California Legislature Declines to Advance SB 1348
Washington, DC, June 26, 2014 — The Direct Marketing Association (DMA) today successfully led the fight to defeat Senate Bill 1348, and was joined by a wide group of affected companies, nonprofits and other interested stakeholders negatively impacted by the legislation. As a result, the California Assembly committee on Arts, Entertainment, Sports, Tourism and the Internet declined to advance a bill that would have exposed consumers to fraudsters and impostors while crippling California’s $21 billion Data-Driven Marketing Economy.
“Defeating SB 1348 is a significant victory for Californians and for the state’s economy,” said Christopher Oswald, vice president of state affairs for the Direct Marketing Association. “This deeply flawed bill would have stifled the responsible use of data in the marketplace that consumers value and businesses rely upon, while needlessly exposing Californians to identity fraudsters.”
Authored by East Bay Democratic Senator Mark DeSaulnier, SB 1348 would have required on-demand review and deletion of personal information gathered and used by companies and nonprofits for a variety of reasons, including responsible marketing purposes.
“Although the bill ostensibly targeted so-called ‘data brokers’, its overly-broad provisions captured a wide variety of businesses, nonprofits and other groups,” Oswald said. “Likewise the bill’s definition of ‘personal information’ was too expansive and would have restricted use of data not readily identifying an individual.”
The bill’s provisions also would have needlessly exposed Californians to identity theft though fraudulent requests by impostors seeking to review and delete an innocent person’s personal data.
Moreover, the bill would also have negatively-impacted California’s Data-Driven Marketing Economy (DDME), which fueled more than 90,000 jobs and provided more than $21 billion in revenue to the state’s economy in 2012.
About Direct Marketing Association (DMA)
The Direct Marketing Association (www.thedma.org) is the world’s largest trade association dedicated to advancing and protecting responsible data-driven marketing. Founded in 1917, DMA represents thousands of companies and nonprofit organizations that use and support data-driven marketing practices and techniques. DMA provides the Voice to shape policy and public opinion, the Connections to grow members’ businesses and the Tools to ensure full compliance with ethical and best practices as well as professional development.
In 2012, the Data-Driven Marketing Economy (DDME) added $156 billion in revenue to the U.S. economy and fueled more than 675,000 jobs. The real value of data is in its exchange across the DDME: 70 percent of the value of the DDME – $110 billion in revenue and 478,000 jobs – depends on the ability of firms to exchange data across the DDME.