rsalz@bbn.com (Rich Salz) (01/25/91)
CONTACT: Pamela Cay John Ford
Lotus Development Corporation Equifax
(617) 693-1305 (404) 885-8309
Janice Brown
Janice Brown and Associates, Inc.
(617) 332-8066
FOR IMMEDIATE RELEASE
Lotus, Equifax Cancel Shipment of Lotus MarketPlace:Households
Cite Consumer Privacy Concerns
CAMBRIDGE, Mass., Jan. 23, 1991 --- Lotus Development Corporation and
Equifax Inc. today announced the cancellation of Lotus MarketPlace: Households,
a CD-ROM database product of names, addresses, and related marketing
information on 120 million U.S. consumers originally scheduled for shipment in
March. The companies said the decision to cancel the product came after an
assessment of the public concerns and misunderstanding of the product, and the
substantial, unexpected additional costs required to fully address consumer
privacy issues.
Lotus also announced that it will discontinue shipment of Lotus
MarketPlace: Business, a database of information on seven million U.S.
businesses that began shipping in October 1990.
"Unfortunately, Lotus MarketPlace: Households is at the apex of an
emotional firestorm of public concern about consumer privacy. While we believe
that the actual data content and controls built into the product preserved
consumer privacy, we couldn't ignore the high level of consumer concern," said
Jim Manzi, Lotus' president and chief executive officer. "After examining all
of the issues we have decided that the cost and complexity of educating
consumers about the issue is beyond the scope of Lotus as a software provider."
"Technology is radically changing the way we work and, more importantly,
how we use information," said Manzi. "Balancing the advantages of easier
access to information with the individual's right to privacy is only the first
of many new issues our industry will grapple with in the coming years."
C.B. (Jack) Rogers, Jr., president and chief executive officer of Equifax,
which provides the data in MarketPlace, said: "Equifax has made several key
investments in consumer-oriented initiatives, including our sponsorship of a
national survey of consumer attitudes on privacy. The major survey finding was
that consumers are willing to make trade-offs for the use of their personal
information when they clearly understand the benefits. Despite our significant
consumer education efforts, consumer misperceptions about this new product
offered through this distribution channel persist."
In developing Lotus MarketPlace: Households, Lotus and Equifax implemented
a number of privacy-related controls that exceeded traditional direct-marketing
industry practices. These practices were the result of extensive research of
the consumer privacy issue prior to product development, including testing the
product concept with several consumer focus groups and counsel from a
nationally recognized consumer-privacy expert. The practices included:
* Limiting the data. Specifically excluded from the product were
telephone numbers and individual personal data such as actual
income, credit data, and purchase history;
* Offering the data only to legitimate businesses, through a
controlled purchase process;
* Educating and advising users about the proper legal and ethical
responsibilities for list usage; and
* Providing several Lotus- and Equifax-funded options for consumers to
have their names removed from the database.
"We developed MarketPlace in response to a perceived need and real market
opportunity. MarketPlace is an innovative tool for small businesses, who are
often shut out of sophisticated direct marketing because of its cost or
complexity," said Manzi. "The market for tools like MarketPlace is a viable
one. At the same time, the product is not part of our core business, and Lotus
would be ill-served by a prolonged battle over consumer privacy."
Mr. Rogers added: "Equifax is a technology leader and, equally important,
a pioneer in the area of consumer privacy protection in the information
industry. While we remain committed to using the most sophisticated technology
available, we are equally committed to maintaining the delicate balance between
legitimate information needs of business and consumers' privacy concerns."
The Lotus MarketPlace product family was a suite of CD-ROM (compact-disc,
read-only memory) database tools that used the Apple Macintosh personal
computer to make it easy for businesses to find new customers.
Lotus Development Corporation (NASDAQ:LOTS), founded in 1982, develops,
markets, and supports business software and CD-ROM databases that help users
access, analyze, communicate, and share information. The company's first
product, Lotus 1-2-3, is the most popular computer software program in the
world, with more than 14 million users. Lotus markets its broad range of
products in more than 65 countries and offers users comprehensive support
options, including 24-hour-a-day, seven-day-a-week support in the United States
for PC users of its 1-2-3 spreadsheet.
Equifax, Inc., (NYSE:EFX) is the leading provider of information for
consumer financial transactions. Established in 1899 in Atlanta, Equifax today
has 15,000 employees in 1,100 locations in the United States, Canada, and
Europe. Equifax provides information services and automated systems that help
customers grant credit, insure lives and property, select new employees, market
products, and complete other transactions that benefit the economy, business,
and consumers. Equifax's revenues for the year ended December 31, 1990, were
more than $1 billion.
###
--
Please send comp.sources.unix-related mail to rsalz@uunet.uu.net.
Use a domain-based address or give alternate paths, or you may lose out.johnl@iecc.cambridge.ma.us (John R. Levine) (01/25/91)
In article <3231@litchi.bbn.com> rsalz@bbn.com (Rich Salz) writes: > C.B. (Jack) Rogers, Jr., president and chief executive officer of Equifax, >which provides the data in MarketPlace, said: "... The major survey finding >was that consumers are willing to make trade-offs for the use of their >personal information when they clearly understand the benefits. Despite our >significant consumer education efforts, consumer misperceptions about this >new product offered through this distribution channel persist." Uh huh. Perhaps some of us misperceiving consumers clearly understand that there is no benefit at all to us from a product whose sole purpose is to increase the amount of junk mail and junk telephone calls we get, and to increase the availability of junk mailing lists to anyone who happens to have a PC and a CD-ROM. This is particularly the case since the sort of people who will crack the copy protection to produce and mail more mailing labels than they've paid for are exactly the ones who are the most likely to annoy us with misleading and fraudulent solicitations. -- Send compilers articles to compilers@iecc.cambridge.ma.us or {ima | spdcc | world}!iecc!compilers. Meta-mail to compilers-request.
tom@ssd.csd.harris.com (Tom Horsley) (01/25/91)
> "After examining all >of the issues we have decided that the cost and complexity of educating >consumers about the issue is beyond the scope of Lotus as a software provider." Fortunately in this case, the cost and complexity to educate Lotus were not beyond the scope of ``consumers''. -- ====================================================================== domain: tahorsley@csd.harris.com USMail: Tom Horsley uucp: ...!uunet!hcx1!tahorsley 511 Kingbird Circle Delray Beach, FL 33444 +==== Censorship is the only form of Obscenity ======================+ | (Wait, I forgot government tobacco subsidies...) | +====================================================================+
gordon@sneaky.UUCP (Gordon Burditt) (01/28/91)
> "Unfortunately, Lotus MarketPlace: Households is at the apex of an >emotional firestorm of public concern about consumer privacy. While we believe >that the actual data content and controls built into the product preserved >consumer privacy, we couldn't ignore the high level of consumer concern," said >Jim Manzi, Lotus' president and chief executive officer. "After examining all >of the issues we have decided that the cost and complexity of educating >consumers about the issue is beyond the scope of Lotus as a software provider." I urge everyone to continue flaming Lotus about Lotus MarketPlace: Households until they (1) promise NEVER to try it again, (2) announce the firing of those responsible for the idea in the first place, and (3) admit that the problem is not consumer education, but the fact that the whole idea is Evil and Immoral to begin with. > C.B. (Jack) Rogers, Jr., president and chief executive officer of Equifax, >which provides the data in MarketPlace, said: "Equifax has made several key >investments in consumer-oriented initiatives, including our sponsorship of a >national survey of consumer attitudes on privacy. The major survey finding was Since you probably have to give your family income, name, address, and probably SSN to participate in the survey, you can imagine how biased it is. > * Offering the data only to legitimate businesses, through a > controlled purchase process; Realize that by the tests probably used for "legitimate business", (volume of business done, length of time in business, traded on NYSE, etc.) the Burglary Systems Division of a well-known firm in the field of Organized Crime is more legitimate than all of the other Fortune 1000, Lotus, and any major piece of the Federal Government. A good test of how strict the test is: if Equifax comes out legitimate, the test is no good. > * Educating and advising users about the proper legal and ethical > responsibilities for list usage; and You mean there ARE ethical ways to use the list? Name one. Anything involving telemarketing or unsolicited mail doesn't count. > * Providing several Lotus- and Equifax-funded options for consumers to > have their names removed from the database. How about providing only options for consumers to be IN the database? Gordon L. Burditt sneaky.lonestar.org!gordon
shiva@pro-smof.cts.com (System Smof) (02/06/91)
In-Reply-To: message from nazgul@alphalpha.com I've also heard similar complaints about MetroNet's Phone*File database which is available on CompuServe. It's not nearly as complete as the Equifax database is, though. ---- The SMOF-BBS 512-467-7317 The World's First Online Science Fiction Convention ProLine: shiva@pro-smof UUCP: crash!pro-smof!shiva Internet: shiva@pro-smof.cts.com ARPA: crash!pro-smof!shiva@nosc.mil
cyberoid@milton.u.washington.edu (Robert Jacobson) (02/07/91)
And there's another service on CompuServe, whose name escapes me, that offers you a chance to check out respective neighborhoods by such interesting factors as income, maintenance of the yards, and personal purchasing/recreation characteristics, ostensibly to locate "good" schools for your kids before you commit to a move. My, wouldn't you hate to accidentally move in among Them?! And you thought only the real estate people practiced "redlining".... Bob Jacobson
peter@taronga.hackercorp.com (Peter da Silva) (02/08/91)
In article <15950@milton.u.washington.edu>, cyberoid@milton.u.washington.edu (Robert Jacobson) writes: > My, wouldn't you hate to accidentally move in among Them?! What do you mean by "Them"? People of a significantly lower socio-economic status? Or are you implying some sort of racial thing, here. Since it's extremely unlikely the database lists race, where do you get that from? -- (peter@taronga.uucp.ferranti.com) `-_-' 'U`