Thursday 15 July 2010

Anyone for T&Cs?


Luci Penn, Managing Director of REaD UK

Intermediary marketing companies such as small agencies, mailing houses and unlicensed bureau are an integral part of the marketing mix these days and they play an important role, providing valuable and effective services to end users at competitive rates. In the course of their work, they may procure data and other services such as data cleansing and list rental from a licensed reseller, through online solutions or directly from a data supplier. In order to acquire the aforementioned collateral the intermediary organisation will generally sign up to the terms and conditions of the data owner and will undertake to pass on obligations to end users.

With mounting pressure regarding data compliance and in response to consumer concerns regarding the safety of their personal data, some data owners are insisting that all end users must also sign up to their terms and conditions. The question of whether a national T&Cs scheme needs to become an industry standard is now the subject of debate. Sceptics believe that such a scheme would be beset with problems ranging from logistics to legal issues, not to mention that it has the potential to block sales, and the ramifications for small to medium marketing companies could be catastrophic. However, despite all of these possible pitfalls there is a strong argument that increasing the reach of T&Cs to end users would minimise the increased risk of data related litigation and government legislation.

While there is not currently a market appetite for such a move, one thing I am certain of is that the debate will continue. In the meantime, sceptics and supporters will have to keep a watchful eye on the situation to see if the current provisions remain adequate.

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