Question

Explain the primary differences between the concept of “opt in” and “opt out” as they relate to providing information to a third party. Which is “better” from a privacy standpoint? Why

Answer 1

Sol.

Opt-out refers to several methods by which individuals can avoid receiving unrequested products product or service information. This ability is usually associated with direct marketing campaigns such as, e-mail marketing, or direct mail.

Opt-in is a term used when someone is given the option to receive email. This is some sort of mailing list, newsletter, or advertising. Without obtaining permission before sending email, the email is unreqested bulk email, better known as spam.

Opt-out is better from a privacy standpoint because when a company uses opt-out marketing, the company privacy policy indicates that the consumer is presumed to want information about sales or new products, and will be sent such information unless the consumer “opts out” of receiving it. Consumers may also be given the option to opt-out of allowing a company to share the consumer’s information with affiliated companies or third parties. Some companies make opting out very simple, using a similar click-box system that other companies use for opt-in agreements, only leaving the default setting . Others make it difficult, requiring regular mail or a phone call to remove a person from a marketing list. Business groups, for the most part, tend to prefer the opt-out approach because it is easier to capture consumer information. For most businesses, the sharing, selling, or trading of personally identifiable information beyond the original transaction is part of a business strategy.

Whereas when a company uses opt-in marketing, the consumer must affirmatively give the company permission to send information about new products or sales, or to share the consumer’s information with other companies in a business relationship with the company where that consumer has an opt-in agreement. Generally, a consumer must click on website boxes or send an e-mail request to the company or its affiliates in order to authorize consumer e-mail.