?  • DMV – Geo‐Location? • Criminal & RSO – Click Stream?  • Voter • Real Property – Browsing Behavior?  • Licenses – MORE ????? • Bankruptcy, Tax Lien, Judgment • Deceased MORE Data Elements “in Play” On and Offline – Anonymous and PII • Contact Data • Analytics and Segmentation – Name • Spotlights – Address • Footlights – Email address • Cookies – Phone • Email behavior – click & – Cell phone open • Shopping behavior • Social Network Data • Viewing Behavior (Digital TV)  • # of Networks • Geo‐Location (Mobile Device)  • # of Friends • Place and Time  • Fan Pages • Browsing behavior • Blog Data • Click stream • Preference data • Purchase behavior • Response data • Demographics • Sociographics • MORE • Life Stage 3
  • 4. 9/30/2011 WHY….? ….because  businesses want  to know their  customer   and customers  want to be  delighted,  amused and  protected SOLVING BUSINESS ISSUES – CREATING CONSUMER VALUE Marketing Risk Acquisition Identity Fraud Up-sell /Cross-sell Authentication Retention Verification CUSTOMERS’ LIVES ARE CONSTANTLY CHANGING Every hour of every day 5,769 people changed jobs 2,748 people moved 509 people were married 244 people got divorced 186 people declared bankruptcy These people are your customers 4
  • 5. 9/30/2011 Channels Are Multiplying Rapidly New Types of Data Exploding Volume Escalating Velocity OVER-ARCHING CONCERN… CONSUMER ATTITUDES • Privacy is an emotionally charged issue   – Being watched, monitored, taken advantage of • Consumers feel like they are losing “control” • Consumers don’t understand our information based  economy – Information technology is part of our economic  infrastructure – Benefits are not fully understood by consumers or law  makers – Technology used often confuses consumer POLICYMAKERS’ ATTITUDES • “When personal data collected by one organization for a stated purpose is used and traded by another organization for a completely unrelated purpose, individual rights could be seriously threatened.” • 102 Cong.Rec. 36893-4 (1974), quoted in Ash v. United States, 608 F.2d 178, 180 (5th Cir. 1980). 5
  • 6. 9/30/2011 THE NEWS! “…vast data gathering…used to discriminate in the services that companies offer customers or government agencies offer citizens.” “Eleven of the nation's largest “…growing concern on Capitol Hill about the expanding business of tracking consumer behavior website operators defended their online.” privacy practices to lawmakers, saying it is impossible for them to monitor all the tracking technologies “’the wall has been breached’ between their what users share under their real identity online and what information they provide sites install on visitors' computers.” under the cover of anonymity.” “…the analytical skill of data “Mr. Markey said he wasn't satisfied that handlers…is transforming the "consumers are able to effectively shield Internet into a place where people their personal Internet habits and private are becoming anonymous in name information from the prying eyes of online only.” data gatherers.” MORE NEWS! “…consumers who surf the Internet  “…Stalkers Exploit Cell phone GPS “ unintentionally surrender all kinds of  personal information to marketing  firms that use invisible tracking  technology to monitor online activity” “As WiFi Data Collection Revealed,  New Investigation Begins” "Consumers still get the short end of the stick when industry shows that it is  incapable, or unwilling,  to better articulate what information they are collecting  from consumers and why we should trust industry to protect consumers'  personal information.” "It is technically impossible for Yahoo! to be  aware of all software or files that may be installed  on a user's computer when they visit our site,"  Anne Toth, Yahoo's vice president of global policy  and head of privacy, wrote to U.S. Reps. Edward  Markey (D‐Mass.) and Joe Barton (R‐Texas).” Apps   Collecting even “private”  data, little governance,  Placefulness little enforcement…lots of  Device Fingerprint secondary  You are known and  commercialization Captures device data  points, formulates  treated in place and  “fingerprint,” spoofable,  time via the cloud not “categorized” as  pii…yet used that way  The Internet of Things…   Multiply in order of  magnitude Surveillance Precise GeoLocation Multiplied by time;  checking in  eHealth & HITECH Society... HTML5  Relies on the Cloud,  devices monitor, report  Offers even more  back tracking & collection,  utilizes the Cloud Meters Sniffers and Listeners Rides the pipes, capturing  and closing the loop on  Sits on networks,  every data point including  watches traffic, sniffs out  digital dust and digital  exhaust of digital device brand and…”listens” 6
  • 7. 9/30/2011 GOOGLE STREET VIEW - Premise is awesome and beneficial - Collected personal information from unsecure WiFi networks - “Probably the single greatest breach in the history of privacy” - Numerous court cases and enforcement actions around the world iPHONE LOCATION TRACKING - Hidden file that stores latitude, longitude, and timestamps - Post-hoc explanation did not do much to quell controversy - Lawsuits, Congressional inquiries COMSCORE ALLEGATIONS -August 2011 -Online tracking -Class action lawsuit -Alleged to have secretly collected SSNs, credit card #s, and passwords 7
  • 8. 9/30/2011 DMA’S GUIDELINES FOR ETHICAL BUSINESS PRACTICES Article #32 – Personal Data “Marketers should be sensitive to the issue of consumer privacy and should only collect, combine, rent, sell, exchange, or use marketing data. Marketing data should only be used for marketing purposes.” COLLECTION LIMITATION PRINCIPLE “There should be limits to the collection of personal data and any such data should be obtained by lawful and fair means and, where appropriate, with the knowledge or consent of the data subject” IDENTIFYING PURPOSES • Identify the purpose for which the personal information is collected at, or before, the time of collection • Allows the organization to determine the information it needs to collect to fulfill those purposes • When collecting information, there is a tendency to collect more than what is needed “just in case” you need it at a later date • Unless you have clearly indicated how that information will be used, you should not collect it • Scrutinize the need for each piece of information you collect. • If you don’t need it, don’t collect it. 8
  • 9. 9/30/2011 TO DO’S - Have an effective Data Governance Plan - Assess needs and purposes - The more you collect, the greater your fiduciary duty - Don’t keep what you don’t need -Regularly monitor compliance -Have an effective Security Incident Response Plan -Question of “when,” not “if” - Assess your technical, physical and administrative vulnerabilities - Address them -Understand what your obligations are in the event of a breach - Have it in writing and keep it up to date Pending Legislation • HR 611 §303 • S. 799 §301 CONTACT INFO Jordan Abbott (501) 342-0356 jordan.abbott@acxiom.com 9