Advertisers Fear Impact of State Online-Privacy Law

Minnesota became the first state to pass an online-privacy law last week, increasing the anxiety among advertisers that others will quickly follow. Similar legislation is already under consideration by legislators in California and Mich i gan.

The Minnesota law takes effect March 1, 2003. It requires Internet businesses to obtain consent from consumers before disclosing their personal information to third parties for marketing purposes [Adweek, April 15].

Marketers will also have to de scribe the types of organizations to whom the information may be disseminated and its anticipated uses.

Advertising lobby groups contend that such legislation would place huge burdens on marketers, although it is too early to estimate actual costs of compliance with the laws.