LIVE FROM LONDON: By Definition, Data Compliance Difficult

Achieving compliance with the European Union’s Data Protection Directive by the October deadline would be a whole lot easier for many companies if the terminology was clearly defined.

The Data Protection Directive was passed into law in October 1998. Companies with existing databases were given until October 2001 to achieve compliance with the new standards; newly created or substantially altered files must be in compliance immediately.

Jo Whyte, director of legal and public affairs for the U.K. Direct Marketing Association, noted yesterday that there is confusion over what is covered and what is not covered in the act, which legislates all aspects of consumer data, from collection to creating mailings to “anything you do with data before taking it of the system.”

For example, the directive specifies no use automated calling system without prior consumer consent. The definition of that, however, is fuzzy, said Whyte. The general understanding is that while predictive dialers are okay, companies can not make unsolicited calls using prerecorded systems, nor contact those who have opted out through the Telephone Preference System or otherwise.

But the U.K.’s government-appointed Data Protection Commissioner lumps text messaging via mobile phones into automated calling — a potentially huge problem for DMers given the tremendous penetration of wireless devices in the U.K., said Whyte.

In fact, she said, no one is really sure if text messaging systems – called small messaging systems here–or e-mail for that matter is even covered by the directive. Some people lump both under telecommunications, which would be regulated; others contend they are not covered at all.

Whyte told DIRECT Newsline she felt most DMA members were already in compliance when the directive was passed in 1998, because they were in compliance with 1984’s similar legislation, the Data Protection Act. Of the new regulations, she thought the most difficult to adjust to would be the consumer’s right to opt out of having their data used for direct marketing purposes at any time.

While the Data Protection Directive has streamlined data regulations and simplified cross border marketing, there are still exceptions, warned Alastair Tempest, director general of FEDMA, the Federation of European Direct Marketing Associations. For example, in Italy you must have consent to collect any data for direct marketing purposes. This of course had the expected affect on the country’s economy — DM expenditures immediately dropped by one-third there when the law was passed in 1996.

Other laws affecting DM vary from country to country, said Tempest. In Belgium, a “cooling period” law mandates that catalogers and other direct sellers must wait to cash money received until they are reasonably sure the consumer has received their products. And in Portugal, marketers must wait another 10 days after consumer receipt of product to cash checks or bill credit cards.

“There are still differences of opinion in the EU on how you apply legislation,” he said.

Whyte and Tempest addressed a delegation of U.S. DMers in London traveling as part of the U.S. DMA’s first trade mission to the United Kingdom and France. Charles A. Prescott, vice president, international business development and government affairs, said six companies participated in the trip, which will become an annual event timed to coincide with the International Direct Marketing Fair here. The DMA’s next trade mission-to the Netherlands and Germany for the DIMA conference-is planned for early September.

The IDMF will be held this Tuesday, Wednesday and Thursday at the new ExCel exhibition center.