Skip to main content

Big Brother Really IS Watching You

While this is not a political blog, government actions that specifically affect online marketing or e-commerce are fair game. Several states have recently begun sending nasty letters to taxpayers who purchased tobacco products online from several e-retailers, including eSmokes.com.

How did they obtain information on these customers? This issue is about far more than the perils or expense of smoking; these actions have the potential to affect anyone and everyone involved in online marketing or e-commerce, anyone who buys or sells anything online. Do you sell products online? Are you absolutely positively certain that you comply with EVERY state and federal tax statute enacted in the last 100 years? Ever purchased anything online, maybe a book or CD, perhaps some jewelry, say back in 2001? Are you certain that the online retailer paid all appropriate taxes on your purchase? Disturbing? Absolutely. Please read on.

First, the state actions: the Minneapolis Star Tribune reported on this activity in late July of this year, although for some mysterious reason the articles can no longer be found on their site. I was able to track down one of the articles here. Minnesota, among other states, is apparently using a dusty 60-year-old law called the Jenkins Act, originally enacted to combat cross-border cigarette smuggling by the Mafia, to bypass the normal channels of obtaining evidence and simply demand that legal, private companies in other states simply throw open their customer records to state investigators. This law may run afoul of the Internet Tax Freedom Act, not to mention Indian tribal sovereignty.

There are several problems here. First, no state has any more right to search through your online purchasing records than they do to break down your door and search your home. There needs to be evidence of a crime, probable cause to believe that you were involved in it, and a warrant granted by a judge before the state can legally search your online history or your home. Several states have therefore violated the Fourth Amendment prohibition of unreasonable searches. The Jenkins Act itself may be an unconstitutional violation of the Tenth Amendment.

Second, if the online retailers were acting illegally, isn't it logical to prosecute them? To use an offline analogy, if the proprietor of a local retailer in your neighborhood, let's call it John's Bait Shop and Beauty Supply, decided to increase his profits by simply failing to pay sales taxes to his state, that would be clearly be illegal. The state would no doubt pursue John in this case. However, it is inconceivable, unless the state not only knew but could prove that John's customers were in on this activity, that the state would track down John's customers for payment of back taxes.

Minnesota, along with Michigan and at least 10 other states, have violated the Constitution in their pursuit of higher revenues; even more disturbing than the fact that online retailers have been forced to throw open their confidential customer information is that the major credit card companies are also exposing their records (which means of course, your records). And Minnesota "intends to work with the U.S. Postal Service and commercial transportation companies to monitor cigarette deliveries to residential addresses." So Big Brother is now searching your mail and FedEx packages as well.

Wisconsin governor Jim Doyle is one of the few sane politicians fighting this practice.

The state of Minnesota, along with the other participating states, apparently believe that it is fine to violate the Constitution in their pursuit of revenue. They've violated the privacy of their citizens. They've violated certainly the spirit, if not the letter, of the Internet Tax Freedom Act. Worst of all, however, they have violated the trust of the entire e-commerce marketplace.

To the long list of nefarious cretins intent on stealing your private online information -- hackers, spammers, perpetrators of fraud -- we can now add state revenue officials. They want your money. They won't stop with tobacco users. Express your outrage. And watch your back.

Comments

All Time Greats

Top Notch Digital Marketing Tip: Google AdWords and PPC

MARKETING: 101 Looking for some online marketing strategy or social media tips to grow your business? Well, you’ve come to the right digital marketing resource! Web Market Central has been doling out the proper digital marketing advice for years. And as you already know, marketing to customers online is 100 times easier than using dated, expensive and traditional marketing tactics. Like seriously, who uses billboards in 2019? But you already know how effective digital marketing can be in the modern age. So now that you're totally convinced of what you already knew, let’s give you today's top-notch digital marketing tip! The Pure Unfettered Power of PPC (Pay-Per-Click) and PPC Campaigns Just like optimizing your site to rank for keywords, you can use our online marketing tips to pay to run advertisements on Google so that your business is shown on the first page of search engine results. Ranking this way is instantaneous whereas SEO (Search Engine Optimizati

7 Reasons Every Business Needs to Twitter

This post has been moved to 7 Reasons Every Business Needs to be on Twitter on the Webbiquity blog. ***** technorati tags: Twitter Dell Zappos customer service influence-the-influencers market intelligence Tony Hsieh b2b Twitter del.icio.us tags: Twitter Dell Zappos customer service influence-the-influencers market intelligence Tony Hsieh b2b Twitter icerocket tags: Twitter Dell Zappos customer service influence-the-influencers market intelligence Tony Hsieh b2b Twitter Contact Tom Pick: tomATwebmarketcentralDOTcom

Getting More Out of Each Click with "Post-Click Marketing"

With the economy now officially in a recession (as if we didn't know that), marketers are under increasing pressure to do more with less. On the interactive marketing side, few marketers will get budget increases enabling them to drive more clicks. The challenge, then, is to maximize marketing productivity—to get more leads out of the same number of clicks. This is the first of two posts that will look at how to improve conversion rates to get more value from each click. One answer to this challenge is provided by "post-click marketing," a.k.a. lead automation management vendors. While the specifics of each service vary, all of them essentially: automate the process of extracting visitor IP information from your log files; match the IP address to an organization; filter out ISPs; and map the company name to one or more external databases to provide additional information (company size, industry, key contacts etc.). The better services also use geo-location filte

How to Use SEO: Leverage SEO To Be Found Online and Boost Your Online Marketing

All businesses that want to attract customers online, no matter the business size or age, have few options other than Search Engine Optimization (SEO).  SEO In The Box™ by Results Driven Marketing®, LLC There are roughly 1.8 billion websites online, and basic SEO allows Google to find and index or catalog your webpages.  After that, Google serves you up to searchers in the organic section.  The question remains: where they list your site, on page one or page 22 or further back? SEO controls your positioning. Do you want to be found online or not? If your business is online or you want your product or service to be found online, then Search Engine Optimization (SEO) is a must, and knowing how to use SEO to leverage the power of the internet is vital. Arguably, an effective SEO strategy gets you on the organic results section of the search engine results pages (SERP). Organic traffic is highly valuable and requires high-quality SEO. But even businesses that use l

Top-Notch Digital Marketing Tip: Advertisements That Make Sense

MARKETING: 101 Looking for some online marketing tips to grow your business? Well, you’ve come to the right digital marketing resource ! Web Market Central has been doling out the proper DM advice for years. And as you already know, marketing to customers online is 100 times easier than using dated, expensive and traditional marketing tactics. Like seriously, who uses billboards in 2019? But you already know how effective Digital Marketing can be in the modern age. So now that you're totally convinced of what you already knew, let’s give you today's top notch-digital marketing tip! Advertisement Congruence If your business is running ads this is one of our most important online marketing tips! Ad congruence is when your ads and landing pages look alike or have the same message. Have you ever clicked on an ad and been taken to a page that looked nothing like the ad? When your ads look like the web pages they lead to, customers will feel like they are in

Top Notch Digital Marketing Tip: Optimize Your Site

Looking for some online marketing tips to grow your business? Well, you’ve come to the right digital marketing resource! Web Market Central has been doling out the proper digital marketing advice for years. And as you already know, marketing to customers online is 100 times easier than using dated, expensive and traditional marketing tactics. Like seriously, who uses billboards in 2019? But you already know how effective digital marketing and an seo strategy can be in the modern age. So now that you're totally convinced of what you already knew, let’s give you today's top-notch digital marketing tip! Optimize Your Site to Improve Search Engine Rankings Most small business owners know that their websites need to be optimized in order for search engines, like Google and Bing, to find them and rank them on the search engine results page. If you don’t know, that’s okay. You can learn all about Search Engine Optimization and SEO best practices here to help impr

Best of 2007: Articles and Blog Posts on SEM

Search engine marketing (SEM) is one of the fastest-growing categories in all of advertising, because it is both measurable and logical: present your ads when people are searching for what you're selling. A well-crafted search marketing program can provide not only broad brand exposure at a very reasonable cost (with CPMs of $10 or less), but also high-ROI lead generation. As with any other type of advertising, however, a poorly-designed campaign will be a disappointing waste of money. In addition to best practices in search engine marketing , the following articles and blog posts were among the best of 2007 at providing helpful guidance for creating and managing effective search marketing programs. Five Common Paid Search Mistakes That Can Sink Your Campaign by Search Engine Guide Blogger Jennifer Laycock explains how common mistakes such as "ego bidding," writing a single ad for all keywords, and directing all of your traffic to a single landing page can limit the res

Best of 2008: Social Media Optimization, Part 2

This content has been moved to Best of 2008: Social Media Marketing on the Webbiquity blog. ***** technorati tags: best free tools for monitoring social buzz social media marketing Six Pixels of Separation Mitch Joel Techrigy SM2 Key Web Data Chris Lang Google social bookmarking HubSpot Catie Foertsch Kate Morris TopRank Online Marketing Blog Jessica Cameron-Ruud Duct Tape Marketing John Jantsch CircleUp Traffic Travis del.icio.us tags: best free tools for monitoring social buzz social media marketing Six Pixels of Separation Mitch Joel Techrigy SM2 Key Web Data Chris Lang Google social bookmarking HubSpot Catie Foertsch Kate Morris TopRank Online Marketing Blog Jessica Cameron-Ruud Duct Tape Marketing John Jantsch CircleUp Traffic Travis icerocket tags: best free tools for monitoring social buzz social media marketing Six Pixels of Separation Mitch Joel Techrigy SM2 Key Web Data Chris Lang Google social bookmarking HubSpot Catie Foe