Privacy Under Scrutiny
So what do you, as a cataloger, need to know about this issue of consumer privacy? First, that the Federal Trade Commission (FTC) has already signaled its intent to uphold current privacy regulations. And make no mistake: Marketing practices are under scrutiny.
For example, in February Hershey Direct and Mrs. Fields Cookies incurred civil fines for violating the Children’s Online Privacy Protection Act. FTC officials cited the merchants for collecting personally identifiable information (PII) from children online without first getting the proper parental consent. Mrs. Fields had to dish out $100,000, and Hershey Direct, $85,000. The separate settlements bar the companies from violating the rule in the future (translation: they’re now on the FTC’s radar screen).