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DMA Statement: FTC Settlement
NEW YORK, August 17, 2004 – The Direct Marketing Association (The DMA) said that it is reviewing the settlement announced today by the Federal Trade Commission (FTC).
According to The DMA, today’s FTC settlement appears to be in line with a number of DMA guidelines that are meant to protect consumers and the reputations of DMA members.
The DMA said that protecting the proper use of marketing lists is vital to ensuring that lists remain valuable business assets. Specifically, today’s announcement appears to reaffirm the importance of the DMA guideline (Article 35, see: http://www.the-dma.org/guidelines/ethicalguidelines.shtml#collect) that calls on marketers to review marketing materials prior to the rental of marketing lists.
The DMA emphasizes to members the importance of understanding and abiding by the various laws and regulations that govern not only the content of marketing offers, but also how rules might vary depending on the marketing medium used to make those offers. This is especially pertinent to the extensive and complicated FTC, Federal Communications Commission, and state laws and regulations governing telephone marketing. Members have the responsibility to appropriately manage the complexity of this newly heavily regulated environment.
Additionally, The DMA reminds members that, earlier this year, the FTC announced that it plans to increasingly devote its attention and resources to marketing practices in the credit industry. Accordingly, The DMA recommends that, when in doubt, members involved in marketing offers pertaining to credit closely consult with appropriate counsel to ensure that they are operating in accordance with all applicable laws, regulations, and DMA guidelines.
About The DMA
The DMA is the leading trade association for businesses interested in interactive and database marketing, with nearly 4,700 member companies from the United States and 53 other nations. Founded in 1917, its members include direct marketers from every business segment as well as the nonprofit and electronic marketing sectors. Included are catalogers, Internet retailers and service providers, financial services providers, book and magazine publishers, book and music clubs, retail stores, industrial manufacturers and a host of other vertical segments, including the service industries that support them. According to a DMA-commissioned economic-impact study, direct and interactive marketing sales in the United States are projected to have surpassed $1.7 trillion in 2003, including $133 billion in catalog sales and $41 billion in sales generated by the Internet. The DMA's Web site is www.the-dma.org, and its consumer Web site is www.shopthenet.org.