Direct Marketing Association, The v. Huber

Filing 19

DECLARATION of Thomas J. Adler, PhD regarding MOTION for Preliminary Injunction with Incorporated Memorandum of Law 15 by Plaintiff Direct Marketing Association, The. (Attachments: # 1 Exhibit A, # 2 Exhibit B)(Isaacson, George)

EXHIBIT B

Colorado Consumer Survey
Final Results

9 August 2010

Key Findings
• The Law Invades Consumers’ Privacy
− A clear 2/3 majority of Colorado online and catalog shoppers find the
requirements to be an invasion of their privacy.
− Only 14% agree that they do not mind if the State of Colorado knows
details about their online purchases.

• The Law Is Damaging to Out-of-State Retailers
– If making a similar purchase again, a 63% would not buy from the same
seller, and 67% say their purchases from these retailers will decrease as a
consequence of the law.

2

Objective and Project Approach
Objective
• Understand how a new Colorado law, and requirements imposed by the Colorado
Department of Revenue under the law, will impact Colorado consumers’ decisions about
purchasing from Internet and catalog retailers that do not collect Colorado sales tax.

Project Approach
• 10-minute online survey with 1,019 current Colorado residents
• Respondents recruited via online panel with address-based sample (KnowledgePanel®),
supplemented by external panel
• Survey was fielded between June 2 and June 21, 2010
• Questions focused on whether consumers believe the law is an invasion of their privacy
and how it will impact their future purchases from out-of-state online and catalog
retailers.

3

Survey Sample
The respondents who compose the sample accurately represent Colorado consumers
who are affected by this law.
• 1,019 completed surveys are more than enough for results to be conclusive.
• Sample is representative of the people who are affected by this law - adults in Colorado who are
active in purchasing goods online or via catalog.
• Respondents had to pass a series of screening questions, and they qualified if they:
− Currently reside in Colorado
− Are age 18 or older
− Made an online or catalog purchase in the 6 months prior to the survey
– Respondents who work in market research or in internet or catalog sales were disqualified.
• Respondents were contacted to participate from an address-based sample (ABS) frame to ensure
representativeness.
− The key advantage of the ABS sample frame is that it allows sampling of almost all U.S.
households.
− An estimated 98% of households are “covered”.
− Regardless of household telephone status, they can be reached and contacted via the mail.
− Knowledge Network’s KnowledgePanel® was used and supplemented by an external provider.
• Sample results are weighted to population demographics to ensure that representativeness is
maintained.
4

The Law Invades Consumers’ Privacy
A clear 2/3 majority of Colorado online and catalog shoppers find the requirements
to be an invasion of their privacy. Only 14% agree that they do not mind if the State
of Colorado knows details about their online purchases.
Reporting my name, billing
address, shipping address, and
the amount of my purchases to
the State is an invasion of my
privacy.

I do not mind the State of
Colorado knowing the kinds of
products I buy, from whom I
buy them, where I have them
shipped, and how much I spend.

5

The Law Is Damaging to Out-of-State Retailers
If making a similar purchase again, 63% would not buy from the same seller, and
67% say their purchases from these retailers will decrease as a consequence of the
law.
If you were to make a similar
purchase in the future, but
with this new disclosure
requirement in place, what
would you most likely do?

As a result of this law, how
would your Internet and catalog
purchases from those out-ofstate retailers who must report
your name, address and
purchase amount to the Depart
of Revenue likely be affected
over the coming year?
6

Sample Profile

7

Sample Profile - Demographics
Gender

%

Age

%

Female

55%

18‐24

12%

Male

45%

25‐34

16%

35‐44

23%

45‐54

20%

55 or older

29%

Race

%

White

82%

Hispanic

8%

Black

2%

Employment

2+ Races

2%

Work full/part‐time

61%

Other

6%

Self‐employed

11%

Unemployed

7%

Retired

12%

Disabled

2%

Other

7%

%

8

Sample Profile – Most Recent Purchase
Most Recent Product 
Purchased*

%

Age

%

Books, music or video

44%

Over the internet

94%

Clothing or accessories

35%

By phone

5%

Consumer electronics
Drugs or cosmetics

15%
13%

By mail

1%

Computers and computer 
accessories

13%

Software
Outdoor/garden
Furniture/homeware
Office supplies
Jewelry
Tools/hardware
Cooking/kitchenware
Food or drinks
Other

10%
8%
6%
6%
5%
5%
5%
5%
14%

*Most

recent purchase made from an Internet or catalog retailer that did
not charge sales tax.

9

Survey Screenshots

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Respondents were
disqualified if they
worked in market
research or in internet
or catalog sales.

13

Respondents were
disqualified if they did
not live in Colorado at
the time of the survey.

14

Respondents were disqualified
if they did not purchase any
products from an internet or
catalog retailer in the past 6
months.

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