New Direct Marketing Code

The Direct Marketing Association has launched a new Code of Practice which member companies will be expected to comply with by October.

The new Code comes at a time when complaints relating to direct marketing are at an all time low. The percentage of complaints made to the Data Protection Registrar have fallen from 49% in 1989 to 9% in 1996.

The revised Code puts into place more stringent rules for members to abide by. It was prepared in consultation with the direct marketing industry, the Office of Fair Trading and the Data Protection Registrar.

The most notable new provisions of the new Code include:

• Advertising to children – ads targeting minors must not promote unhealthy or otherwise behaviour, exploit a minor’s inexperience, make a direct appeal to purchase unless the product is affordable and of interest to minors. Lists containing children under the age of 14 cannot be rented without written permission from parents.

• Tobacco advertising – Members advertising or promoting tobacco products must comply with the DMA’s rules, the TMA’s voluntary agreement and the BCSASP Cigarette Code. Advertisers using direct marketing techniques must obtain prior consent from the individual targeted as well as a signed statement to the effect that the person is over eighteen and a smoker.

• Telephone marketing – the rules governing telemarketing are specific and extensive. They include the need to: identify the name of the advertiser at the beginning of a call, call within reasonable hours and not to call on national or religious holidays.

• Ban on ‘sugging’ and ‘dugging’ – the use of research or surveys as a guise to either sell products or collect data that will be used to sell products or services.

• Verbal offers must be confirmed in writing.

• Delivery performance – goods must be delivered within 30 days. If not fulfilled within this time customers must be informed and a full refund provided on request.

• Availability of goods – companies must take reasonable steps to ensure that they do not create demand that cannot be met.

• Charity linked promotions – offers claiming to benefit charities or good causes must name them and give the basis on which the contribution will be calculated.

• Presentations and events – offers of a free gift in return for attendance at a presentation or special event must make it clear if the purpose of the event is to sell a particular product or service.

• Network marketing – prohibits the use of schemes in which payments or other benefits to any participant are derived from the recruiting of participants rather than from sales.

• Gifts and prizes – the chances of receiving a particular gift or prize must not be unfairly represented.

• Right to withdraw – consumers have the right to return unwanted, undamaged goods without penalty within seven working days, and expect a refund within 30 days.

The DMA: 0171 321 2525