®

Do Not Track Legislation and Zip Code as

Personal Information

Sheila Colclasure, Public Policy & Privacy Compliance OfcrJordan Abbott, Compliance Legal Leader

ACXIOM BACKGROUND

Founded in 1969

Public in 1983: Nasdaq (ACXM)

Headquarters: Little Rock, Arkansas

More than 7,300 associates worldwide

FY 2010 revenue: $1+ billion> Over 70% of total revenue is

• from clients under long-term contracts

WHO IS AFFECTED BY DO NOT TRACK?

Start UpsStart Ups SOHOSOHO Fortune 500Fortune 500Mid TierMid TierSmall TierSmall Tier

Everybody

PoliticianPolitician

EntertainmentEntertainmentGamingGamingFinancial SvcFinancial SvcRetailRetail

TechnologyTechnologyInsuranceInsurance

Travel Travel

UniversitiesUniversitiesTelcoTelco ManufacturingManufacturingAutomotiveAutomotiveConsumer Goods

Consumer Goods

TelevisionTelevisionHealth CareHealth CareLaw FirmsLaw Firms

SecuritySecurity CollectionsCollections GovernmentGovernment MORE!MORE!

Marketing

Acquisition

Up-sell /Cross-sell

Retention

Marketing

Acquisition

Up-sell /Cross-sell

Retention

Risk

Fraud

Authentication

Verification

Risk

Fraud

Authentication

Verification

IdentityIdentity

SOLVING IN THE DIGITAL WORLD

ECONOMICS

>$$ 300 Billion Dollar Internet Ecosystem>$$ 283 Billion US Marketing Spend >$$ 26 Billion spend on Online Marketing>3 million people hold Internet Advertising

jobs> Interest Based Advertising = 457% return

$$ 600 Million in Internet Advertising produces $$ 39 Billion in sales/economic activity

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DO NOT TRACK

>Regulation of Behavioral Advertising>OBA knows no geographical boundaries>Hyped up media coverage>Anecdotal Harms>State Legislation >Effects on businesses and state

economies

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DO NOT TRACK… HISTORY

>Federal Trade Commission has long been interested

>Consumer Advocates engaged>Several Public Policy Groups engaged>Technology challenges>Consistency across mediums/channels

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DO NOT TRACK…FUTURE

>Federal Trade Commission>Industry Response>Global Pressures>Technology innovations>Evolving consumer acceptance>State Role

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SURVEILLANCE SURVEILLANCE SOCIETY... SOCIETY...

Collecting even “private” Collecting even “private” data, little governance, data, little governance, little enforcement…lots of little enforcement…lots of secondary secondary commercializationcommercialization

Collecting even “private” Collecting even “private” data, little governance, data, little governance, little enforcement…lots of little enforcement…lots of secondary secondary commercializationcommercialization

Apps Apps Apps Apps

Captures device data Captures device data points, formulates points, formulates “fingerprint,” spoofable, “fingerprint,” spoofable, not “categorized” as pii…not “categorized” as pii…yet used that way yet used that way

Captures device data Captures device data points, formulates points, formulates “fingerprint,” spoofable, “fingerprint,” spoofable, not “categorized” as pii…not “categorized” as pii…yet used that way yet used that way

Device FingerprintDevice FingerprintDevice FingerprintDevice Fingerprint

Sits on networks, Sits on networks, watches traffic, sniffs out watches traffic, sniffs out brand and…”listens”brand and…”listens”

Sits on networks, Sits on networks, watches traffic, sniffs out watches traffic, sniffs out brand and…”listens”brand and…”listens”

Sniffers and ListenersSniffers and ListenersSniffers and ListenersSniffers and Listeners

Offers even more Offers even more tracking & collection, tracking & collection, utilizes the Cloudutilizes the Cloud

Offers even more Offers even more tracking & collection, tracking & collection, utilizes the Cloudutilizes the Cloud

HTML5 HTML5

Multiplied by time; Multiplied by time; checking in checking in Multiplied by time; Multiplied by time; checking in checking in

Precise GeoLocationPrecise GeoLocationPrecise GeoLocationPrecise GeoLocation

Rides the pipes, capturing Rides the pipes, capturing and closing the loop on and closing the loop on every data point including every data point including digital dust and digital digital dust and digital exhaust of digital deviceexhaust of digital device

Rides the pipes, capturing Rides the pipes, capturing and closing the loop on and closing the loop on every data point including every data point including digital dust and digital digital dust and digital exhaust of digital deviceexhaust of digital device

MetersMetersMetersMeters

Relies on the Cloud, Relies on the Cloud, devices monitor, report devices monitor, report backback

Relies on the Cloud, Relies on the Cloud, devices monitor, report devices monitor, report backback

eHealth & HITECHeHealth & HITECHeHealth & HITECHeHealth & HITECH

Multiply in order of Multiply in order of magnitudemagnitudeMultiply in order of Multiply in order of magnitudemagnitude

The Internet of Things… The Internet of Things… The Internet of Things… The Internet of Things…

You are known and You are known and treated in place and treated in place and time via the cloudtime via the cloud

You are known and You are known and treated in place and treated in place and time via the cloudtime via the cloud

PlacefulnessPlacefulnessPlacefulnessPlacefulness

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ICON PROJECT: ABOUTADS.INFO

> Are the choices easy to understand & action?Are the choices easy to understand & action?> Do choices cover all information practices? Do choices cover all information practices? > Are the choices easy to understand & action?Are the choices easy to understand & action?> Do choices cover all information practices? Do choices cover all information practices?

> Reasonableness Test Reasonableness Test > Notice suitable for the device? effective for the media? Notice suitable for the device? effective for the media? > Complete disclosure? Before collection? send out a probe? Begin to Listen? Complete disclosure? Before collection? send out a probe? Begin to Listen?

Secondary use? Third party transfers? Passively collected info? Secondary use? Third party transfers? Passively collected info? > Any “surprises”? Any “surprises”? > Measuring for harm? Measuring for harm?

> Reasonableness Test Reasonableness Test > Notice suitable for the device? effective for the media? Notice suitable for the device? effective for the media? > Complete disclosure? Before collection? send out a probe? Begin to Listen? Complete disclosure? Before collection? send out a probe? Begin to Listen?

Secondary use? Third party transfers? Passively collected info? Secondary use? Third party transfers? Passively collected info? > Any “surprises”? Any “surprises”? > Measuring for harm? Measuring for harm?

Meaningful TransparencyMeaningful TransparencyMeaningful TransparencyMeaningful Transparency

ChoiceChoiceChoiceChoice

11Ads Preferences

“In matters of principle, stand like a rock; in matters of taste, swim with the current.”

Thomas Jefferson

PINEDA V. WILLIAMS-SONOMA STORES

• Song-Beverly Credit Card Act – Cal Civ. Code §1747.08– Generally prohibits requesting or collecting

“personal information” during a credit transaction– Intended to prevent marketing databases

• Linens & Things• Party City• February, 2011, California Supreme Court held that zip codes are personal information

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“FALLOUT” FROM WILLIAMS-SONOMA

• Since February, almost 200 class action lawsuits have been filed against retailers in California alleging violation of Song-Beverly• Lawsuits across the country alleging similar claims

• New Jersey• Massachusetts

• Multiplier = Thousands of Transactions x statutory damages of up to $1,000

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“FALLOUT” FROM WILLIAMS-SONOMA

• State Legislation to mirror Song-Beverly• At least 15 states have a Song-Beverly like statuteTexas

- House Bill 3011Louisiana

- House Bill 128

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THE FUTURE OF RETAILING

Near Term>Uncertainty

•Things that were “universally” considered to be okay are not–Possibility of inconsistent judgments

•Things that are innovative may not be okay Long Term>Inefficiency

•Increase in unfocused marketing •Abandonment of worthwhile investments•Potential effect on state revenue

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