States Settle With Action Direct Marketing Over Dubious Data Collection

Share this article:
The attorneys general from Texas and five other states this month reached a settlement with Action Direct Marketing, El Cajon, CA, and its owner, Robert D. Hodges, to stop ADM from using deceitful means to obtain medical information from consumers and then using that information to conduct direct marketing campaigns.


The attorneys general, led by Texas Attorney General John Cornyn, said ADM claimed to be conducting a national health survey when it called consumers seeking data about certain ailments, when in fact it was compiling a list of people with hearing loss, heart conditions, blood pressure problems and other conditions. The company then sold these lists to health care providers and conducted direct mail campaigns on behalf of the providers.


Under terms of the settlement, ADM is prohibited from misrepresenting the purpose of its surveys and must disclose that the information obtained could be used for marketing purposes. ADM and Hodges also agreed to pay $25,000 in civil penalties as part of the settlement.


Hodges was not immediately available for comment.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

B2B Marketers Can Now Self-Serve Ads on Facebook Exchange

B2B Marketers Can Now Self-Serve Ads on Facebook ...

Sitescout's new integration with FBX opens up access to any size marketer, minus campaign spend minimums, according to the RTB company.

Day Two at DMA2014

Day Two at DMA2014

It was awards day in San Diego, with Teradata's Lisa Arthur being named Marketer of the Year, and Google Japan being feted for its direct mail prowess.

Today's Forecast: Chilly With a 10 Percent Lift in Parka Sales

Today's Forecast: Chilly With a 10 Percent Lift ...

The Weather Company launches a website offering marketers free advice on how to take advantage of shifts in the weather.