Marketing Codes of Practice

BSBMKG501B/502B

What is a Code of Practice (COP)? An approved code of practice

(COP) provides practical guidance to meeting legislative obligations

Where do COP’s come from?

Codes of

Practice

Consultative experts

Industry regulators

Legislation

Industry members

Special interest groups

Why have a Code of Practice (COP)? Codes of practice are developed to:

Assist organisations to meet their legal obligations

Establish an industry standard for the way organisations operate and behave

Create benchmarks of best practice for organisations to implement into procedures

Provide guidelines for organisations for areas between legislative requirements

Protect customers

What COP’s relate to marketing Direct Marketing Code of Practice -

ADMA DMA’s Guidelines for Ethical

Business Practice Australian eMarketing Code of

Practice The Australian Guidelines for

Electronic Commerce Commercial Television Industry Code

of Practice

Direct Marketing Code of Practice

Australian Direct Marketing Association

Direct Marketing Code of Practice The Code sets out specific standards of conduct for

participants in the direct marketing industry in relation to individuals and consumers and serves as a benchmark in settling disputes.

The requirements of the Code are based on commonsense and are matters of fairness and honesty.

The Code not only promotes fair-trading but also is intended to serve as a point of reference for Members to ensure they comply with all applicable state and commonwealth laws

Why is the code necessary? Direct marketing is expanding

rapidly. More consumers are choosing to

purchase goods and services through direct response channels and more businesses are using these media to meet this increasing demand.

Why is the code necessary? Because they operate at a distance

rather than face-to-face with consumers, direct marketing organisations place a greater emphasis on building consumer confidence and trust.

This is especially true in respect of their handling of personal information such as name, address and other identifying information

Why is the code necessary? The future expansion of direct

marketing depends on the players conducting their business in a fair, honest and ethical manner, both in dealings with other businesses and consumers.

Only by doing so can the reputation of the industry be enhanced so that consumer demand will continue to grow.

Features of the ADMA COP Key features of the current Code include

Privacy protection Compulsory Do Not Mail / Do Not Call servic

e made

Mandatory "Cooling Off" period Compliance requirement extension to suppli

ers and non-members

Telemarketing Standards of Practice E-Commerce Standards Code Authority

Privacy protection

An integral part of the Code is the National Privacy Principles (NPP’s).

The NPP's give consumers some control over their personal information by limiting the amount of information that companies can collect about individuals.

Privacy protection Marketers are required to inform consumers

who is collecting the information, how the company can be contacted and the intended usage of the personal information, including whether it will be disclosed to third parties.

Consumers must be given the opportunity opt-out of future direct marketing approaches and block transfer of their contact details to any other marketer.

Compulsory Do Not Mail / Do Not Call service Under the Code, use of the ADMA Do Not Mail

and Do Not Call Consumer Preference Services are mandatory for all ADMA members.

This requires members to purge from marketing campaigns the names and contact details of consumers who have registered for the service.

This ensures that individuals that have indicated they do not wish to be approached are not contacted.

Mandatory "Cooling Off" period When supplying goods or services at

a distance, ADMA members must provide a seven day "cooling off" period during which a customer is entitled to cancel the contract with the direct marketer.

ADMA members must ensure the customer's right to cancel the contract is specified in any contractual documents.

Compliance requirement extension to suppliers and non-members

Members are responsible for the conduct of their agents, subcontractors and suppliers.

This broadens the scope of the Code beyond the membership of ADMA, thus raising standards throughout the direct marketing industry.

Telemarketing Standards of Practice Direct marketers who use the

telephone must ensure they identify themselves to the person they are calling and state the purpose of the call.

They must also ensure their name address and telephone number is listed in an accessible directory.

Telemarketing Standards of Practice They must also:

on request, provide the name of a person responsible for handling customer inquiries,

offer to call the person back if it appears that a customer has been interrupted at an inconvenient time,

provide the customer with a clear opportunity to accept or decline the offer,

Telemarketing Standards of Practice

ensure that all telephone calls to a customer are made at times that comply with specific legislation and in all other instances are made between the hours of 9am and 8pm and are not made on the following public holidays: Christmas Day; Good Friday; and Easter Sunday,

release the customer's telephone line within five seconds of their hanging up or otherwise indicating they require the line to be released.

Telemarketing Standards of Practice In addition, they must not represent

that they are undertaking market research where the purpose of the call is to sell goods or services, or contact a customer more than once in any 30 day period for the same or similar campaign without that customer's prior consent.

E-Commerce Standards

ADMA has adopted OECD Guidelines for E-commerce in its Code of Practice.

OECD = Organisation for Economic Co-operation and Development

E-Commerce Standards

These international best practices cover issues such as providing clear and unambiguous information about the identity of the businesses and the goods or services they offer, verifiable contracts, effective consumer complaint handling and security/authentication measures.

Code Authority A key feature of ADMA's Code of Practice is the

establishment of an independent complaints body.

Made up of an independent Chair and equal number of consumer and industry representatives.

The Code Authority investigates unresolved consumer complaints about members and non-member companies.

Code Authority

The Code Authority can apply a range of sanctions and recommend expulsion of an offending member.

The commercial penalty of being expelled from ADMA is severe since the accompanying negative publicity is likely to restrict the ability of an organisation to operate in the market.

DMA Guidelines for Ethical Business Practice Direct marketing Association

What is the purpose of the Guideline? The Direct Marketing Association's

Guidelines for Ethical Business Practice are intended to provide individuals and organizations involved in direct marketing in all media with generally accepted principles of conduct

Why have the Guideline?

These guidelines reflect DMA's long-standing policy of high levels of ethics and the responsibility of the Association, its members, and all marketers to maintain consumer and community relationships that are based on fair and ethical principles.

Why have the Guideline?

The Guidelines for Ethical Business Practice are used by DMA's Committee on Ethical Business Practice, an industry peer review committee, as the standard to which direct marketing promotions that are the subject of complaint to DMA are compared.

Principles of the guidelines A DMA member

Is committed to its customers' satisfaction Clearly, honestly, and accurately

represents its products, services, terms and conditions

Delivers its products and services as represented

Communicates in a respectful and courteous manner

Principles of the guidelines

Responds to inquiries and complaints in a constructive, timely way

Maintains appropriate security policies and practices to safeguard information

Provides information on its policies about the transfer of personally identifiable information for marketing purposes

Honours requests not to have personally identifiable information transferred for marketing purposes

Principles of the guidelines

Honours requests not to receive future solicitations from its organization

Follows the spirit and letter of the law as well as DMA's Guidelines for Ethical Business Practice

Australian eMarketing Code of Practice

What is the eMarketing COP? The eMarketing Code of Practice has

been developed to establish comprehensive industry rules and guidelines for the sending of commercial electronic messages with an Australian link in compliance with the Spam Act 2003.

The Code has been developed under Section 112(1A) of the Telecommunications Act 1997.

Why have the code? To establish appropriate industry behaviour in

relation to the sending of commercial electronic messages and the gaining of consent;

To reduce the incidence of unsolicited commercial messages sent by members of the Australian eMarketing industry;

To create benchmarks relating to commercial electronic messages and procedures for organisations to follow;

Why have the code? To provide clear and comprehensive

identification of the senders and/or authorisers of commercial electronic messages;

To ensure that there is a clear and transparent means of unsubscribing to and withdrawing consent to receive future messages;

To establish efficient and fair method of having complaints handled by the eMarketing industry.

Who does the code apply to? The Code automatically applies to all

persons, including individuals and organisations, undertaking an eMarketing activity.

The Code automatically applies to activities (whether an eMarketing industry member is a signatory or not)

What are eMarketing activities? Activities undertaken by individuals

or organisations to market, promote or advertise their own goods and services where sending or causing to send commercial electronic communications is their sole or principal means of marketing, promoting or advertising their own goods or services.

What are eMarketing activities? Activities undertaken by individuals

or organisations who by contract or other arrangement with a person market, advertise or promote the goods or services (including land and interests in land and business and investment opportunities) of that person by sending commercial electronic communications or causing them to be sent.

What are eMarketing activities? Activities undertaken by individuals or

organisations who by contract or other arrangement with a person market, advertise or promote that person as a supplier, prospective supplier, provider or prospective provider of goods or services (including land and interests in land and business and investment opportunities) by sending commercial electronic communications or causing them to be sent.

The Australian Guidelines for Electronic Commerce

What is the purpose of the Guideline? The Guidelines seek to enhance

consumer confidence in B2C electronic commerce by providing guidance to businesses on: fair business practices; accessibility and disability access; advertising and marketing; engaging with minors;

What is the purpose of the Guideline?

disclosure of a business’s identity and location;

disclosure of a contract’s terms and conditions;

the implementation of mechanisms for concluding contracts;

adopting privacy principles; using and disclosing information about

payment, security and authentication mechanisms;

What is the purpose of the Guideline?

the establishment of fair and effective procedures for handling complaints and resolving disputes;

the law and forum for the resolution of contractual disputes

Who does the guidelines apply to? The Guidelines have been developed for

traders located in Australia dealing with both Australian and overseas consumers.

Traders located outside Australia who are dealing with Australian consumers are also encouraged to follow the Guidelines. Ideally, industry groups will encourage their members to follow the Guidelines.

Commercial Television Industry Code of Practice

Why have the code?

The Code is intended to: regulate the content of commercial

television in accordance with current community standards;

ensure that viewers are assisted in making informed choices about their own and their children’s television viewing;

Why have the code?

provide uniform, speedy and effective procedures for the handling of viewer complaints about matters covered by the Code;

be subject to periodic public review of its relevance and effectiveness.

How do television COP’s relate to marketing? Television advertisers are expected to ensure that

their commercials comply with the Advertiser Code of Ethics and the Code for Advertising and Marketing Communications to Children

The Code sets out restrictions on the amount of advertising and other non-program matter that stations may carry at different times of the day

The Code sets out placement restrictions on certain types of television advertising which are recognised as being sensitive