1. Privacy Issues In Market Research Duane L. Berlin, Esq. General Counsel, CASRO Principal, Lev & Berlin, P.C. PL&B Annual Conference Cambridge, MA 22 August 2007 Lev & Berlin, P.C.

2. We’re the people who ring you at dinnertime Quantitative – surveys Qualitative – focus groups Data collection methods In-person — door-to-door; mall intercept; focus group facility Telephone Mail Fax Internet Anonymous random samples Third-party lists

3. Anonymity is a fundamental principle Industry standards and ethical codes of conduct predate most privacy laws Anonymity and data quality go hand in hand Personal information stripped from data files Responses reported in aggregate to research sponsor

4. Anonymity is a fundamental principle Respondents’ personal data may be disclosed to research client or third parties when: Respondents consent Information is used only for research purposes (e.g. no direct marketing)

5. Telephone response rates falling precipitously Consumers bombarded with unsolicited calls to their homes In response, Do Not Call laws and registries established in several countries Most of them do not apply to survey research, but public often does not make distinction between survey research and telemarketing Telephone research becoming more expensive to conduct

6. Internet-based research growing rapidly Fast and inexpensive compared to other methods Most online research conducted with “access panels” Consumers opt-in to receiving periodic emails from research firm, inviting them to complete surveys Panel members rewarded for their time (e.g. cash, points, prize draws)

7. Example of panel research recruitment website Link to Privacy Policy should be on every page. Site should use SSL encryption

8. Panels and privacy Panel research firms collect and retain personal data (e.g. contact details and profile information) Recruiting new panel members may be challenging in the future Spam, phishing, spyware and online identity theft are causing consumers to be wary about submitting personal data at websites

9. Panels and privacy To counter the threats posed by Internet scams, panel research firms must demonstrate their trustworthiness to current and prospective panellists Participation rates in online surveys can be quite high if panel is managed well, including attending to privacy concerns

10. Client-supplied lists Customer or employee satisfaction research often conducted using lists provided by client Does your organisation’s privacy policy permit disclosures of personal data to service providers for market research purposes?

11. Excerpt from Telus Privacy Code We may disclose a customer's personal information to: A company or individual employed by TELUS to perform functions on its behalf, such as research or data processing; Any such disclosure of a customer's personal information outside of TELUS is made on a confidential basis with the information to be used only for the purpose for which it was disclosed.

12. Client-supplied lists Some respondents ask, “how did you get my name and number?” Discuss with your research partner how these requests will be handled Respondents may have a legal right to know, but revealing the name of the survey sponsor at the start of the interview could introduce bias

13. Client-supplied lists Most clients rely on opt-out consent for sharing their customers’ personal data with research suppliers Opt-in consent strongly recommended for sharing customers’ email addresses, owing to spam complaints Even better, if possible, clients should issue the survey invitation emails to their customers

14. Good example of client obtaining opt-in for research

15. In this example, TNS is sending survey invitations from its domain to a client-provided list of email addresses From: TNS on behalf of CLIENT To: Rebecca Smith Subject: Complete CLIENT’s survey and receive a reward for your time Date: Wed, 6 Jun 2007 10:51:10 -0500 Sending survey invitation emails

16. In this example, Research Firm X is sending survey invitations from its domain, but spoofs the From address From: CLIENT To: Rebecca Smith Subject: Complete CLIENT’s survey and receive a reward for your time Date: Wed, 6 Jun 2007 10:51:10 -0500  Sending survey invitation emails

17. Spoofing is not in anyone’s interest Major ISPs all use authentication systems to combat spamming and phishing Sizeable proportion of spoofed emails are routed to users’ junk mail folders, or carry warning messages, or are not delivered at all

18. Questions to ask your research vendors Which industry trade associations they belong to If they participate in privacy certification programs (e.g. TRUSTe, IAPP’s CIPP) and privacy audits The URL of their panel recruitment website — review the privacy policy Whether they are on ISPs’ whitelists and adhere to industry best practices for sending emails In addition to the standard privacy compliance questions that you ask your market research vendors, find out from them:

19. Further Information : Duane L. Berlin, Esq. Lev & Berlin, P.C. Phone: (203) 838-8500 Fax: (203) 854-1652 Email: dberlin@levberlin.com