Protect Your Marketing From Costly Lawsuits

Marketing missteps that blossom into costly lawsuits make daily headlines, but many marketers still assume it's a risk only for the "big guys" or the "other guys." A recent Target Marketing magazine article by Alex Baydin, CEO of PerformLine Inc., a marketing compliance company, brought home the increasing scrutiny and pain of regulatory enforcement for all sizes and types of marketers. He notes that the Consumer Financial Protection Bureau alone reported $19.4 million in remediation for noncompliant marketing practices in the last six months of 2014. Penalties for marketing violations can be onerous. Baydin cites a recent CFPB complaint against PayPal over online credit sign-ups for $15 million in consumer redress and $10 million in penalties, plus a recent $11 million judgment by the Federal Trade Commission against Ashworth College for deceptive marketing. Before you shrug off the noncompliance threat because you aren't a high-dollar player, Baydin also reports recent action by the Federal Trade Commission to punish two auto dealers in Alabama and California for deceptive advertising. He lists five basic steps to protect your marketing from similar suits and fines: understanding of existing and new regulations; tracking of marketing messages across channels; a dedicated compliance team; clear and enforceable marketing guidelines for employees and affiliates; and close attention and timely response to customer complaints. For details, read http://www.targetmarketingmag.com/article/marketing-campaign-going-get-sued/