NFT marketers must avoid the wild west aura that now prevails and be careful not to violate privacy regulations with their email, judging by an article on Lexology by the law firm of Frankfurt Kurnit Klein & Selz PC.
For one thing, NFT brands must consider the functionality of websites that promote NFT collections.
For instance, does the site or its promotional emails deploy cookies pixels or other tracking technologies for analytics or targeted advertising? If so, disclosure is required.
And if the brand offers an email sign-up on its site, it must determine — and reveal — if the email addresses collected will be used solely for sending email updates or for purposes like creating hashed audiences for targeted advertising.
Marketing departments may claim that "'privacy' isn’t an issue because NFTs reside in Web 3.0 where everything is open, decentralized, and anonymous,” the firm writes.
“Good to go? Well, not quite,” it continues.
The law firm warns that, as a rule of thumb, “a brand is responsible for personal information it collects and processes, whether through its website, Twitter page, or Discord server (and beyond). In certain situations, a brand is also responsible (at least in part) for data collected and processed by its vendors.
Moreover, brands must evaluate their obligations under privacy laws, including :comprehensive state laws from California, Virginia, Colorado, Utah, and now Connecticut,” the firm says.