http://www.adma.com.au/adma/live/me.get?ADMA1.pages.show&document&421You can get to it from http://www.adma.com.au/ via the News and Information page.
I have removed the header and footer and left the main content of the file, without it being in a table and without the no cache pragma.
Note that some of the material is misleading - such as some of the consumer organisations who have supposedly been consulted in the formation of this code.
Back to the main telemarketing section of the First Principles site.
Code of Practive
DIRECT MARKETERS ADOPT TOUGH CONSUMER PROTECTION REGIME
SYDNEY – Direct marketers must give customers a seven day cooling-off period for purchases, remove their names from marketing campaigns on request, and respect their privacy under compulsory measures announced today by the Australian Direct Marketing Association (ADMA).
Compliance with the new regime will be overseen by an independent Code Authority containing equal numbers of industry and independent/consumer representatives. The Authority will investigate unresolved complaints and adjudicate or mediate. Its sanctions could result in the public expulsion of an offending member from the Association.
"Consumers now have a clear choice between organisations that are ‘Direct Marketing Code Compliant’ and the rest," said Rob Edwards, CEO of ADMA. "When they shop from home, they can also be assured their contact details or any other personal information used to present an offer will be handled responsibly. And if they have an unresolved complaint against an ADMA member, an independent process exists to deal with it."
The new measures are outlined in ADMA’s new Code of Practice for members and are the fruit of three years of consultations with government, consumer and industry groups about how best to regulate the rapidly growing direct marketing sector. "Direct marketing is growing by 14 per cent a year with more consumers choosing to purchase goods and services by mail-order, telephone, the Internet or direct response television," said Mr. Edwards. "We want to enhance their peace of mind by giving them an outlet if they feel they have been treated unfairly."
Only ADMA members will have the right to bear the "Direct Marketing Code Compliant" seal. An Awareness Campaign to be launched in the new year with the support of member publishers, cataloguers and mailers will help people identify Direct Marketing Code Compliant companies.
The fair trading and telemarketing measures were developed by industry, government and consumer organisations under the leadership of the Australian Consumer and Competition Commission. The privacy standards in the Code are drawn from the Federal Privacy Commissioner’s National Principles for the Fair Handling of Personal Information. ACCC Chairman Allan Fels and Federal Privacy Commissioner Moira Scollay participated in the launch.
ADMA is Australia’s pre-eminent marketing association representing over 400 organisations including financial institutions, publishers, catalogue and mail-order traders, airlines and travel service providers, charities, telecommunications services and a host of other DM users and suppliers. Direct marketing was responsible for over $7.2 billion in advertising media spending in 1997.
Scott McClellan, Communications Director
Tel: (02) 9368-0366 Mobile: (04) 0770-4748
An integral part of the Code is the introduction of internationally recognised consumer data protection measures set down by the Federal Privacy Commissioner. The new measures give consumers control over their personal information by limiting collection of customer information and requiring marketers to tell consumers who they are, how to get in touch with them and what they intend to do with personal information. Consumers will also be given an opportunity to block the transfer of their contact details to any other marketer.
Do Not Mail/Do Not Call service made compulsory
Under the new Code, ADMA’s Do Not Mail and Do Not Call Consumer Preference Services will become compulsory for all ADMA members. This means members must
purge from marketing campaigns the names and contact details of consumers who have registered for the service. "This gives consumers an off switch if they want to use it," said ADMA CEO Rob Edwards. "But it’s also good for our members. Responsible direct marketers don’t want to contact people who don’t want to be approached. It’s a waste of time, energy and resources that could be more effectively put elsewhere." To register for this free service, consumers simply call 1-800 646 664.
"Cooling Off" period introduced
Another new requirement is a seven day "cooling off" period during which a customer is entitled to cancel a contract with a direct marketer. Direct marketers will have to ensure the customer’s right to cancel the contract is specified in any contractual documents.
Extends to suppliers and non-members
Members will be held responsible for the conduct of their agents, subcontractors and suppliers. This will broaden the scope of the Code beyond the membership of ADMA.
Telemarketing Standards of Practice
Direct marketers who use the telephone must now 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 are listed. They must also:
The Association has adopted the latest draft OECD guidelines for e-commerce in its new Code of Practice. 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.
Tough measures require ACCC authorisation
ADMA stands to become the first national marketing association to have its Code of Practice fully authorised by the Australian Competition and Consumer Commission (ACCC). "This will greatly strengthen the role of ADMA as the regulatory body for direct marketing since complaints about ADMA members will be dealt with through a fully independent adjudication process," said Mr. Edwards. The commercial penalty of being expelled from ADMA is severe, since sanctions imposed under the Code are likely to restrict the ability of an organisation to operate in the market. These "anti-competitive" elements of the Code must therefore be sanctioned by the ACCC.
In its draft determination issued on October 7, the ACCC said the public benefit of the consumer protection measures would outweigh any anti-competitive detriment. "The Commission is of the view that these core rules have the potential to give rise to public benefit through the provision of better information to consumers about their rights and about their purchases, by protecting consumers from unreasonably intrusive forms of direct marketing and their right to privacy and by improving the quality and consistency of services which consumers receive from direct marketers."
Code Administrative Authority
A key feature of ADMA’s new Code of Practice is the establishment of an independent complaints body. Led by a chairperson from outside the direct marketing industry who will be joined by consumer and industry representatives, this impartial tribunal or Code Administrative Authority, will investigate unresolved consumer complaints about members as well as non-member companies. Members will also be required to have their own internal customer complaints-handling procedures in place.
Chairperson of the new Code Authority is Holly Raiche, a solicitor and communications consultant for the Communications Law Centre and the Corporate Policy Section of the Australian Broadcasting Corporation. Ms. Raiche is a member of the editorial board of the newsletter Privacy Law and Policy Reporter where she has published numerous articles. She also serves on the Australian Communications Industry Forum (ACIF)’s Working Committee on Complaints Handling and has worked on numerous committees for Telecom Australia’s Consumer Council as well as the Privacy and Consumer Advisory Committees of AUSTEL.
The Code of Practice is the product of three years of consultations with various government, consumer and industry groups as well as Association members. The fair trading and telemarketing provisions have been endorsed by all federal and state ministers for consumer affairs. The privacy protection measures are drawn from the National Principles for the Fair Handling of Personal Information. The e-commerce standards are based on the latest draft OECD guidelines for electronic commerce.
"We have consulted widely and adopted world best practices," said Mr. Edwards. "The next step is to get on with the job of implementing the Code and gaining the widest possible compliance. To do that, we will be harnessing the considerable resources of our member publishers, cataloguers, mail-order traders and others to build awareness of the ADMA seal. Consumers will know when they see this symbol that they are dealing with a reputable company that has agreed to abide by the Code of Practice."
The Code of Practice takes effect immediately; however, members have
until July 1, 1999 to make any changes to their businesses to ensure they
are fully in compliance.
SPEAKING NOTES OF ROB EDWARDS
Good morning, ladies and gentlemen. My name is Rob Edwards and I am CEO of the Australian Direct Marketing Association.
As Peter has said, we offer goods and services through a variety of media – the mail, telephone, Internet, newspapers and magazines, television and radio. Simply, any time you receive an offer of goods or services through some form of distance communication – whether it’s your bank offering a new financial planning service over the phone, a catalogue site you found while surfing the net, or a wine club sending you a mailing, it’s all direct marketing.
Direct marketing media spending jumped 14 per cent last year to over 7 billion and we now employ over 523,000 Australians. People are shopping from home in greater numbers as our population ages, as our lifestyles get busier, with more two-income households, more single-parent families – there are powerful social forces behind the trend to home shopping. Not to mention the rapid development of technologies like the Internet that put the consumer in control.
Marketers have responded by bringing the store to people in their homes. To be effective, they know consumers have to feel confident in making these purchase decisions at a distance. They want peace of mind. And that brings me to the point of today’s event.
What we are announcing is a basket of consumer protection measures that, taken as a whole, dramatically improve the level of consumer assurance in home shopping. Let me run through them one at a time:
Firstly, we have introduced some important changes to the fair trading elements in our Code by adopting the Direct Marketing Model Code of Practice of the Ministerial Council on Consumer Affairs. Consumers will now have a seven day cooling off period for their purchases. From the time they receive goods, they will have seven days to change their mind and return them – no questions asked. And direct marketers must now ensure the customer’s right to cancel a contract is specifically mentioned or prominently displayed in any contractual documentation. In addition, they must:
The second integral part of the Code is the introduction of internationally-recognised data protection measures which our members must abide by.
These measures were set down by the federal privacy commissioner last February after lengthy consultation with industry and consumer groups. We have now adopted them in our new Code. Earlier I mentioned we have the Privacy Commissioner, Moira Scollay, here with us this morning. And I understand Moira has agreed to stay after the news conference and answer any questions you might wish to put to her directly about the national privacy principles and how they fit into this Code.
Briefly, they give consumers control over their personal information in a number of ways:
Now a word about e-commerce, if I may. The first thing to point out is that everything I’ve talked about so far applies no matter what medium the marketer uses. For example, the requirement to provide an opt out opportunity applies equally to e-mail as it does to traditional mail or telephone.
But we also recognise that e-commerce needs some special treatment because it is borderless. That is why we have adopted the latest draft OECD guidelines for e-commerce. These international best practices cover issues such as providing clear information about the identity of the businesses and the goods or services they offer, verifiable contracts, effective consumer complaint handling and special online security measures.
Thirdly, under the new Code, ADMA’s Do Not Mail/Do Not Call consumer preference services will become compulsory for all ADMA members. This means members must purge from marketing campaigns the names and contact details of consumers who have registered.
What’s good about this? It gives consumers an off switch if they want to use it. But it’s also good for our members. Responsible direct marketers don’t want to contact people who don’t want to be approached this way. It’s a waste of time, effort and resources that can be put more effectively elsewhere.
The next element covers direct marketers who use the telephone to contact customers. They must now 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 are listed. They must also:
So those are the key elements of the Code. How do we plan to enforce them?
We have created a Code Authority to monitor industry compliance. This is an impartial panel with an independent chairperson from outside the industry who will listen to unresolved consumer complaints. They will have the power to adjudicate or mediate as they see fit.
Code members will have the authority to lay down the law in the direct marketing industry – they can recommend sanctions up to and including expulsion of members. They can also withhold membership from a non-member company.
These sanctions carry a serious marketplace penalty, so we have asked the ACCC to rule that the public benefit of these sanctions outweighs any anti-competitive detriment.
Code Authority members are drawn in equal numbers from the consumer sector and industry. They bring extensive experience to the table -- in direct marketing, law, mediation, telecommunications, data protection and dispute resolution.
The chairperson, as previously mentioned, is Holly Raiche. Holly is a solictor who also does work for the communications law centre and the corporate policy section of the Australian broadcasting corporation.
She is a member of the editorial board of the newsletter privacy law and policy reporter and a member of the Australian communications industry forum’s working committee on complaints handling.
Let me conclude by saying consumers are the biggest winners today. They will now have a clear choice to do business with Direct Marketing Code Compliant companies. When they do, they will have peace of mind that, should they have a problem with their purchase and they can’t resolve it with the direct marketer, an independent process is there to help them. And finally, they get back control of their personal information. They will get the chance opt out of receiving direct marketing offers if they wish, and they can have their names removed from marketing campaigns at a touch of the dial.
To raise help consumers recognise Direct Marketing Code Compliant companies, we will be launching an advertising campaign in the coming months with the help of member publishers, cataloguers, mail order traders and others. We have brought along some of the creative concepts we are currently looking at for the campaign.
And that about sums up where ADMA is headed with our new Code of practice.
And now I will turn the floor over to Professor Allan Fels.
Founded in 1966, the Australian Direct Marketing Association is the country’s pre-eminent marketing industry organisation, representing over 400 corporate members engaged in direct marketing related activities. ADMA’s mission is to create an environment that fosters the growth of responsible direct marketing in Australia.
The Association’s members bring consumers the convenience of home shopping. Many are also involved in business-to-business direct response. They include publishers, financial institutions, charities, catalogue and mail-order traders, airlines, electronic retailers and automobile manufacturers as well as industry suppliers such as printers, advertising agencies, call centres and list and database specialists. Together, they are responsible for 80 per cent of the $7.2 billion annual direct marketing spending in Australia.
As the self-regulatory body for the industry, ADMA’s key objective is to increase consumer confidence in direct marketing by responding to consumer concerns about issues such as data protection and fair trading. Accordingly, members must abide by a Code of Practice that requires honesty, fairness and data protection in customer dealings. ADMA also provides a consumer complaints-handling service and a Do Not Mail/Do Not Call program whereby people can have their names removed from marketing lists.
As the industry’s leading advocate on legislative and public issues management, the Association seeks to promote and protect the interests of its members. As a result, it devotes a large portion of its resources to government, public and media relations.
Increasing the level of professionalism in the industry remains a cornerstone of the mandate. ADMA’s Certificate in Direct Marketing is widely recognized as a platform from which to launch a career in the field. Two major annual conventions, seminars, sponsored conferences and branch events featuring top speakers round out the portfolio of professional development opportunities facilitated by the Association.
To encourage excellence in the field, ADMA hosts two prestigious award nights – the Australian Direct Marketing Awards, which recognise the best direct marketing campaigns of the year and the new Awards of Excellence, which spotlight the achievements of talented individuals.
Headquartered in Sydney, ADMA is a national non-profit organization
with branches in New South Wales, Victoria, Western Australia and Queensland.
Policies are created by a board of directors elected from the membership.
Programs are administered by a full-time professional staff.
SAMPLE MEMBERSHIP LIST
|ACP Publishing Pty Ltd||International Masters Publishers|
|A G C||John Fairfax Publications|
|Ansett Australia||Loyalty Pacific Pty Ltd|
|AOL Bertelsmann||MasterCard International|
|Australia Post||Morgan & Banks Ltd|
|AVIS Australia||MOS Data Assembly Specialists Pty Ltd|
|Carr Clark Rapp Collins||National Australia Bank|
|Cellarmaster Wines Pty Ltd||National Photographic Marketing Pty Ltd|
|Clemenger Direct Pty Ltd||NRMA|
|Cohn & Wells||Optus Communications|
|Coles Myer Ltd||Permail Pty Ltd|
|Colonial Limited||Reader's Digest (Australia) Pty Ltd|
|Commonwealth Bank||Salmat Pty Ltd|
|Conrad Jupiters Treasury Casino||Simon Richards Group Pty Ltd|
|Damart Thermolactyl||St.George Bank|
|Doubleday Australia Pty Ltd||Star City Casino|
|FOXTEL Management Pty Ltd||Streetfile|
|Fuji Xerox Australia||Telemasters Pty Ltd|
|G E Capital Finance||Telstra Corporation|
|George Patterson Bates||The Direct Bond Pty Ltd|
|Harlequin Enterprises (Australia) Pty Ltd||Time Inc. Magazines|
|IBM Australia Limited||Time Life Australia Pty Ltd|
|Integral Energy||Viking Office Products|
|Westpac Banking Corporation|
|Zurich Australia Ltd|
ADMA spent over three years consulting with consumer, industry and government organisations regarding how best to regulate the direct marketing industry. The organisations ADMA worked with are listed below.
|Australian Chamber of Commerce
Australian Consumers’ Association
Privacy Charter Council
Investment & Financial Services Association
Coles Myer Ltd
Consumers’ Federation of Australia
Department of Communication and the Arts
Federal Bureau of Consumer Affairs
NSW Department of Fair Trading
Office of Consumer and Business Affairs, SA
Office of Fair Trading and Business Affairs, VIC
|Australian Retailers’ Association
Insurance Council of Australia
Australian Competition and Consumer Commission
ACT Consumer Affairs Bureau
Australian Banker's Association
|Office of the Privacy Commissioner
Australian Telecommunications Users Group
Communications Law Centre
Department of Communications and the Arts
Small Enterprise Telecommunications Centre Ltd.
Telecommunications Industry Ombudsman
Direct marketing now represents almost 49% of all media spending.(Source: CEASA)
Direct marketing is growing at a rate of 14% a year. (Source: CEASA)
In 1997 direct marketers spent $7.2 billion in advertising media. (Source: CEASA)
The telemarketing industry is currently growing at a rate of 25% a year (Source: ACA)
Between 1996-97 there were 18,000 new business sites on the Internet.(Source: CEASA)
Australians made 1.1 million online Internet purchases in 12 months from May 97 to May 98 (Source: Australian Bureau of Statistics)
In 1997 direct marketers and their suppliers employed 523,574 Australians, an increase of seven per cent over 1996. (Source: CEASA)
Over the past 12 months (Aug 97 to Aug 98) some 3,275 direct mail campaigns aimed at consumers were recorded. (Source: Who’s Mailing What)
Over the past 12 months (Aug 97 to Aug 98) some 1,565 business to business direct mail campaigns were recorded. (Source: Who’s Mailing What)
There are some 350 consumer lists commercially available in Australia.(Source: List of Lists – Bookman Press)
There are over 600 business to business lists commercially available in Australia.(Source: List of Lists – Bookman Press)
QUESTIONS AND ANSWERS
1. Why did ADMA create this new Code of Practice?
ADMA members want consumers to have confidence in shopping from home. Direct marketing is growing at a rate of 14 per cent a year with more people choosing to purchase goods and services by such methods as mail-order, telephone and the Internet.
As a result, we are becoming more visible as an industry. This has focused attention on how businesses conduct themselves.
The Code gives consumers the choice to do business with Code Compliant companies. When they do business with an ADMA member company, they are protected against false or misleading claims and by ensuring they have access to the product and service information they need to make informed choices. And when they shop from home, they can be assured their contact details and other personal information will be handled responsibly.
2. Why is the Code necessary?
The future expansion of the industry depends on consumer confidence in how direct marketers conduct their business. Because by definition direct marketers operate at a distance, there is a greater onus on them to be seen to be fair, honest and ethical in all their dealings.
3. What are the benefits to consumers in this Code?
In three words, peace of mind. They will know that when they do business with an ADMA member company, they are protected against false or misleading claims and will have access to the product and service information they need to make informed choices. They will also have seven days to cancel purchases, no questions asked.
And when they shop from home, they can be assured their contact details and other personal information will be handled responsibly. Our members must now remove their names from marketing campaigns upon request and respect their privacy under the compulsory measures we’ve announced today.
If they have a problem with a purchase made from an ADMA member, there is now an independent process to deal with the complaint, namely a Code Authority who will investigate unresolved consumer complaints.
4. Who has been involved in getting this Code off the ground?
The Code of Practice is the result of over three years of consultations with members, government, consumer and industry groups. The fair trading and telemarketing provisions have been endorsed by all federal and state ministers of consumer affairs. The privacy protection measures are drawn from the National Principles for the Fair Handling of Personal Information and the e-commerce standards are based on the latest draft OECD guidelines for electronic commerce.
We have consulted widely and adopted world’s best practices. The next step is to implement the Code, gain the widest possible compliance, and educate consumers in how to ensure they are dealing with a code compliant direct marketer.
5. What do your members think of this new Code?
They are very supportive. They know that an increase in consumer confidence in direct marketing will have a positive effect on their bottom line. Some have even said they see it as a competitive advantage since consumers are going to want to do business with companies they feel they can trust.
6. How can the public tell if a company is Code Compliant or not?
ADMA members will be entitled to display a Direct Marketing Code Compliant seal in their customer communications. Soon we will be launching a campaign with the help of member publishers, mail order traders and others to boost awareness of the seal.
7. What is the role of the Code Authority?
The Code Authority is an independent complaints handling body. Its job is to see that direct marketers comply with the Code and investigate any unresolved consumer complaints. It will be led by a chairperson from outside the direct marketing industry who will be joined by consumer and industry representatives.
In short, the Code Authority offers consumers an impartial process to deal with the complaint.
8. How is the impartiality of the Code Authority guaranteed?
The Code Authority contains equal numbers of industry and independent/consumer reps who will be fair and impartial in their dealings with direct marketers and the public. Industry reps have been selected for their stature within the direct marketing community as being willing to uphold high standards of conduct among their peers. The chairperson must also be from outside the direct marketing industry.
9. Who must abide by the Code?
The Code binds all ADMA members as well as their suppliers, agents or subcontractors. Members will be urged to use suppliers who are also Direct Marketing Code Compliant.
10. What about non-members?
If we become aware of a consumer complaint against a non-member direct marketer, ADMA will inform the organisation about the Code and attempt to seek compliance. If the complaint remains unresolved, we will refer it to the appropriate state or federal authorities. The Code Authority can also recommend that the organisation be denied membership in ADMA until such time as all complaints have been resolved.
The Code gives consumers a clear choice between doing business with organisations that are Code compliant and the rest. The easiest way for consumers to ensure they will be satisfied with their purchase is to do business with a direct marketing code compliant company.
11. What kind of penalties or sanctions do members face if they breach the Code?
The Code Authority can recommend any penalties or sanctions that befit the circumstances up to and including expulsion of the offending member from the Association. The commercial penalty of being expelled from ADMA is severe since sanctions imposed under the Code are likely to restrict the ability of an organisation to operate in the marketplace.
12. How many times can a member offend before they are kicked out?
If the member has breached the Code more than twice in a 12 month period, the Code Authority may recommend that membership be revoked.
13. Isn’t it true that that most of the problems in the industry come from non-members?
As in any other industry there will always be bad players. It is every consumer’s responsibility to take steps to ensure they are dealing with a legitimate organisation. The new Code of Practice and Code Authority will help consumers recognise responsible direct marketers they can do business with in confidence. If a consumer chooses to do business with someone who isn’t Direct Marketing Code Compliant, then it’s ‘buyer beware’.
14. How does the Code impact on the Internet?
The first thing to point out is that the fair trading and privacy protection measures in the Code apply no matter what medium the marketer uses. For example, the requirement to provide an opt out opportunity applies equally to e-mail as it does to traditional mail or telephone.
But we also recognise that e-commerce needs some special treatment because it is borderless. That is why we have adopted the latest draft OECD guidelines for e-commerce. 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 and authentication measures.
15. Why are you doing this now?
The new Code has actually been at the top of ADMA’s agenda for the past three years. We’ve been consulting with industry, government and consumer groups about the best way to self-regulate because we want to increase consumer confidence in home shopping. We are confident we’ve come up with the best way to do it.
16. The Advertising Standards Council publishes names of those they’ve expelled. Will you do the same?
17. Isn’t this a bit of a paper tiger exercise?
These are very tough measures. This is the first time an association of this kind has developed a fully independent complaints handling process. The commercial penalties associated with sanctions under this are severe enough to warrant authorisation by the Australian Consumer and Competition Commission. We have applied for such authorisation.
18. Why are you going ahead with your announcement before getting authorisation from the ACCC?
The authorisation we are seeking from the ACCC is for certain elements of the Code that could be deemed anti-competitive. These include the ability to prevent an organisation known to have unresolved consumer complaints from joining the Association; also, the ability to expel a member for breach of the Code. Since these sanctions carry a potentially serious marketplace penalty, we have asked the ACCC to rule that the public benefit of these sanctions outweighs the anti-competitive detriment.
19. Some consumer organisations say your new Code is too vague and isn’t tough enough on areas like telemarketing and Internet. How do you respond to them?
The telemarketing components are a direct lift from the government’s own Austel Report on Telemarketing which was the product of extensive consultations with various interests. The Internet standards supplement other fair trading and privacy protection standards in the Code and are based on the latest draft OECD Guidelines for e-commerce.
The Code has been based on the best available models and principles from around the world and has been developed over three years through a lengthy and involved consultative process with industry, government and consumer groups.
20. What solutions does the new Code offer people who want to be taken off mail and telemarketing lists?
For some time ADMA has operated a Do Not Mail/Do Not Call preference service for consumers. This enables people to register to have their name and contact details removed from marketing campaigns. Use of this service will now be compulsory for all ADMA members.
21. Does this Code do anything about the amount of advertising mail people receive?
To the extent that this material is addressed advertising, yes it will. It is important however to make the distinction between direct marketing material, which is commonly addressed mail, and retail traffic building which is unaddressed drop-off material or flyers. We represent mainly those businesses and organisations that, for the most part, utilise addressed mail, catalogues and the telephone to reach their customers.
If consumers want to stop receiving addressed advertising mail, they can write to ADMA and we will have their name removed from our member’s list. Or they can call toll free on 1-800 646 664. In addition, consumers can have their names removed from individual companies marketing lists by contacting those companies directly.
22. Who should people contact if they find they are getting offers they don’t want?
Under the new Code of Practice, people need only contact the originating company. They should inform the company they want their name removed from the company’s marketing list. If they wish, consumers can also ask for the source of their name. Once they have this information, they can contact the company that traded their name in the first place and ask that company to cease doing so.
23. Don’t you think the government will enact legislation anyway?
We have been given an opportunity by the government to prove that self-regulation works. We have adopted the model code of practice endorsed by the Ministerial Council on Consumer Affairs last November. We have also taken on board the principles laid down by the Privacy Commissioner in her National Principles for the Fair Handling of Personal Information. Now it is up to our members to show that we can effectively self-regulate.
24. How does it help consumer privacy?
The new measures give consumers control over their personal information by limiting collection of customer information and requiring marketers to tell consumers who they are, how to get in touch with them and what they intend to do with personal information. Consumers will also be given an opportunity to block the transfer of their contact details to any other marketer.
25. Can you give an example of this opt-out system?
Opting out means consumers can request direct marketers take their names off lists for future campaigns or not pass them on to other companies. This is compulsory under our new Code. The opt-out offer might read like this:
"From time to time, we provide the names of our best customers to other organisations whose products or services might be of interest to them. If you would prefer not to have your name passed on to other companies, please let us know by ticking the box. We’ll make sure your name goes no further.
26. How does the cooling off period work?
This will make it easier for a customer to return a purchase or cancel a contract with a direct marketer. Direct marketers will now have to give customers seven days to cancel the contract, starting from the date the customer could be deemed to have received the goods. They must also ensure that the customer’s right to cancel the contract is displayed prominently in any contractual documents.
27. How do you define direct marketing?
Direct Marketing is a process that allows consumers to respond directly
to offers of goods and services from their home or business and includes
database marketing, the Internet and long-term relationship programs. Direct
marketing offers are presented through a variety of electronic media including
television, radio, telephone and increasingly on-line computer as well
as various print media such as catalogues, magazines, newspapers and mail.
CHIEF EXECUTIVE OFFICER
AUSTRALIAN DIRECT MARKETING ASSOCIATION
Rob Edwards’ five years as Chief Executive Officer of ADMA has coincided with the emergence of direct marketing as a dominant force in the advertising media mix. It has also witnessed a dramatic change in the Association’s position as a leader in self-regulation and consumer satisfaction in the era of one-to-one marketing.
During his time at the helm, ADMA’s membership has grown from 250 to more than 400 corporations including publishers, financial institutions, catalogue and mail-order traders, music/video/wine clubs, charities, printers, airlines, advertising agencies, call centres, hotels, travel services and many other users and suppliers of direct marketing services.
Rob spends over half of his time working with government and industry on public policy issues such as consumer data protection, telecommunications, new interactive technologies and fair trading. He is a sought-after international and regional speaker on issues ranging from direct marketing trends to consumer privacy and fair trading.
Over the past three years he has steered the direct marketing industry through complex negotiations with government, industry and consumer groups around the development of a new Direct Marketing Code of Practice, including new standards for fair trading and telemarketing, as well as the creation and adoption of National Principles for the Fair Handling of Personal Information.
Prior to taking up his current position, Rob was Vice Chairman of the
ADMA Board of Directors and Managing Director of Key Direct Response, a
leading telemarketing and database bureau. His career includes executive
management roles in companies such as Royal Doulton, O’Brien Glass and
Pacific Aviation, a subsidiary of Ansett Transport Industries.
As a communications consultant, law lecturer and writer with a keen interest in privacy issues, Holly Raiche is ideally suited to serve as the first Chairperson of the Australian Direct Marketing Association’s new Code Administrative Authority. In her new capacity Ms. Raiche will play a pivotal role in ensuring industry compliance with ADMA’s new Code of Practice. Supported by industry and consumer representatives, the Code Authority will investigate unresolved complaints against member companies and adjudicate/mediate as necessary. It will offer interpretations of the Code when requested and assess complaints against non-members who have applied for membership in ADMA.
Ms. Raiche is a member of the editorial board of the newsletter Privacy Law and Policy Reporter where she has written numerous articles, including recent pieces on Privacy Protection for the Integrated Public Number Database and Privacy and the Infobahn: A Curious Recommendation. She is a Privacy Charter member and serves on the Australian Communications Industry Forum (ACIF)’s Working Committee on Complaints Handling. She has worked on numerous committees for Telecom Australia’s Consumer Council, including the Calling Number Display Committee as well as the Privacy and Consumer Advisory Committees of AUSTEL.
A communications consultant, she works primarily for the Communications Law Centre and the Corporate Policy Section of the Australian Broadcasting Corporation. She has written extensively about telecommunications regulatory issues, copyright law and moral rights for broadcasters.
As a Communications and Consumer Affairs adviser for the Australian Democrats, Ms. Raiche has drafted policy on broadcasting and telecommunications legislation for the Senate. She spent six years as a researcher/ policy adviser to the Communications Law Centre where she wrote for numerous journals. Most recently she has written articles and book chapters about universal service in telecommunications; tariffing structures in Internet telephony and the progress of telecommunications reform in Australia.
She teaches an undergraduate course in communications law at the University of New South Wales and has recently developed a new graduate course in information and communications law and policy. She has also taught communications law at UTS and guest lectured at UTS and Macquarie University’s School of Communications.
Ms. Raiche completed a BA in history as well as a Masters’ degree in
public and international Affairs at George Washington University, Washington,
D.C. She also holds an LLB degree from the University of New South Wales.
She was admitted as a solicitor, Supreme Court of New South Wales, in 1983.
Ms. Raiche currently resides in Greenwich, NSW.
As an international business lawyer with over 15 years experience with American Express in Europe, the Pacific Rim and the USA, Colm Lorigan has an extensive legal and financial services background.
Mr. Lorigan is responsible for the management of all legal matters for American Express in Australia and New Zealand. Previously he designed and managed a legal compliance program for American Express’ international business in New York. He has acquired extensive and specialised knowledge of international and local laws on financial services regulation and sanctions.
He has managed legal issues in Eastern Europe and Russia, Italy, Switzerland, Austria and Germany, including managing major German competition-related litigation concerning the introduction of the American Express Membership Rewards program in Germany, the first card program of its kind in that country.
Previously, Mr. Lorigan was the Sole General Counsel in the Far East and managed legal affairs in 12 countries including the legal issues for the launch of American Express Cards in Taiwan and Indonesia. He also set up the first American Express legal department in Australia.
Born in Ireland, Mr. Lorigan trained as a solicitor in England and began his legal career in London in the late 1970s working extensively on UK and European competition law. He holds an M.A. in Modern History from Oxford University, England.
With over 20 years of experience in direct marketing, Mr. Tolmie will bring a vital industry perspective to his position on the new Code Authority
In the late 1970s, Mr. Tolmie saw the potential of mail order and began a mail order photo processing company in Southport, Queensland. Today, his company, National Photographic Marketing, is the largest mail order photo company in Australia. The company is internationally recognised as one of the most advanced operations of its type and is a leader in the fields of software design, production automation and marketing.
Active in direct marketing circles, Mr. Tolmie is a past chairman of the ADMA Board of Directors and was also its treasurer for two years. In addition, he was instrumental in the formation of the Queensland Branch of ADMA.The recipient of the 1992 Australian Direct Marketer of the Year Award, Mr. Tolmie currently serves on the Direct Marketing Advisory Board of Monash University.
As Co-Founder and Managing Director of The Salmat Group, one of the largest service suppliers to the direct marketing industry, Peter Mattick brings valuable business insight to the new Code Authority.
He has been actively involved in direct marketing since Salmat’s inception in 1979 and stands at the forefront of the industry as a leading force in data technology, laser printing, mailing and telemarketing. Under his guidance, Salmat has grown to employ 1,100 people with sales approaching $200 million.
As immediate past Chairman of the Board of the Australian Direct Marketing Association and a board member of ADMA for four years, Mr. Mattick has played a central role in gaining industry support for enhanced consumer satisfaction measures.
He holds a Commerce Degree from the University of New South Wales and
is a fellow of The Australian Society of Certifying Practising Accountants
and a foundation fellow of the Australian Institute of Company Directors.
Robin Brown brings over 15 years of experience in consumer and business regulatory affairs to ADMA’s Code Authority with plenty of experience in disputes resolution.
He spent 10 years as the chair and chief executive of Australia’s national consumer body, the Australian Federation of Consumer Organisations. He also spent five years as an associate member of the board of the Australian Telecommunications Authority (AUSTEL) and oversaw its privacy study.
Mr. Brown has been directly involved in the establishment of industry-specific dispute handling mechanisms in the banking, life insurance, health insurance and telecommunications sectors, including four years as a member of the Life Insurance Industry Complaints Panel. He was a member of the inaugural Banking Industry Ombudsman Council.
In addition, he worked as a consumer affairs consultant on such issues as reforms to the insurance industry. He has been involved in efforts to advance consumer protection in developing countries including working as a consultant to the United Nations Development Programme on consumer protection in Egypt.
Mr. Brown holds a degree in Psychology and Zoology from the Australian
National University where he has also undertaken the Public Policy Programme.