Education
Data Protection for Direct Marketing
Wednesday, August 24 2005
Direct Marketing allows you to generate a specific response
from targeted groups of customers and can be a particularly
useful tool for small businesses.
However, before embarking on any direct marketing campaign
it is wise to plan ahead and ensure that your activities are
completely above board. Direct marketing that is sent to
unwilling recipients is not only wasteful, it is also a
violation of people's data protection rights.
Many businesses are now using their websites to collect
data and build their own databases of customer information
instead of purchasing from a third party. Depending on how
they use that information there may be an obligation to register
with the Data Protection Commission.
Do I need people's consent before contacting them with direct marketing?
As a general rule, people should not receive unsolicited
direct marketing of any nature unless they have indicated
that they consent, or at least that they do not object, to
such uses of their personal data. This general rule does not
apply to unaddressed flyers or letters, where there is no
use of an individual's personal data.
If direct marketing material is being targeted at someone who
does not wish to receive it, that in itself is a warning sign
that the direct marketing company, and/or the company from
which the personal details were sourced, may have deficient
data protection procedures in place.
Does consent have to be written, or can it be implied?
No, consent does not have to be in writing for direct marketing
purposes, and yes, consent can be implied in certain circumstances.
When a person gives clear verbal agreement that their personal
data can be used for direct marketing purposes, a direct marketer
is entitled to rely on that indication of consent. If a person
participates in a special promotion, which clearly involves the
use of personal data for certain clearly defined direct marketing
purposes, participation might be taken as implicit consent by the
individual.
The essential point is that the direct marketing company should
be clear and up-front about the use of people's personal data,
and not be underhanded or cavalier about obtaining people's consent.
Rather than give people an opt-out, can I just notify them that
their data will be used for direct marketing?
A person intending to use personal data for direct marketing
purposes is obliged to offer a cost free opt-out facility.
Failure to offer a cost-free opt-out facility upon first mailing
will constitute a contravention of the Data Protection Acts.
Is an "opt-out" sufficient, or do I need an "opt-in" consent clause?
An "opt-out" box invites a person to indicate (usually by ticking
a box) if they object to receiving direct marketing material. Failure
by the person to tick the box, it can be argued, may be taken as an
indication of their "passive consent" to receive direct marketing
material. An "opt-in" box invites a person to indicate if they would
like to receive such material; unless they demonstrate "active consent"
by ticking the box, their personal data cannot be used for direct
marketing purposes.
Provided an "opt-out" box is clearly visible and explicit in its
wording, the Data Protection Commissioner is prepared to accept
that the individual has given their "passive consent" by not ticking
the box, provided the personal data in question, and the uses to which
the data will be put, are not of a sensitive nature. However, the
Commissioner advocates the use of positive "opt-in" boxes as a
matter of good practice.
Do people have the right to be taken off my company's mailing list?
Yes. Under section 2(7) of the Data Protection Acts, if you are
holding personal data for direct marketing purposes, people may
write to you requesting that you stop using their data for this
purpose. You must comply by erasing the data, unless you still
need to retain the data for some purpose other than direct marketing.
Useful Resources
This information in this article was kindly provided by the Data
Protection Commission of Ireland. For more details on your rights
and obligations under the Data Protection Acts please visit their website at
www.dataprotection.ieGuide to Business to Business Direct Marketing
Successful Business to Business Direct Marketing.pdf
This excellent guide was created by the Direct Marketing
Association in the UK. It gives excellent advice and tips for
SME's looking to create a Direct Marketing campaign.
You can also find additional best practice documents at their website
www.dma.org.uk/content/Pro-BestPractice.asp
- a great source of information.
Direct Marketing in Ireland
For information specific to Ireland you can visit the Irish
Direct Marketing Association website at
www.idma.ie