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DRMA Voice November 2012

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6 Nov, 2017


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Legal and Regulatory Voices of DRMA
Senator ‘Data Pass’ Now Sets Sights on Data Brokers 
When the Federal Trade Commission (FTC) speaks, Sen. Jay Rockefeller (D-WV), chairman of the U.S. Senate Commerce Committee and self-styled “champion of consumer privacy,” apparently listens. Two years ago, with the help and encouragement of the FTC, Rockefeller led passage of the Restore Online Shoppers’ Confidence Act (colloquially known as “Rockefeller”), which banned the practice of “data pass” between online sellers and upsellers in which the latter could use the consumer’s credit card number in another transaction without getting it again from the consumer.
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Don’t Underestimate Your Own Personal Responsibility Under the Lanham Act  
Although most people believe that they can avoid personal liability for acts of their corporation if they properly incorporate their entity and observe the requisite corporate formalities, this is not always true – especially when violations of the Lanham Act are involved.
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Unsubstantiated Weight-Loss Claims May Slim Marketers’ Wallets 
Marketers of exercise equipment, diet programs and dietary supplements rely on weight-loss claims to sell their products. Recent Federal Trade Commission (FTC) consent orders have called for differing levels of substantiation to support weight-loss claims. For marketers that are not subject to a particular consent, interpreting the differing provisions of these orders and figuring out what they need to do to avoid a challenge is no easy task – and the consequences of getting it wrong could be severe.
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Marketers Must Be Careful When Using Pre-Recorded Messages 
In the event of a delayed or back-shipped order, communicating with your customers in a timely and effective manner is paramount for complying with applicable notification laws and maintaining customer satisfaction. To communicate this and other information quickly, but cost effectively, many companies call their customers using a pre-recorded message. However, pre-recorded messages are only permissible under certain circumstances – and violations can be costly. Thus, marketers should be aware of the laws governing these calls and associated risks.
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Committee Corner
DRMA News & Case Studies

DRMA Spotlights Zadspace: Turning the Box Upside Down

“Our biggest accomplishment with Zadspace in the past year is turning an idea into a reality,” says Jeff Giordano, CEO of Zadspace, a targeted ad technology company with offices in Norwalk, Conn., and El Segundo, Calif. “I’m really proud that, basically going in market with our solution in January 2012, we already have more than 20 million packages under contract. Our target goal is to be at 100 million packages over 18 months.”

Zadspace, a Direct Response Marketing Alliance (DRMA) member that creates and matches micro-targeted, data-driven promotions for marketers delivered on packages of merchandise ordered by consumers, has been in existence since 2009. However, the company had an injection of fresh management and funding in March 2011, which coincided with a new executive leadership team including of Giordano, Jeff Jensen, the company’s president and chief operating officer, and James Ho, co-founder and chief technology officer — who Giordano calls “the original idea person, whose continued focus we could not do without.”

Read the complete October 2012 DRMA Spotlight of Hampton Direct here, and view the Spotlight video here. Response Magazine highlights different DRMA members each month in our DRMA Spotlight. Interested in learning more? Contact John Yarrington at or (714) 338-6724.

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