PRIVACY, LAW & ETHICS MBA 563

Source: eMarketing eXcellence Chaffey et al. BH Overview: Establishing trust and confidence in the online world – Privacy is becoming more and more important to consumers – Ethical marketers need to be really aware of this issue Gaining trust through “permission marketing”

How concerned are people about online privacy? Survey of Canadians on Privacy-Related Issues (Stats Can 2013) – scroll down for graphs Survey of Canadians on Privacy-Related Issues – 66% are very concerned about privacy – Top privacy concerns relate to finances, online security and identity theft – Growing sense that protection of personal information is diminishing – Most not confident about knowledge of privacy implications of new technologies – Growing sense of increased importance of protecting privacy in future – Canadians reluctant to share personal information with organizations

2013 survey data re privacy from Pew Anonymity, Privacy, and Security Online – Pew Internet (September 2013) Anonymity, Privacy, and Security Online Security concerns continue to rise 86% of internet users have taken steps online to remove or mask their digital footprints 55% of internet users have taken steps to avoid observation by specific people, organizations, or the government.

Other current concerns about privacy There is a big tension between what marketers want to know about people, and how comfortable people are in providing that data Marketers need to find the right balance Some examples – Canadian Privacy Commission video on social networking Canadian Privacy Commission video on social networking – What Facebook is for (#funny) What Facebook is for – The evolution of Facebook Privacy (2005 – 2010) The evolution of Facebook Privacy – Facebook privacy – 6 years of controversy Facebook privacy – 6 years of controversy – Google Street View (Neck Point Park) Google Street ViewNeck Point Park

What is the current legal framework in Canada with respect to online privacy?

Legal Protection of Internet Privacy A major concern of Internet users is that their personal data is used only for the purpose it was provided Legislation in Canada – PIPEDA (Personal Information Protection and Electronic Documents Act) PIPEDA (Personal Information Protection and Electronic Documents Act) – All businesses and other organizations had to comply by Jan 1, 2004 Note this is federal legislation – there is also provincial-level privacy legislation

Privacy requirements Information about an identifiable individual – Name, address, gender, age, ID numbers – Sensitive information (religion, union affiliations, sexual orientation, medical records etc) Identify purpose for which info is being collected Knowledge and consent of individual is required Use only for the purpose for which it was collected Keep it secure Make public your policies and practices about how private information is deal with

Privacy Policies Organizations carry out this legal requirement by providing information in privacy policies Policy must address information collected automatically from log files and cookies, as well as personal information actively provided by the user – Example: FutureShopFutureShop – Example: Microsoft CanadaMicrosoft Canada Trust can also be increased by the use of “trustmarks” from 3 rd party providers such as TrusteTruste

Privacy and cookies Cookies are a boon to marketers – just a few of the uses (video explanation from Google):video explanation from Google – Personalization – Advertising and ad networks – Shopping carts – Recognizing returning visitors – Tracking click-through from advertising to purchase They also offer big advantages to web site users However – they are also the cause of many privacy concerns

Types of cookies There are several types of cookie – Persistent cookies – Single session cookies – First-party cookies – Third-party cookies – these are the ones that cause concern No one-to-one correspondence between computer (cookie) and user Issue for marketers – In Canada we must disclose how cookies are used in Privacy Policy – EU policy now requires web sites to get users permission to capture data using cookiesget users permission to capture data using cookies – Creeping out the customers by “going too far” Behavioural re-targeting (based on previous actions, not demographics) is being called “stalking”

New legal framework for Canada “In order to build consumer trust and confidence in conducting e-business in Canada the Government of Canada is committed to establishing clear rules to protect the privacy of personal information in the new 'virtual' marketplace. This is being done through the implementation of Federal privacy legislation, and implementation of the new anti-spam legislation.”implementation of the new anti-spam legislation Industry Canada Summary of the new anti-spam legislation (CASL) Summary of the new anti-spam legislation – Very strict consent framework is one of the most notable points – Applied to all “electronic communication” not just – Best practices in marketing is now the law – We will look at the requirements in more detail when we look at marketing

We can also build trust and confidence by using “permission marketing” techniques

Permission marketing Term coined by Seth Godin (1999) Underpins the notion of relationship marketing The antithesis of “interruption marketing” and the answer to the problem of clutter – Permission marketing is….. anticipated, relevant and personal Often begins with some sort of incentive that customers “opt-in” (remember that opt-in is now required by law)

Permission as a basic principle on the web Don’t ask for personal information too early in a process Don’t ask for it until it is needed Remember, once you have customer information, all contact should be “anticipated, relevant, and personal” (and used only for the purpose(s) that they explicitly gave consent for)