In This Bulletin

NEWS

Rapier faces repitch for £1.5m Digital UK direct marketing brief

Booktrust launches radio campaign to promote Bookstart programme

The Good Agency wins direct award

beCogent scoops Employer of the Year at the National Business Awards

Explore Brand Republic

DMA's Smith speaks out against mandatory opt-in

by Sarah Johnson at the IDMF, Marketing Direct 30-Apr-08, 14:15

LONDON - The direct marketing industry would face ‘armageddon' if mandatory opt-in was imposed in the UK, DMA chairman Rosemary Smith has said.

Her comments came three weeks after the Information Commissioner Office's decision to impose an opt-in only regulation on the ad-targeting system Phorm.

Smith, also a director of data protection law consultancy Opt-4, said that the market would "change dramatically" if all businesses had to obtain permission before contacting new or current customers.

Phorm is designed to tailor ads to individuals by looking at their web browsing history and taking account of the sites they visit and search terms they use.

Earlier this month, the ICO made the controversial decision to stop Phorm from automatically assuming permission from web users and has insisted it gets all users to enroll before it tracks their online movements.

Speaking at the IDMF, Smith said: "Companies would lose around 80% of their customer data if the government imposed mandatory opt-in regulations and it could put a lot of companies out of business." She was not overly concerned by the recent ICO decision however, assuring that the DM industry could avoid future legislation.

"If we stay sensible and maintain standards then we can avoid a mandatory opt-in. It's only when companies don't meet targets or don't follow the rules that we are put under pressure by lobbyists."

Since an opt-out service was introduced on the electoral register, numbers of people choosing not to receive any marketing information from businesses has increased to 40%. Telephone is the most opted-out medium with 14.7 million people registered on the Telephone Preference Service.

Comments

david m - 02/05/2008

"IF the government imposed mandatory opt-in regulations..." what do you mean "IF", 'surely Smith, as a director of data protection law consultancy' alreasy knwo full well, that the law already states that direct Marketing IS ALREADY mandated to be Opt-in ONLY as per all the existing DPA and other Uk and EU law. is she now admitting to knowingly breaking the existing laws to make that potential 80% more profits than they would do if they were following the letter of the law today...? it seems yet again readers need to read all the factual data in this matter over on the CF thread http://www.cableforum.co.uk/board/12/33628733-virgin-media-phorm-webwise-adverts-updated.html

mark seven - 02/05/2008

Hmm. Classic no win. Either 'Opt-in' and you loose your business or Phorm wins and takes it from you anyway. Difficult problem in difficult times. Personally, I would sooner have the junk come through the letter-box than down the wire.

mark seven - 02/05/2008

Perhaps your best position would be to maintain the status quo by lobbying against new-comers that are likely to attract attention and stricter control. How about a DMA sponsored mail-shot to every address in the country outlining the dangers of Phorm and it's look-alikes?