Businesses of all stripes have found ways to make use of SMS messaging as part of their marketing tactics. Compared with more traditional channels (such as television or radio advertising) texting is affordable and easy to implement. Little wonder it’s such an attractive proposition – especially for small and medium sized businesses.

Equally, other forms of mobile-based outreach are taking hold as a primary form of marketing. A growing number of people own smartphones. Companies can now engage with consumers using sophisticated technologies like geo-targeting. Done right, such tactics are to the mutual benefit of businesses and customers.

But along with this boom in all forms of mobile marketing comes a raft of new responsibilities. Chief among them is the necessity for protecting consumer data. Businesses must now consider the impact that targeted, personalized advertising may have on ethical issues such as confidentiality and privacy. As exciting as the possibilities of data collection and geo-location are, they demand a whole new level of corporate self-regulation.

Clearly, to get the most out of many mobile services, consumers must surrender a certain degree of privacy. In the case of geo-targeting, businesses demand access to GPS locations in order to provide the service. The upshot it they have to be transparent and honest about the way in which they plan to use personal data.

Legislation has already evolved to deal with text marketing. New FCC regulations were implemented on October 16, 2013. Under the new rules, customers have to opt-in before a company can send text messages to them. By opting in, they have provided ‘express consent’ to be a recipient of corporate communications. Some of the obligations companies are bound by include:

• Giving a clear description of the nature of the text programProviding the name of the company
• Providing clear instructions on opting out
• Giving an indication of the likely frequency of text messages
• Giving an explanation of any additional carrier costs 

The federal government has considered introducing legislation to further protect consumer data privacy for mobile users. Some steps have been made at the local level - notably Senator Al Franken’s endorsement of the Location Privacy Protection Act in 2011, which would require businesses to obtain express consent before collecting or sharing data. The Senate has given the legislation the nod, but Congress has yet to deal with it.

Currently, the onus falls on companies themselves, so it’s vital that consumers are alert to the integrity of brands with whom they do business. As far as companies go, the existing situation provides a platform to build strong, personal, long-term relationships that are based on mutual trust. Do this, and you will develop true brand loyalty – without the need for ethical practices to be imposed by law from above.