The Deal
Sunday, November 8, 
2:07 pm

Billboard: FTC could soon regulate SMS-based marketing

  Share     E-Mail    Discussion    Print Story

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

Continue reading below

Also on Dealscape





Post a comment




The Deal Pipeline

Deal Video


Inside The Deal: Linklaters' Schmidt says how regulators handled Pfizer Inc.'s acquisition of Wyeth is an outlier of how others merger reviews will be conducted.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

Dealing with frozen bank lending

If your bank is not willing to lend, what can you do as your company continues to seek growth?


Judgment Call

The coming age of the renminbi

The Chinese currency will play an increasingly important role in international commerce and finance.


Industry Insight

Banking on PE investments

Howls of protest greeted the FDIC policy statement, but the financial services industry should get over it.



©Copyright 2008, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.