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ARTICLE · 16 OCTOBER 2012

Think Twice Before You ‘Invite A Friend’

Referral marketing is a great tool, but don’t forget about privacy issues.

CanadaPrivacy

Referral marketing is a great tool, but don't forget about privacy issues.

Current customers are a valuable source of referrals. Search "invite a friend," "tell a friend" or "refer a friend" online and you will find that this form of marketing is ubiquitous. Typically, this web-based marketing tool involves the user inputting e-mail addresses or allowing a website or mobile application to harvest the user's address book information to generate a list of potential "friends" who will receive an electronic invitation (usually by e-mail) to visit a website or join the user in a social network or promotional site, game or activity.

It is important, however, to take steps to avoid tripping over the privacy and antispam compliance issues relating to the collection and use of the "friend's" personal information during these promotions.

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