FTC regulations could force marketers to delete customer information
Recently proposed regulations by the Federal Trade Commission could place restrictions on how long retailers and direct marketers can store electronic consumer data, reported the Wall Street Journal.
The paper said the regulations would require companies to delete information about customers once their transaction is complete, which would hurt direct marketers because they would not be able to draw on a wealth of customer data acquired online.
"We think companies should determine what data is still relevant," Linda Woolley, a spokeswoman for the Direct Marketing Association, told the paper. "If I bought a red dress from Nordstrom, where's the harm in selling me a blue dress from Sachs."
Another recent motion by the FTC is the proposed "Do Not Track" button that internet users can use so their data is not collected as they browse the web, which has garnered support from the Digital Advertising Alliance and the World Wide Web Consortium.
Given that internet marketing remains in flux and future regulations are uncertain, companies might be wise to pursue tried-and-true marketing methods, such as direct mailing. Address validation software and other next-generation solutions have made the process of direct mailing efficient and cost-effective.