Catalogers’ Legal Challenges ’07 (and Beyond)

In addition to the economic ramifications (some companies have agreed to multimillion-dollar settlements), being named as a defendant in a highly publicized, consumer-fraud class action can have a serious, adverse impact on a company’s brand reputation and customer relations.

Cost-justification for delivery charges, based on a documented cost study, is an excellent defense to allegations of a “secret profit center.” In addition, improved disclosure practices are a direct marketer’s best protection against these kinds of class action lawsuits.
Privacy and Security
Because of fragmentary federal regulations and inconsistent state laws, compliance in the area of privacy and security can seem overwhelming to direct marketers. Security violations often are splashed across newspapers, and the impact on customer loyalty can be quick and severe.