News Focus: E-Marketing - ICO drives war on SMS law-breakers

by Noelle McElhatton, Direct Response 30-Apr-04

The Information Commissioner, Richard Thomas, has called on the direct marketing industry to act as 'whistle-blowers' on text messaging companies that are breaking new regulations on e-marketing.

Thomas told the DMA's fifth annual Data Protection Conference that text messaging has been largely responsible for a surge in complaints to the Information Commissioner's Office since the Privacy and Electronic Communications Regulations (see box) came into force in the UK last December.

"It's not easy dealing with the disreputable few, and we need help from the rest of you to blow the whistle, because we have limited powers on information collection," Thomas told delegates at the conference.

Thomas added that this should not involve "shopping your competitors, but if something is going on that is bringing this industry into disprepute, we need to know".

The Information Commission has received more than 300 complaints since the law came into force, but Thomas added that this level of complaints was "not the deluge we were expecting".

SMS industry experts said the complaints were likely to relate to spam that encourages consumers to dial premium rate lines to hear recorded prize information, but expressed surprise at the rise in complaints.

ICSTIS, the body responsible for policing phone information lines and pursuing telephone-related scams, has been judged highly successful in adjudicating on offending companies and fining them. Its clampdown has led to a recent drop in the number of complaints it receives.

"ICSTIS can cut off the source of a service in a day - it would take weeks for the Information Commissioner to pursue law-breakers," said Lars Becker, CEO of mobile marketing company Flytxt and a board member of the Mobile Marketing Association.

However, Becker added that law-breaking SMS companies were liable to re-enter the market quickly. "The players who are violating the law are well known, but there will be new ones cropping up as they can start up again after being shut down," he said.

Meanwhile, the Information Commission is talking with the Department of Trade & Industry to gain stronger and faster-acting injunctive powers.

See www.icstis.org.uk

FACT BOX ON ...

The Privacy and Electronic Communications Regulations 2003 - Since 11 December 2003 it is illegal to send unsolicited marketing messages via e-mail and SMS unless the recipient is an existing customer of the sender or has previously opted-in to receiving such messages.