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Data Protection Act

Direct Marketing: Can you make that call?

Recent changes in the Data Protection Act has enabled companies to register individual business numbers with the Corporate Telephone Preference Service (CTPS). As a result, business-to-business marketers need to regularly check their telesales plans against the register to avoid a hefty fine.

What you need to know

The update to the Data Protection Act came into force on 25 June 2004. When a telephone number (fixed line or mobile) is registered with the CTPS all businesses have a maximum of 28 days to update their contact databases. Thereafter, businesses attempting to market their products and services to a registered number will be penalised.

Previously the Telephone Preference Service made it possible for private individuals, sole traders and partnerships to opt out of receiving unsolicited marketing or fundraising calls. Now this facility has been extended to all companies. The only difference with the administration of the service is that all registrations must be made in writing and each registration is renewable annually. Companies registering numbers need to be aware that registering the switchboard number does not automatically include all direct dial (DDI) numbers. Registration is free and companies can register as many numbers as they wish.

There are two specific exceptions where it is permissible to call a registered number. It is possible to call to confirm contact details and to undertake market research. However, the guidelines are very clear and under no circumstances can these exceptions be used to convey marketing messages.

The Penalties

The Information Commissioner is encouraging the courts to impose harsh penalties on organisations that flout the law. A minimum fine for a breach of the legislation is £5,000.

Your next steps

1. Inform all internal customer facing resources of the changes to the legislation, the potential impact to the business and new company process to ensure compliance
2. Update any internal Human Resource or company policies and guidelines
3. Review current marketing practices for contacting prospective customers and modify accordingly
4. Develop the process that suits your organisation best to ensure that your contact database is screened against the CTPS at least every 28 days. Depending on your organisation this could involve redefining telesales processes, changing access to contact databases or assigning a resource with responsibility for regularly updating records.

More Information

For further information visit the websites of :
The Information Commissioner (www.informationcommissioner.gov.uk)
The Telephone Preference Service (www.tpsonline.org.uk)