Why buying attendee lists can backfire: legal, ethical, and practical risks

In the era of data-driven marketing, attendee lists from major events like conferences and trade shows are highly sought after. These lists often contain valuable information such as email addresses, job titles, and company affiliations.

I frequently receive unsolicited offers to purchase event lists, and the volume of these emails has been steadily increasing.

The people selling these event lists often include data brokers, spammers, and sometimes even rogue employees from legitimate companies. They acquire the information through various means, such as scraping public websites, exploiting security vulnerabilities, or purchasing data from other dubious sources. Some might gather data from social media profiles, online forums, or email sign-ups where individuals might have unwittingly shared their information. In many cases, the data is obtained without the consent of the individuals listed, raising significant concerns about privacy and data protection.

How are these lists obtained?

There are several ways that individuals and companies might claim to acquire attendee lists:

• Event Registration Leaks: Sometimes, attendee data is obtained through unauthorized access to event registration systems. If a database is hacked or if an insider sells the information without consent, the resulting list is both illegally obtained and unethical to use.
• Web Scraping: Some companies utilize web scraping tools to harvest publicly available data from event websites or social media platforms. While technically legal in some cases, this method often violates terms of service and can lead to the collection of inaccurate or incomplete data.
• Third-Party Vendors: Occasionally, event organizers partner with third-party vendors who may mishandle attendee data, leading to unauthorized sales. However, most reputable event organizers enforce strict data protection policies to prevent this.
• Fake Listings: In many instances, the "attendee list" being sold might not even exist. Scammers create fake lists, hoping to lure unsuspecting buyers into paying for data that is either fabricated or highly unreliable.

Why these lists may not be legitimate

The risks of purchasing such lists are significant, particularly in light of global data privacy regulations:

• Data Privacy Regulations: Since the introduction of laws like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States, selling personal data without consent has become increasingly illegal. Non-compliance with these regulations can lead to severe penalties. As of 2023, GDPR fines alone have surpassed €1.5 billion, with companies like Amazon facing fines as high as €746 million.
• Questionable Data Quality: Lists obtained through dubious means often have poor data quality. Email bounce rates for purchased lists can range from 5-10%, compared to less than 1% for organic lists. This not only reduces the effectiveness of your marketing efforts but also damages your sender reputation.
• Ethical Concerns: Purchasing and using data without proper consent can lead to significant ethical issues. In a 2022 survey by Cisco, 32% of consumers reported they had stopped doing business with a company due to concerns over data privacy practices. This highlights the potential damage to your brand’s reputation.

Should you consider purchasing such a list?

The risks of buying these lists far outweigh any potential short-term gains. Here’s why:

• Legal Risks: If the list was acquired in violation of data protection laws, your company could face hefty fines and legal action. Under GDPR, fines can reach up to 4% of a company’s global annual revenue.
• Reputation Damage: Being associated with unethical data practices can significantly harm your brand. Trust is crucial in today’s marketplace; according to the 2023 Edelman Trust Barometer, 81% of consumers consider trust a deciding factor in their purchasing decisions. Using questionable data practices can erode this trust.
• Low ROI: The effectiveness of marketing to purchased lists is often poor. Campaigns sent to these lists typically experience low open rates (as low as 5-10%) and high unsubscribe rates (0.5-2%), compared to industry averages. This results in a poor return on investment and wasted resources.

The last word

Offers to purchase lists should be viewed with skepticism. The risks of legal repercussions, damage to your brand, and poor marketing results make these lists far from worth the potential downsides. Instead, invest in building your attendee lists through ethical, legitimate methods that will serve your business well in the long term. The statistics clearly demonstrate that the potential costs—in terms of legal fines, reputational harm, and wasted marketing efforts—are too high to justify the use of questionable data.