CANADIAN MARKETING ASSOCIATION INTRODUCES NEW STANDARDS FOR MARKETING TO TEENS

October 7, 2002

Effective January 1, 2003, the Canadian Marketing Association’s (CMA) new rules for marketing to teens, will be incorporated into its Code of Ethics and Standards. The new directives are important because they provide the only guidance in Canada (and a number of other jurisdictions) for marketing to the still vulnerable young teen group of 13 to 16. The new directives compliment the CMA’s existing rules on marketing directed to children which are published on the CMA Web site.

Exclusion: The guidelines do not apply to teens who may be living apart from their parents/guardians and who by federal, provincial or territorial statute or regulation are deemed to be adults.

Application of Privacy Legislation: Marketers must respect applicable privacy legislation including: Fully/accurately describing intended use of the personal information before or at time of collection; Obtaining the appropriate form of consent for the collection, use and disclosure of information that will identify an individual; and prominently displaying such information in marketing materials and on web-site privacy policies.

Ages of Consent and Application: Under 16 vs. age 16 and over:

A teenager is defined as one who is age 13 but has not reached the age of majority in his/her province/territory of residence.

The new rules make a key distinction between teens who are under 16 and those who are 16 and over in terms of the categories of information that can be collected, used and disclosed with the corresponding types of consent and the teen’s age. This provisions enables marketers to establish communication with teens in defined stages according to the sensitivity or the type of information; the teen’s age and the nature of the consent to be provided.

Teenagers Under 16: Marketers may collect/use a teen’s Contact information (defined as name, home address, E-mail address, home telephone number and mobile phone number) with the teen’s express consent. However, in order to disclose the teen’s contact information to a third party, the marketer must obtain the express consent of the teen’s parent or legal guardian.

Marketers must obtain the express consent of the teen’s parent or legal guardian to collect, use or disclose the teen’s Personal information (defined as any information other than the teens’ contact information and could include teen’s age student identification number, his/her preferences if they can be connected to any data that identifies an individual).

Teenagers 16 and over: Marketers must obtain the express consent from a teen for the collection, use and disclosure of his/her Contact and Personal Information.

Withdrawal of Consent: Marketers must provide teens with an easy means to withdraw consent and to end a marketing relationship. Where a parent, guardian or teen withdraws or declines permission to collect, use or disclose a teen’s information, marketers must immediately delete all such information from their data base.

General Requirements:

Responsibility:

a) Marketing to teens imposes special responsibilities on marketers to use discretion and sensitivity in marketing to teens to address the age, knowledge, sophistication and maturity of teens and to avoid taking advantage of or exploiting teens.

b) Marketers must not portray sexual behaviour or violence that is inconsistent with community or industry standards.

c) Marketers must respect the parent/guardian-teen relationship and not encourage the teen to exclude parents/guardians from a purchase decision.

d) Soliciting information from teens: Marketers shall not use/collect household or personal information from teens as a means to gain entry into that teen’s household and shall not solicit information from a teen about a third party.

e) Exposure to Children: Marketing to teens may involve the exposure of children to such communications, and in such cases, these interactions with children are governed by the guidelines concerning consent under Marketing to Children.

f) Credulity: Marketing to teens must not unduly exploit teen’s impressionability or susceptibility to peer/social pressures. Marketers shall not imply that possession/use of a product/service will make its owner superior to others or that without it, the individual will be open to ridicule or contempt.

g) Age —Appropriate Language: In addition to "Accuracy of Representation" in the Code, marketers must use language that is age-appropriate and easy to understand when marketing to teens.

h) Commercial Transactions: Marketers shall be aware that transactions with teens may not be legally enforceable and are urged to obtain qualified legal advice on the enforceability of contracts.