Live from PMA Law Conference: Online Legislation May Tighten
Marketing lawyers anticipate more scrutiny and possible regulation of online promotions in the coming year.
That’s one trend under discussion at the Promotion Marketing Association Law Conference in Chicago this week.
Legal experts are watching the progress of the Can Spam Act recently passed in Congress; it would pre-empt existing spam laws in 35 states and California’s new Online Privacy Protection Act of 2003, set to take effect July 1, 2004.
“Spam will be the issue of the year” for 2004, predicts conference speaker Linda Goldstein, partner with Manatt, Phelps & Phillips, New York City.
One concern is how the Can Spam Act will affect viral campaigns, said Collier Shannon Scott partner John Feldman. “At what point does a marketing message that consumers forward to their friends become a conversation between private individuals?”
California’s new law is also the first to require Web sites to have a privacy policy, and covers any site that collects data from California residents. The California law served as the impetus for Republicans and Democrats to agree on language for the federal Can Spam Act, said Alan Sutin, partner with Greenberg Traurig, New York City, and a conference speaker. “In the same way, we’ll see privacy regulations unfold … and change rapidly over the next 12 months,” Sutin said.
Watch state and federal legislators to follow California’s lead, advises Feldman: “California is on the vanguard of privacy regulation.”
The Federal Trade Commission and Children’s Advertising Review Board (a division of the Better Business Bureau) are aggressively enforcing COPPA regulations. Marketers shouldn’t expect leniency if they breach kids’ privacy by mistake, said Goldstein: “The inadvertent nature of a mistake is not a defense. The FTC is looking at whether you have procedures in place to prevent mistakes.”
Lawyers also are concerned about a handful of patents for online games execution. Marketers can modify on-pack/online sweepstakes fulfillment to avoid infringement on a patent held by Laurie Cairns (Nov. 2002 and June 2003 PROMO). A new patent held by Global Communications covers the use of plastic game pieces with mylar film, used to read win/no win messages on computer screens. Lastly, Universal Incentive Corp. has applied for a patent affecting online games.
Keynote speaker George Foreman put in his own two cents about spam. The boxer-turned-preacher said business can learn from religion: “It’s never a good deal unless everyone is happy about it. That’s [the solution] to spam: To make them tune in, make them love you. They’ll never call you ‘spam’ if they love you.”