2005-2006 campaign regarding ADMA wanting ACCC authorisation again

To the parent page - general telemarketing social issues and history of the debate, including the Government's Do-Not-Call list proposal.
To the 2003-2004 page, with various detailed submissions regarding the telemarketing problem.

The ACCC's page for this matter: http://www.accc.gov.au/content/index.phtml/itemId/479780

19 December 2005

My submission is:
ADMA-rw.html  or in PDF, as sent to the ACCC: ADMA-rw.pdf .
The submisison from the Finacial Services Consumer Policy Centre is here:

8 November 2005

Please see the directory ADMA-docs/ for some information on their Do-Not-Call/Mail lists from May to September 2005.

31 October 2005

The Australian Direct Marketing Association ADMA http://www.adma.com.au has applied to the ACCC to gain authorisation for a modified version of its Direct Marketing Code of Practice.  

In October 2005, the ACCC made a Draft Decision approving this application.  That decision, which includes ADMA's proposed Code, and various documents as they arrive, is here:
That page also links to the various submissions in the 2003/2004 period.

The ACCC is clearly underwhelmed by this new Code:
In considering the possible anti-competitive effect of the Code, the 
ACCC has noted the following:

* the loss of/or inability to obtain ADMA membership is unlikely to
significantly impede a direct marketers' ability to market or
compete in the industry;

* the level of anti-competitive detriment likely to flow from the
existence of the ADMA Code is significantly lessened due to the
current legislative obligations which exist regardless of the Code.

* it is not likely that the burdens placed on organisations to
comply with the ADMA Code would result in any significant
anti-competitive detriment.

Overall, the ACCC has concluded that the anti-competitive effect of
the Code is likely to be minimal.

In considering the extent to which the ADMA Code enhances public
benefit, the ACCC has concluded that some features of the Code,
being those provisions which provide consumers with rights and
avenues additional to those that are granted at law and provide
consumers with recourse to a resolution mechanism where they have
complaints regarding the conduct of an ADMA member, are likely to
result in some public benefits.

It should be noted that the ACCC considers that an industry code
responding to and appropriately addressing concerns about direct
marketing has the potential to result in significant benefits to the
public. While ADMA has made a number of key improvements to the
Code, the ACCC nonetheless considers that further improvements
in a number of key areas would improve the effectiveness of the
ADMA Code and would be likely to result in greater benefits to
the public
than currently arise.

On the balance, however, the ACCC considers that the ADMA Code
is likely to result in a small net benefit to the public. The ACCC
therefore proposes to grant ADMA's application for revocation of
A40077 and its substitution by A90876 for a period of 3 years.
ADMA (at 19 October 2005, according to their website listings) has 544 members, only 32 of which are "telemarketing services" companies:
Active Mail                                    TAREN POINT    NSW
Advantage Communications & Marketing Pty Ltd   NORTH PERTH    WA
Blueprint Management Group Pty Ltd             SYDNEY         NSW
bms telecorp                                   KEW EAST       VIC
Call Centre INTEGRITY Pty Ltd                  MILSONS POINT  NSW
Campbell Brothers Services                     AUBURN         NSW
Comprite Pty Ltd                               RED HILL       QLD
Contact 1-2-1 Pty Ltd                          ADELAIDE       SA
Controlled Marketing                           WEST PERTH     WA
Customers 1 to1 Pty Ltd                        CHATSWOOD      NSW
Direct Connect                                 SYDNEY         NSW
DTS Group Pty Ltd                              CHELTENHAM     VIC
Dun & Bradstreet                               MELBOURNE      VIC
Famoice Technology Pty Ltd                     FITZROY        VIC
Hogan Marketing Services                       SYDNEY         NSW
ICT Australia Pty Ltd                          SYDNEY         NSW
iLeo                                           MCMAHONS POINT NSW
Information Dialling Services Pty Ltd          MILPERRA       NSW
IT Direct Pty Ltd                              RYDALMERE      NSW
Lake Corporation Pty Ltd                       WILLOUGHBY     NSW
Link Communications Corporation                MELBOURNE      VIC
Morganisation Pty Ltd                          OBERON         NSW
MRM Partners Worldwide                         WOOLLOOMOOLOO  NSW
PCI Call Centre Solutions                      MOORABBIN      VIC
Salmat                                         ST LEONARDS    NSW
Smart Health Australia (Aust)                  BALACLAVA      VIC
Spencer Technology Services                    SURRY HILLS    NSW
Stellar Call Centres Pty Ltd                   RICHMOND       VIC
Telco Services Australia Pty Ltd               WEST PERTH     WA
Thomas Direct Pty Ltd                          RUNAWAY BAY    QLD
Unity4 Teleservices                            SURRY HILLS    NSW

Some of the other members do their own telemarketing, but I think most of them are primarily concerned with direct mail - which is ADMA's traditional field of coverage.

The Minister for Communications is apparently planning a Do-Not-Call scheme - and has the support of MPs from both government and opposition parties:
End of the line is nigh for serial phone pests October 16 2005 By Daniel Dasey
ADMA wants to run such a scheme!

Meanwhile, the Australian Teleservices Association (formerly the Australian Telemarketing Association):
is the body which covers outbound telemarketing, as a subset of its (mainly inbound) call centre industry coverage.

The ATA doesn't list its membership. 

I suggest that the ACCC should postpone its ADMA decision until it is clear what the federal government is planning with a Do-Not-Call list.  In any event, I believe that an ADMA Code should only be approved if it makes not attempt to cover telemarketing.  An important criterion in the ACCC approving an organisation's Code of Practice is that the organisation has significant industry coverage.  But ADMA has very poor coverage of all the companies (and charities) which do outbound telemarketing.

The ACCC is having a pre-decision conference on 14 November and is receiving written submissions until 16 December, or potentially longer according to government policy developments regarding a Do-Not-Call list.