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Saturday, November 21, 
10:45 pm

Billboard: FTC could soon regulate SMS-based marketing

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In the upcoming issue of Billboard, an editorial by attorney Steven Masur discusses mobile marketing techniques and the relevance of anti-spam regulation. While we're growing accustomed to Web marketing services that offer us new music, even when it might be unsolicited, the rules governing text messages are generally stricter. Masur says two Federal laws, the Telephone Consumer Protection Act (TCPA) and the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM), "staunchly restrict" unsolicited advertising via text messaging. In addition, he says "there is a significant chance" that the Federal Trade Commission will respond to concerns with a new set of guidelines covering text messaging.

mozes.gifThe editorial doesn't specifically mention opt-in mobile services such as music marketing specialist Mozes Inc., but Masur says clear opt-in and opt-out procedures are the best safeguards against upsetting regulators as well as alienating consumers. He also suggests that location-based mobile services should be strictly opt-in, to comply with guidelines provided by the wireless trade association CTIA. (Maveron LLC, North Bridge Venture Partners and Norwest Venture Partners have invested a total of $16.5 million in Mozes to date.)

Although Masur says that advertisers "have hesitated to enter the marketplace," a well-defined set of guidelines could also promote activity in the sector once everyone knows what's legal, and could even result in a mini-boom in venture investment among startups. -- Paul Bonanos

See May 13 and May 14 posts on Tech Confidential concerning Mozes

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