News

Online sales tax still tops the agenda for major retailers

The controversy surrounding the collection of online sales tax isn't new, but the renewed fervor buzzing around it is.

Marketers split on the impact of mixed postal promotions

As the U.S. Postal Service (USPS) — which reported in February losses totaling more than $3 billion — struggles to stay solvent, it is using a number of promotions to try to keep shippers shipping.

Marketers eye USPS' struggles with caution

The embattled U.S. Postal Service (USPS) faces a host of new challenges, several of which threaten to directly impact marketers. However, many who rely on direct mail say that in spite of the tumult, they'll wait and see how things pan out before altering marketing strategy.

Marketers mum on Android patent lawsuit

Although Oracle's lawsuit against Google for infringing on Java patents to develop the Android operating system has the potential to drive up costs for marketers who use the platform, most are keeping their concerns to themselves as the litigious saga continues.

Marketers question data security bill impact

Marketers have expressed skepticism about whether a new data security bill introduced in the U.S. Senate would be effective in solving what Wes Nguyen, head of marketing at Privacy Data Systems, said is a common problem for companies in an age where most information  lives online.

Retailers save on swipe fees with discounts

While consumers may think of interest as the only cost of paying with plastic, retailers have long been burdened with "swipe fees" the credit card companies charge them for every transaction. The Federal government instituted a cap on swipe fees on July 21, limiting them to 7 to 12 cents per transaction.

Retailers rally for simplified online tax code

E-commerce retailers and wireless companies are teaming up to lobby Congress to simplify the taxation process for digital goods, such as MP3s, e-books, mobile apps and games. Working with various industry groups, the companies are supporting legislation that would simplify the tax code for digital items.

USPS searches for more advertising mail

The US Postal Service literally guaranteed the effectiveness of integrating direct mail into marketing campaigns when it launched a postage-back assurance program in mid-May to attract the business of large marketers.

Smaller companies embrace USPS sampling

The financially struggling US Postal  Service distributed its first round of "Sample Showcase" mailings last month, helping marketers reach a target audience of mothers in Austin, Texas, Chicago and Denver. Brand marketers reacted positively to the program's initial results.

Marketers fear spread of CA ZIP code rules

Retail marketers are adjusting their data collection strategies after the California Supreme Court ruled in February that Williams-Sonoma could no longer collect ZIP codes during credit card transactions. Retailers are also concerned that the ruling, which has spawned similar lawsuits, will  impact other types of data collection.

Marketers step up self-regulation practices

The threat of federal consumer privacy regulation has spurred marketers to take online privacy into their own hands.

Marketers support e-commerce legislation

Industry experts said the Restore Online Shoppers' Confidence Act, passed in December, will protect some consumers by curbing dishonest practices, but it won't affect most ethical marketers.

Marketers chafe at Do-Not-Track proposal

Marketers reacted with weariness to the Federal Trade Commission (FTC) proposal to implement an online "Do-Not-Track" option that would allow consumers to opt out of all third-party tracking and behaviorally-targeted advertising.

Marketers hope new legislators tackle USPS

American voters sent a clear message about government spending last month when they voted in a new House of Representatives class dominated by Republicans.

Online ad industry strives for self-regulation

Marketers are hoping that online advertising self-regulation initiatives announced last month will increase trust and transparency with consumers, and government.

States, retailers spar over taxation measures

Retailers are again rallying to fight state initiatives to tax merchants who do business with residents without a physical presence in their states.

Merck uncomfortably numb after settlement

Merck, the manufacturer of painkiller Vioxx, has settled deceptive advertising charges for $58 million and agreed to submit all new television commercials for its drugs to the Food and Drug Administration for review for the next seven years. The agency had challenged Merck's direct-to-consumer television ads, which began in 1999.

Malware case pops up

The Ninth Circuit Court of Appeals has agreed to review a case, in which ad-supported freeware company Zango sued spyware removal company Kaspersky Lab in 2007, alleging that Kaspersky interfered with Zango's relationships with its customers by deleting Zango's pop-up serving program.

Do not call

The US District Court for the Northern District of Illinois ordered Bernard Fromstein and Judy Provencher to pay more than $49 million for their role in the 2006 Datacom Marketing Inc. case. The Canada-based scheme allegedly used telemarketing call centers to scam American businesses into paying for business directories and listings they did not order.

No space for spam

MySpace has claimed $230 million in damages — the largest anti-spam judgment ever — from Sanford Wallace and Walter Rines for allegedly stealing passwords through "phishing" scams on the social networking site.

Craigslist, eBay in classified crossfire

Web-based classifieds giant Craigslist has countersued its minority owner, eBay Inc., for allegedly violating federal and state antitrust laws. It claims eBay attempted to use information from its 28% stake in Craigslist to benefit its own classifieds site Kijiji, which launched last year in the US.

PI on Google's case

Google is being sued by David Almeida, a private investigator who is using Google AdSense to promote his business. Almeida filed charged against the Web giant in federal court last Tuesday claiming the company deceived him and charged for ads displayed on third-party Web sites, a service he claims not to have requested — Almeida alleges that he left the "optional" box blank.

FCC looks into Web traffic jams

The Federal Communications Commission has conducted two hearings on network management, following Comcast Corp.'s claim that it sometimes delayed file-sharing traffic for subscribers as a way to keep Web traffic flowing. FCC chairman Kevin Martin said that his agency has all the authority it needs to prevent Internet service providers from discriminating against Web surfers and that new legislation is unnecessary.

California dreamin' of iTax

California state lawmaker Charles Calderon is proposing a tax on music purchases made online. The proposal, AB1956, seeks to tax music downloads by adding sales tax to music purchases made online — increasing the price of the average iTunes download from 99 cents to $1.08.

EBay alleges dilution

EBay filed a lawsuit in the state of Delaware against community classified site Craigslist last Tuesday. The online auction site, which bought 28.4% of Craigslist in 2004, claims that Craigslist's two directors, founder Craig Newmark and chief executive Jim Buckmaster, unfairly diluted eBay's economic interest in the company in January.

Canadia Post/FedEx teamwork

Canada Post Corporation and FedEx Canada have teamed up to develop Priority Worldwide, a new international express service. The service will be delivered in Canada through Canada Post's retail and commercial networks, and worldwide through the FedEx international delivery network, beginning in Fall 2008.

Big dip for UK dm

According to the quarterly Bellwether Report from the UK-based Institute of Practitioners in Advertising, the direct marketing sector is showing its biggest decline in eight years. Budgets dropped 6.3% in the last quarter, the report said, spurred by weak sales and ongoing economic concerns.

Do-Not-Call Fee Extension Act of 2007 in place

The Do-Not-Call Fee Extension Act of 2007 has been enacted, setting the annual fees telemarketers will pay to access the registry in fiscal year 2009 at $54 for each area code of data accessed or $14,850 for access to every area code in the registry, whichever is less. More than 157 million phone numbers are currently enrolled in the National Do Not Call Registry.

FCC to investigate phone, cable CRM methods

The Federal Communications Commission may amend its rules on how phone and cable companies can use customer information when competing for business. It is expected to look further into whether customer retention efforts between phone service and cable providers are pro- or anti-competitive.

E-mail blocks allowed

A US District Court judge in Northern Illinois ruled that the Communications Decency Act of 1996 protects Internet service providers from being held liable for mistakenly blocking permission-based e-mail. Dave Linhardt, CEO of 360 Insight, lost a case, in which he accused broadband cable provider Comcast of unfairly blocking messages that he claimed were permission based. The judge ruled that Comcast had acted in good faith when it blocked e360's messages.

Shipshape rates

The US Postal Service has published its changes to Shipping Service standards in the Federal Register. They will take effect May 12. Express Mail prices will be zone-based prices, taking into account weight and distance. Priority Mail retail prices are increasing by 6%, while Parcel Select prices are increasing by 5.7% on average.

Farrugia settles FTC charges

Charles Farrugia, a defendant in a Federal Trade Commission lawsuit alleging a scam involving telemarketing lists and American businesses, has settled FTC charges for his role in the May 2006 Datacom Marketing case. Farrugia, who was acting as the corporate defendants' president when the case was filed, was added as a defendant in November 2006.

Lowered expectations for UPS

UPS lowered its first quarter earnings expectations to 86-87 cents per diluted share from a previously anticipated range of 94-98 cents. According to the company, lower volume trends were experienced and are expected to continue as a weak US economy causing a reduction in domestic package volume and a shift away from premium products.

IAB releases video guidelines

The Interactive Advertising Bureau released digital video ad format guidelines for in-stream, overlay and video companion ads to simplify specs and make creative submissions more efficient. The guidelines deal with linear formats such as pre-, mid-, or post-roll ads, as well as non-linear units such as overlays or product placements. The trade group is seeking comment on the guidelines throughout this month.

Online media giants unite

Google, MySpace and Yahoo have partnered to create a nonprofit OpenSocial Foundation with the goal of supporting neutrality in the development of social network widgets. Google launched its OpenSocial network last November at a time when Web applications on social networks such as Facebook were gaining popularity. In other news, Facebook suffered a security breach last week. Users' restricted photos were available for public viewing for about an hour.

Gavel falls at Ebay HQ

EBay Inc. said last week it would cut 125 jobs in Europe and North America, including 70 positions at its headquarters in San Jose, CA. The online auction site said the cuts are aimed at streamlining operations. It currently employs about 15,500 people.

FTC spam claim canned

A two-year-old case between the Federal Trade Commission and Impulse Media Group Inc. was settled in the US District Court in Seattle last week, finding Impulse Media not responsible for sexually explicit e-mail spamming by its affiliates.

Yahoo stands proud

In an investor presentation detailing its three-year financial plan and strategic initiatives, Yahoo's board of directors unanimously determined that Microsoft's January 31 unsolicited acquisition proposal substantially undervalues Yahoo.

Alliance pushes alliance

Alliance Data Systems Corp. has released a statement alleging a breach of the May 17, 2007 merger agreement between Alliance Data and The Blackstone Group. The notice demands that Blackstone affiliates, Aladdin Solutions and Aladdin Merger Sub, cure the breaches and consummate the transaction.

USPS gets greener

The USPS has launched a pilot Mail Back program that allows customers to recycle small electronics and inkjet cartridges by mailing them free in envelopes available in 1,500 post offices. Postage is paid by Clover Technologies Group, a remanufacturer of inkjet cartridges, laser cartridges and small electronics. Nineteen other companies bid for the contract.

Yahoo board rules

Yahoo Inc. amended its company's bylaws last week, extending the deadline for nominations to Yahoo's board of directors from March 14 to 10 days following the public announcement of the date for Yahoo's 2008 annual meeting of stockholders. As of press time, this date had yet to be announced. A company statement said, "the amendment will give stockholders who want to nominate one or more directors, including Microsoft Corporation, more time to do so."

Road blocks

Time Warner Inc.'s Internet service provider Road Runner began blocking images in e-mail by default in a move to protect subscribers from spam. Road Runner has about 7.7 million subscribers. Other e-mail inboxes that switch images off by default include AOL, Hotmail/WLM, Yahoo!, Gmail, Outlook 2007, and Outlook 2003.

What's in a name?

A dispute over preferential URL legislation has surfaced in the Florida courts. Chris McElroy has filed a class action suit against Network Solutions LLC and the Internet Corp. for Assigned Names and Numbers (ICANN).

Data suits

Experian filed a lawsuit against identity theft insurance company Lifelock in a California district court last week. It alleges Lifelock has illegally put fraud alerts on credit files managed by Experian, flooding its system and reducing the effectiveness of legitimate credit freezes. Lifelock executives have stated the suit is "frivolous" and a ploy to attack a competitor.

Apollo fails to launch

Arbitron and Nielsen Co. cancelled further development of their joint Apollo Project, a research tool that aimed to track purchase influencers and metrics across multiple media channels in a single database. The companies said that despite interest from Procter & Gamble and six other clients, there was not enough interest to justify the cost of a national rollout.

How to keep online secrets

The Interactive Advertising Bureau released interactive advertising privacy guidelines last week developed by representatives from Facebook, Google, ValueClick, Walt Disney Internet Group, Yahoo and others.

Bigger in flat rate

The US Postal Service has introduced a new box, which costs $12.95 and ships to any US address. The Priority Mail large flat-rate box, at a foot long and wide, and 5.5 inches tall, is 50% larger than other USPS flat rate boxes. The service will be available beginning March 3.

DHL Tightens Belt

DHL Express USA reduced its workforce by approximately 600 positions last week. The company said that workforce reductions will occur through attrition, reductions and suspending open positions across functional areas and were an effort to lower general and administrative costs due to the current economic climate.

Ratings latening

Nielsen Co. sent a letter on February 8 to its customers acknowledging the delays in ratings reports. The company has hired Cheryl Idell, former EVP of media and marketing planning at Twentieth Century Fox, to oversee Nielsen's media analytics products.

"Free" costs $2.9M

ValueClick will pay $2.9 million to settle charges of violating CAN-SPAM and other fair advertising Acts with the Federal Trade Commission. The charges address practices of ValueClick's Hi-Speed Media division in using the word "free" in its marketing materials.

HP settles

Hewlett-Packard has agreed to a financial settlement with The New York Times and three BusinessWeek journalists in connection with the company's pretexting scandal that took place in 2006. Terms of the private settlement were not disclosed.

CA lawmakers bullish on privacy

SB 364, passed by the California Senate last week, requires that consumers receive a clear, informative notification letter when personal data kept by a business or public agency has been stolen. It also requires the state to establish a central reporting site to catalog security breaches. The bill awaits action in the State Assembly. Another bill, SB 612, allows identity theft to be prosecuted in the victim's home county. Both bills were written by Senator Joe Simitian (D-Palo Alto).

Sites on postal

The Internet Corporation for Assigned Names and Numbers said it may approve dot-post Internet addresses for postal agencies as early as this month. The initiative was proposed by the UN Universal Postal Union in March 2004 in an effort to instill trust for the Web sites for government postal agencies.

Costly diet pill e-mail

E-mail marketer Sili Neutraceuticals was fined more than$2.5 million by Federal district court of Northern Illinois for violating the Can-Spam Act by sending e-mails that contained misleading subject lines and didn't offer an opt-out mechanism. The complaint said that Sili had been marketing Hoodia and human growth hormone supplements since 2004 via e-mail, which contained links to Web sites that made false claims about the product.

Mobile Chat

The Federal Trade Commission will host a two-day Town Hall meeting to explore the evolving mobile commerce marketplace and its implications for consumer protection policy. The meeting is open to the public and will be held on May 6-7 at the agency's Washington conference center.

Watching the super watchers

In an effort to apply more metrics to TV spots, The Nielsen Co. monitored US consumer preferences of the Super Bowl XLII ads on its newly launched social network platform HeyNielsen.com. Hundreds of consumers from the volunteer panel rated the ads in real-time.

Making a bad call

Missouri Attorney General Jay Nixon has obtained a consent judgment against San Francisco-based Telelytics (dba Debt Solutions) which allegedly gave false information to Missourians during calls made to sell credit card consolidation and credit counseling services.

Automatic penalty

The Federal Trade Commission has proposed a settlement with California-based Voice-Mail Broadcasting Corp. and its owner Jesse Crowe over alleged abuse of the Telemarketing Sales Rule.

Blitz on anti-spammers

Dave Linhardt, CEO of e-mail marketing firm E360 Insight, filed a third round of charges at some anti-spammers on discussion group Nanae.

Bigger Priority

The US Postal Service board of governors has approved enlarging the box used for sending Priority Mail.

IP is the new ID

The head of the European Union's group of data privacy regulators, Peter Scharr, said last week that computer IP addresses should generally be regarded as personal information.

Yahoo mulls cuts

Online giant Yahoo Inc. is reportedly facing a round of layoffs as part of a restructuring to focus on its core businesses.

Turning a New Page

NewPage Corp. will shutter parts of paper operations in three states and cut nearly 700 jobs as part of its acquisition of Stora Enso North America. The company, which makes paper used for a wide range of direct marketing activities, including direct mail, inserts, catalogs and coupons, says the moves will increase 2008 North American production between 3% and 8%.

Mounting attack on fraud

Toronto Strategic Partnership, which consists of law enforcement agencies in the US, Canada and the UK, said it has shut down cross-border teleservices and mailing operations that defrauded nearly two million US and Canadian consumers of more than $380 million over the past seven years. 644 people have been arrested and 495 search warrants have been executed.

Case closed

The Office of the Attorney General of the State of Florida has closed the investigation and will dismiss its lawsuit against World Avenue USA LLC, (formerly NiuTech), dba The Useful and Niuniu Ji.

Less Private than a mall dressing room?

Consumer concern over the privacy of online shopping grew in 2007, according to a 2,021-person study by the University of Southern California's Center for the Digital Future. Sixty-one percent of adult Americans said they were very or extremely concerned about the privacy of personal information when buying online, an increase from 47% in 2006.

Holiday shopping drop

Retail sales tumbled across the board this December in what analysts have deemed the worst shopping season in five years.

Wish upon a star

The Direct Marketing Educational Foundation is asking for nominations for its 2008 Rising Star Award and Corporate Commitment Award.

Share and share alike

United Parcel Service announced plans to borrow $10 billion to buy back stock and expand through acquisitions.

Warm state proposes credit freeze law

Virginia governor Timothy M. Kaine introduced legislation aimed at standardizing corporate response to data breaches to the state's General Assembly. It guards against identity theft and credit fraud.

New year, new stamps

The US Postal Service launched a new stamp series to commemorate the Chinese New Year

HSN makes hot pot pay-off

Home shopping cable TV network HSN settled charges that it failed to report in a timely fashion serious injuries from pressure cookers for $875,000 with the US Consumer Product Safety Commission last week.

FedEx rates rising

FedEx Corp. will increase its rates by 5.5 % for its FedEx Freight trucking division on January 14.

Congress votes yes on direct mail

US House members reportedly spent $20.3 million of tax budget last year to send constituents mass direct mail appeals on topics ranging from meeting announcements, surveys on public policy and general interest advisories, according to a review by the Associated Press.

Card info could cost you

The Federal Trade Commission has released a statement reminding merchants to comply with federal law, ensuring that full credit card and debit card numbers are not printed on customer receipts.

We know where you shop

The Census Bureau will start collecting information on the everyday purchases and spending habits of Americans in January.

USPS bog OKs budget

The US Postal Service's Board of Governors approved an appropriation request of $117.7 million for fiscal year 2009 yesterday.

Unauthorized withdrawal

The FTC and the attorneys general of seven states have charged payment processor defendants, collectively known as YMA, with violating federal and state laws by debiting or attempting to debit from consumers' bank accounts on behalf of fraudulent telemarketers and Internet-based merchants.

Books now, pay later

Rising rates raise eyebrows

A Congressionial hearing on credit card rates is set for December 11.

Calling all comments

The Postal Regulatory Commission has issued a Notice Of Request For Comments On Service Performance Measurement Systems For Market Dominant Products.

France to eBay: j'accuse!

French auction regulatory agency Council of Sales pressed charges against eBay last week, questioning its consumer protection procedures.

Verizon expanding its network

Verizon Wireless announced plans to open its network to outside mobile handsets, devices and applications by the end of 2008.

FTC surveys US ID Theft

The Federal Trade Commission found 8.3 million American adults were victims of identity theft in 2005 in a just-released report.

Malibu is back on the map

The US Post Office in Malibu, CA opened last week after being closed due to the California wildfires.

DHL Hikes Rates

DHL has announced a 4.9% increase, effective January 6, 2008, in the net average shipping rate for DHL Domestic Air Express and International Express, as well as an average increase of 4.9 percent for DHL Ground Shipments and DHL@Home.

Healthy quarter for Rodale

Rodale's third quarter gains were driven by print advertising revenues and digital initiatives, according to the Emmaus, PA-based publisher. The company is boasting 4 million new customers since the beginning of the year, with one-third of these acquired online.

USPS returns to the South Seas

The US Postal Service has reinstated ZIP codes and domestic rate services for nearly 170,000 people in the Federated States of Micronesia and the Republic of the Marshall Islands.

Fedex delivers a smaller package

FedEx has cut its earnings forecast for the quarter ending November 30. The company says that an 8% rise in fuel costs and weak less-than-truckload freight trends precipitated the move.

New stamp, the USPS has

The US Postal Service dedicated a pane of 20 Yoda commemorative stamps last week at New York's Madison Square Garden. Stevens Point Mill supplied face paper and release liner. Yoda was chosen by the public to be the only Star Wars character with its own stamp. The USPS has also issued three fundraising stamps, or semipostals. Sold at a higher price than First-Class stamps, proceeds go to breast cancer research, assistance to families of emergency relief personnel killed or permanently disabled in the September 11 attacks, or services for children exposed to domestic violence.

Duly Noted

Friend or affiliate? The Federal Trade Commission approved a final rulemaking on affiliate marketing that requires a company using consumer information provided by an affiliate to give consumers notice and a reasonable opportunity to opt out of receiving marketing materials. The final rule is an amendment to the Fair Credit Reporting Act and will be effective January 1, 2008. It applies to information obtained from the consumer's transactions or accounts, credit reports and other third-party sources.

InfoUSA reports Q3 earnings

InfoUSA has reported record revenue of $185 million for the third quarter of 2007.

WPP sees revenue increase to ú1.48 billion

WPP report revenues rose to ú1.48 billion for the third quarter of 2007, a 4.9% increase over the previous quarter, continuing a growth pattern over the last year.

Batteries included

The US Postal Service has changed standards for mailing batteries. The final rule sets a five-pound maximum mail piece weight limit when primary lithium and lithium-ion batteries are not packed with or installed in the devices they operate.

i -Way or the highway

The US Department of Transportation has granted the construction of digital billboards along Interstate and federal-aid highways protection under the Highway Beautification Act. Changeable electronic variable message signs, or CEVMS, generally take the form of large LED displays that function like giant TV screens and show advertisements that change every four, six or eight seconds. These signs must meet Federal/State Agreement (FSA) requirements for the particular state and further restrictive measures for constructing signs are still under state discretion.

Keep the USPS posted

áThe US Postal Service now requires a minimum duration of 15 days for temporary change-of-address, with a 185-day maximum. Customers can still obtain temporary change-of-address service for up to one year; however, customers must file a second request with the agency if they require the mail-forwarding service for more than six months. The new standards became effective October 10.

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