Why the FTC meeting on mobile matters
February 11, 2008
Mickey Alam Khan is editor in chief of Mobile Marketer
Marketers know only too well what happens when a government agency comes knocking on your door in the name of consumer protection: more regulation. So pay heed to the Federal Trade Commission’s new interest in mobile commerce.
As reported earlier in the week (see story), the FTC on May 6-7 will host a Town Hall-format meeting titled, “Beyond Voice: Mapping the Mobile Marketplace.” Free and open to public, the event will focus on mobile marketing and commerce practices and how they relate to consumers.
The agenda includes mobile messaging’s role in mobile commerce; the consumer’s ability to control mobile applications; adapting ads to mobile devices and the challenges of small screen disclosures; mobile commerce aimed at children and teens; industry attitudes to fraud, cost disclosures and billing; and security threats.
The FTC is seeking applications for panelists, inviting additional topics for discussion and requesting research and data to help with the event. Mobile marketers should throw their whole weight behind the initiative.
It’s understandable, the FTC’s curiosity. Mobile marketing and commerce is a new channel, developing in the same manner that the Internet did a decade ago. It brings with it its own idiosyncrasies, issues and opportunities. And it is here to stay as a growing player in the media mix.
Law or flaw?
However, marketing offers as much opportunity for use as abuse. Various marketing sectors have suffered legislation for the unscrupulous practices of a few. The most recent examples include the CAN-SPAM Act legislating acceptable email practices and the Federal Communications Commission’s Do Not Call registry that dealt outbound telemarketing a body blow.
Is it premature to worry about mobile marketing abuse? Perhaps. But err on the side of caution. Each topic of discussion at the upcoming FTC event is indicative of the agency’s areas of concern. What if text messaging use for marketing becomes ubiquitous? Will that lead to an abuse of permission granted? Will there be a consumer backlash? Will it lead to a Do Not Text registry? Who knows?
On the advertising side, will pop-ups become a regular feature on mobile Web? What about shady adware? And cookies – are the rules for first- and third-party cookies widely understood?
Similarly, there are concerns about retail conducted over the mobile phone. What protections do the carriers or retailers have in place to avoid theft of credit card data? What if the phone is lost – is there a way to stop all transactions by calling a toll-free number as is done with stolen or lost credit cards? As for billing, what role will the carrier play?
Equally important is the carrier’s liability as the conduit for mobile advertising and commerce as these sectors grow in consumption and spend.
Put simply, what the FTC and consumer-protection advocates want to hear is this: Are you putting the consumer’s interests above yours? Are the practices level?
Now we’re not saying that there aren’t standards or guidelines. The Mobile Marketing Association has the best rulebook on mobile marketing practices. But more best-practice guidelines will need to be set up by other marketing, online and retail trade lobbies as mobile marketing, media and commerce evolve to one day rival computer-based online advertising and e-commerce.
The best regulation is self-regulation. Mobile marketers can learn from Internet and direct marketers and expect some of the same development and legal trajectories. Forearmed is forewarned.
So, mobile marketers should take this opportunity to represent themselves at the FTC event. Either mobile marketers define their industry or Washington will.