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Bilateral data protection law may backfire on small businesses – two marketing professors explain why

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Orion Brown began Black travel box to serve black women travelers who find hotel lotions and shampoos inadequate. Randel Bennett co-founded an insurance startup I stay secure for underserved Spanish-speaking drivers. Bill Shufelt and John Walker founded Athletic Brewing Company so athletes and other people who don’t drink in social situations you possibly can drink tasty non-alcoholic beer.

What do these three successful corporations have in common? In each case, the entrepreneurs built their businesses on personalized promoting platforms like Facebook and Instagram. They didn’t have the budgets for TV ad campaigns to compete with larger corporations. And they were all serving markets that had previously been ignored.

The privacy bill that Congress is considering could inadvertently make it harder to implement similar initiatives in the long run. We are professors Marketing who’re experts within the scientific study of the impact of public policy on marketing. We are concerned that the bipartisan bill – America’s Right to Privacy Act – could undermine small businesses that rely on targeted digital promoting.

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While the Americans favor an increasing number of The government is taking a more interventionist approach to protecting data privacy, and a growing body of rigorous research shows that privacy laws can have unintended consequences.

Privacy Rights and Wrongs

The American Right to Privacy Act – introduced by lawmakers in each the House and Senate in April 2024 – because the Senate summary shows, this is able to create “national consumer data privacy laws and the establishment of data security standards.”

The bill would create a national standard for data collection and use. A national standard would have the advantage of unifying the body of state laws. In an editorial supporting the bill, The Washington Post described the bill as “as tough, if not tougher, than any the states have ever brought together.” Tougher is best, right?

Not necessarily.

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The discussed draft state laws are mostly modelled on European projects. General Data Protection Regulation, or GDPRThe European Union advertises GDPR as “the strongest privacy and security law in the world.”

But a growing body of scientific literature shows that privacy regulations like GDPR can have unintended consequences. In May, the nonprofit Marketing Science Institute published Our report summarizing this work. In short, data privacy will not be free – it requires trade-offs.

The Price of Privacy

For starters, there may be a trade-off between privacy and the utility of data sharing for businesses and consumers. The 2006 book “Long tail” described how digital marketing has transformed our economy from a market focused on selling blockbuster products to a market serving many smaller niches of consumers with diverse needs and tastes. Digital marketing enables small businesses and consumers with unique needs to search out their area of interest.

There can be a trade-off between privacy and honesty. Just as consumers differ of their needs for products, additionally they differ in whether, when, and why they’re willing to share data. Tests will be seen that those that are most willing to attenuate data sharing are wealthier, more educated, and older than those that are less willing. We consider that the goal of privacy regulation needs to be to present consumers control over their data, to not decelerate the flow of data for everybody.

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More detailed personalization can exclude marginalized consumer segments. Some lower-income consumers and certain minority groups live in a digital world data desertsThe problem will not be that corporations know an excessive amount of about them. Instead, they’re so invisible that they’re unknowingly excluded from the digital economy.

Privacy will be, in some ways, an issue of privilege. We are usually not aware of any rigorous research showing that tightening digital marketing privacy rules brings tangible economic advantages to anyone, let alone lower-income consumers.

House Republican Cathy McMorris Rodgers (left) and Senate Democrat Maria Cantwell introduced the American Privacy Rights Act in April 2024.
Associated Press Press Agency

There can be a trade-off between privacy and freedom from discrimination, especially against marginalized groups. Algorithms have been known to unintentionally discriminate. For example, one study found that women were less likely than men to receive ads for STEM job openings. That seems unfair.

Regulators, including the creators of the American Privacy Rights Act, have really helpful that corporations limit the data they collect to only what is affordable and needed, minimizing details about race, gender or other protected class attributes. But without this information, how will regulators and corporations check data-driven marketing algorithms for unintentional discrimination?

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Finally, there may be a trade-off between privacy and marketer innovation. Many small brands exist because digital marketing allows them to create sustainable small-scale businesses without huge media budgets. Digital promoting costs a fraction of what it takes for traditional TV campaigns, saving small businesses within the U.S. $163 billion per 12 months. Small brands more advantages with more precise targeting than large brands with a wider reach.

A growing body of research shows that privacy regulations can decelerate innovation and reduce the competitiveness of markets. This is very damaging to the identical small businesses and entrepreneurs who profit most from the power to exactly goal their messages to different consumers.

Recently, privacy advocates have begun to label those that advocate the advantages of personalized marketing as “corporatists.” Ironically, this small corporations who profit probably the most from personalized marketing, as our report for the Marketing Science Institute shows.

Giants like Unilever and Nike are gaining competitive advantage from privacy regulations and changes to platform privacy policies which can be dramatically raising the associated fee of acquiring latest customers for small businesses, while giants like Amazon and Walmart are gaining latest appeal as promoting platforms. Similarly, studies show that GDPR has strengthened the dominant market position of Google and Facebook in Europe and disproportionately increased the prices of privacy compliance for smaller corporations.

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We actually consider that the bill now before Congress has value in protecting consumers’ privacy rights. Maybe a throw included exemptions for small businesses, for instance, but without addressing how they rely on others’ data to accumulate customers. In June, divisions between Republicans and Democrats led to canceling tag session.

We consider Congress can be smart to seize the present impasse and punctiliously consider how the proposed law would impact smaller retailers and disadvantaged consumer groups.

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This article was originally published on : theconversation.com
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Trump cuts off the minimum wage increase

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Executive order 14236, minimum wage, President Trump, federal contractors, hourly workers


President Donald Trump canceled the key executive order from the time of Biden, which raised the minimum wage for federal contractors to USD 17.75 per hour, the movement that warned work supporters will negatively affect a whole lot of hundreds of employees with low earnings, with a very significant impact on black employees, especially in the states through which black Americans are a big a part of the federal force. working.

Pisuction, adopted by the executive order 14236 on March 14 Effectively excludes Executive ordinance 14026, signed by President Joe Biden on April 27, 2021, which progressively increased the minimum wage for federal contract employees.

The currently reborn order of Biden, which from 2022 recorded full effects, raised a minimum wage for these employees and directed the secretary of labor to introduce future corrections to maintain the inflation step.

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From January 1 It caused In a minimum wage of USD 17.75 for individuals employed by private firms and non -profit organizations concluded by the federal government. By raising the federal minimum wage for all employees requires congress activities, the Department of Labor is entitled to set higher wage standards especially for federal contractors. Contractors include a large spectrum of employees in various industries, from the staff of the war and catering service to IT specialists.

Estimates from the Institute of Economic Policy (EPI) in 2021 forecasted that about 1.9 million people, including construction employees, organized federal tasks of contracts in 2022. About 390,000 employees, representing about one five of all federal labor, it was that their wages would increase as a result of the order of executive biden 14026. collectively Experience the increase in remuneration by $ 1.2 billion.

Proponents of the next minimum wage argue that he assures that taxpayers’ dollars support job offers that provide life salary, as an alternative of encouraging the “Race to the bottom” through which contractors compete, providing the lowest possible salary. They also indicate research suggesting that the increase in the minimum wage results in lower trade in employees, improvement of worker efficiency and increased efficiency.

For example, Study 2021 Krista Ruffini He identified that minimum wage increases in care homes correlated with higher worker results, reduced violations of control, less possibility to stop health states and lower mortality of residents.

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The removal of Trump executive ordinance 14026 is capable of reverse these profits for around 390,000 federal contract employees with low remuneration entitled to no less than USD 15 per hour under the regulation. If the Trump administration fully dismantled this principle, the minimum wage for these contractors would probably return to the level set by Obama’s administration in 2014, which was USD 13.30 per hour. Alternatively, if the administration eliminated the next minimum wage for federal contractors, people working in the US and not using a higher minimum wage could decelerate their minimum wage to the current federal minimum of only 7.25 USD per hour.

Trump executive order 14236, “Additional resignations of harmful executive orders and activities”, DirectlY dismissed the executive ordinance 14026. After that, the Department of Work announced that stopping the enforcement of the order from the time of Biden and its implementation rules, initiating steps to officially dismiss 29 CFR Part 23.

Professioners of labor and progressive groups criticized this movement as an attack on the working class, especially when rising maintenance costs are already a major problem. They Argument that disgusting The decision awards the private sector to the governmental agreement freedom to scale back wages of a whole lot of hundreds of employees. Data from Bureau of Labor Statistics (BLS) in 2022 ensure the context of the influence of minimum wage policies. This yr, about 2 percent of black hourly employees earned Federal minimum or less wage.

Disproportionate effect on black employees

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It is predicted that the remuneration of the federal contractor minimum remuneration in disproportionate influence on black employees who I discovered historically More fair employment opportunities in the public sector in comparison with the private sector.

The data emphasize that no less than 18.7% of all federal employees are black, their representation is way higher in some states. The participation of a black worker in state and federal employment is the highest in Georgia (43.8%), Louisiana (37.6%), Mississippi (34.8%) and Tennessee (34.6%). Averting a minimum wage in the amount of USD 17.75 for federal contractors in those states where a big a part of the federal workforce is black, can have a very clear negative economic impact on the black community.

Earlier evaluation of the minimum wage in the amount of USD 15 for federal contractors showed that a big percentage of people that would receive wage increases were coloured employees, including many black employees, often at work in the lower remuneration sector under federal agreements. The winning of this pay floor threatens disproportionately with the damage to those employees and potentially expands existing racial differences when it comes to income and wealth.

Trump’s administration claims that its principles give priority to American robots. However, the dismissal of the federal contractor of the minimum wage is according to the model decision that undermines wage standards for people from the working class.

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Supporters of the working force claim that this movement is contrary to the claims of supporting American employees, leaving many vulnerable to potential salaries. Existing wage protection pursuant to the Act on the Service Agreement (SCA) and Davis-Bacon ACT (DBA) may not properly compensate for these employees, because their wage levels could also be lower and usually are not all the time usually adapted to inflation.

The repeal also introduces uncertainty for contractors and instability of the affected labor.

It is predicted that Trump’s decision to cancel the executive order raising the minimum wage for federal contractors will cause disproportionate damage to black employees, especially in the United States with a high percentage of black federal employees.

Rolling threatens to scale back wages, reduce financial security and potentially exacerbation of racial economic differences, increasing concerns about the involvement of administration in fair economic possibilities.

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(Tagstranslat) minimum wage

This article was originally published on : www.blackenterprise.com
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Business and Finance

Meet the same guys of the Ole line

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Waiting for things or possibilities will be time consuming and annoying; However, if you have got at the least USD 40, you’ll be able to call one of Robert Samuel’s guys themselves, and they’ll do it for you.

Called by a compatriot from New York, the same guys were seen for people for luxurious samples, holes in the restaurant, and recently the Sean “Diddy” Combs housing. With many good hustle and bustle visible on the web, Samuel began his concert in 2013 during the madness of “Cronut” Croissant-Donut, and now he has 45 employees on his letter and charges from USD 25 to 37.50 USD per hour.

While people attempt to give you how To make a fast zlotySamuel says it’s about using what’s around you. “Always watch out for everything around you. When people complain, just put on a thoughts of thinking and check if you have a solution to what they are complaining about,” said the owner of the company

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“You would probably shock yourself and be on the edge of the next steps.”

His journey began while working as a business representative at AT & T. After nervously that he intended to miss the commission control with the time of the recent edition of the iPhone 5, he decided to comfort himself by publishing an commercial on Craigslist, offering his services to attend in a queue to get one. Three hours later, Samuel was employed only in order that the customer would inform him that he placed a web-based order when he arrived forward.

Then he sold his place in the queue for $ 100, giving the bulb power in his head – and leaving $ 300 in his pocket. “I said,” Well, what can I do? Wait some time. I did lots of sitting on the pavement, “recalls Samuel. “So I created accounts on social media and regularly began.”

His journey even took him outside the NYC limit. Samuel found himself on the plane to face in a queue for the client at the latest meeting of Berkshire shareholders in Berkshire Hathaway in Omaha, Nebraska, at the starting of May 2025. However, the scene of the courtroom became lucrative for his activities, covering the trials of Bankman, Ghislaine Maxwell, and even President Donald Trump in 2024.

According to members of the Samuel team, they’d to fight women I’m attempting to cut the line To take a take a look at Luigi Mangione, a person accused of killing the general director of Unitedhealthcare Brian Thompson. “It was freezing, women tried to limit,” said Brandon Sutton.

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Sutton and two colleagues, Tim and Brian, survived frosty in New York temperatures, because their anonymous customer paid them USD 25 per hour. Regardless of what his clients employ their team, Samuel says that he wouldn’t wish to do the rest, because he can “realize people’s dreams.” “It’s the beauty of bringing joy to people, doing something as simple as waiting in a queue,” said Samuel.

(Tagstransate) Luigi Mangione

This article was originally published on : www.blackenterprise.com
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Ebonie Ward has an official opening of 550 RMG in Atlanta

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Ebonie Ward, 550 RMG


On May 17, the old fourth branch in Atlanta was buzzing with celebration when the entertainment director and entrepreneur Ebona Ward officially opened the door 550 rmgThe recent headquarters of her company, eleventh & Co. A ten,000 square feet of 10,000 is a return to her hometown and a brave investment in black creativity, cooperation and community.

“To be honest, it really means everything,” Ward said about having a brand new headquarters. “You work so hard to achieve a certain level of success. I have been in the industry for 13 years and I have rented a lot of space. I have worked with many other companies and brands, but have something of my own … I just feel completely different.”

Ward travel in the entertainment industry covers over a decade, including rap stars management comparable to Future, Gunna, DDG and Flo Milli. As one of probably the most influential black women in music, she is understood for connecting her sharp business vertex with deep involvement in community, culture and mentoring.

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550 RMG is a brand new house of five black corporations, including eleventh & COCreative Agency Six Degrees, Production Collective Genius Club, Non -Profit initiative and a month on the table and the approaching nine distribution, a brand new distribution company that’s to start out in September 2025.

“It gives me so many opportunities to help many more people,” said Ward. “Especially other black women who are interested in music business, entertainment, television, music, film … allows me to open and support so many other people.”

Ward has an extended history of cooperation with the founders of enterprises positioned at 550 RMG.

“I worked with B. Wright (Brian” Bwrightous “Wright) since 2011, when he was in Morehouse,” she said. “I used to have a Sneaker boutique on Peter Street and sold his shirts. We have been working together for years, and this allows us to support our companies in a more intentional way.”

The recent facility can be an area in which creativity and community coexist. Designed by an interior designer based in Atlanta, Annies Lamantia, 550 RMG features a recording studio, edition and production bay, wardrobe showroom, open kitchen, patio and plenty of conference rooms.

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“Studio is a place where magic is created,” Ward said, although she also emphasized the importance of versatility of space. “I really wanted to pull energy from this space. I wanted the versatility of opening up, so that people could cooperate and be common, but also have a space in which people can be focused and have a certain level of privacy.”

The intention for 550 RMG is deeply rooted in service. “This is the point for me – the messenger,” said Ward. Her Non -Profit organization, a spot on the table, recently hosted the third annual dinner on the occasion of HBCU scholarship holders. “I’ve always walked about music, art, philanthropy, fashion and finance. That’s what I call my Big Five. But philanthropy has such a close and expensive place in my heart.”

Ward’s commitment in social care is as comprehensive as its business tip. From events supporting women who’ve experienced losses in the course of the Mother’s Day, to programming breast cancer awareness in October, significant financial investments in scholarships for young black women attending HBCus, her work through the place on the table changes life. “I am a member of Delta Sigma Theta Borority Incorporated, and the service is always the first. But even more so, service with a mission,” she said.

https://www.instagram.com/reel/dios_qkak70/?igsh=mtnyBMPPMXF2Aglmeq===

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Building a team of powerful black women can be the predominant part of Ward’s legacy. While Ward is the overall director, owner and company manager, Jenna Tyson, Jenna Tyson, is the marketing director (CMO), Alexandria Kindle has 11thAnd the financial director I CO (CFO), Krishna Lee is EVP Touring & Logistics, and Zita R. Brack is the corporate’s internal legal advisor.

“I’m not without them,” Ward said. “As far as I am celebrated, if I could put them on a pedestal – on every pedestal I am in – they would be right next to me. I saw it and I was looking for many of them who came with me because of how amazing I thought.”

With the launch of nine distributions on the Ward horizon, there’s the inspiration for a more fair music industry. “Independence flourishes,” she said. “You don’t have to be signed now to the main label to succeed, but to be able to run a company, it requires a team. This is what we will be able to do differently – you can enter the incubated system in which everything is already working.”

550 RMG was born in addition to vision. “I wanted a comprehensive store,” she said. “There was no institution or a company where you were able to do everything in one.”

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While the obligations to work require an everyday travel department to Los Angeles, a return to Atlanta, to construct 550 RMG, seemed vital. “You must be a change you want in the world,” she said. “If I do not give people work, resources and tools, I do not create opportunities. Black women must see that it is possible.”

(Tagstranslat) ebonie ward

This article was originally published on : www.blackenterprise.com
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