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UK's Silent Callers and Data Cheats Warned
The UK's regulators have been flexing muscles this week, with implications for market researchers and associated professions. Tougher fines are ahead for 'silent callers' and, separately, for misusers of consumer data; while Ofcom is likely to use mystery shopping to target misleading ISPs.
Silent calls - which can result from automated diallers in call centres getting more answered calls than staff are available to handle - are one of several bad telephone practices targeted by the government, which will increase the maximum fine for companies causing distress to consumers in this fashion from £50,000 to £2m.
Regulator Ofcom received more than 6,500 complaints about silent calls in 2009. The old maximum fine of £50,000 was imposed on a number of firms, including Barclaycard in 2008.
Kevin Brennan, Minister for Consumer Affairs, said the new fines were 'definitely more than a slap across the wrist for persistent offenders' and explained: 'Companies who make nuisance calls by abusing automated equipment should face the consequences... I hope our decision will be a catalyst for better business practice, increasing customer loyalty and reducing operational costs for handling complaints.'
Meanwhile the country's Information Commissioner, Christopher Graham, has hinted he could make early use of new powers to punish organisations breaking data protection laws, to set an example, according to www.marketingmagazine.co.uk . The former Director General of the Advertising Standards Authority was taking part in a Marketing Society debate on the use of data in marketing, and warned of the 'very sharp teeth' just grown by his office, which has new powers to fine up to £500,000 (previously £5,000) as of next week.
Graham said the marketing industry should 'grow up' and move on from a focus on the variety of consumer data available to it, to making responsible use of it and keeping the respect of consumers. His office is also consulting the IAB and DMA about the forthcoming launch of a code for personal information online.
In other news, Ofcom says Internet Service Providers (ISPs) are flaunting its code of conduct and misleading customers about high broadband speeds. In addition to underlining the need for clearer information, the regulator intends to carry out its own mystery shopping, and publish the results at 6-monthly intervals.
Web sites: www.ofcom.org.uk and www.ico.gov.uk .
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