AU direct marketers claim 'opt-in' optional under SMS code - News - Communications

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This story was printed from ZDNet Australia.
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AU direct marketers claim 'opt-in' optional under SMS code

By Andrew Colley, 0
June 16, 2003
URL: http://www.zdnet.com.au/news/communications/soa/AU-direct-marketers-claim-opt-in-optional-under-SMS-code/0,130061791,120275407,00.htm

Carriers won't be required to ensure consumers have "opted-in" to receive short-message-service (SMS) marketing under a new communications industry code released last week according to the Australian Direct Marketing Association (ADMA).

Last week the Australian Communication Authority (ACA) said that under the code developed with the Australian Communication Industry Forum (ACIF) "SMS marketers would not be able to send messages to people unless they agreed to opt in".

The ACA last week said that carriers that breached the code would be in breach of their license agreement and could face fines of up to AU$10 million.

However the ADMA, which had participated in developing the code, has challenged the ACA's assertion.

ADMA spokesperson Jodi Sangster claims that are no provisions in the new code to force carriers and marketers to provide an opt-in mechanism.

ACIF rules list three conditions for sending marketing material via SMS. Under the first, the recipient must request the messages. However, according to ADMA there are two alternative conditions that can be met that do not require advertisers to ensure that recipients pro-actively opt to receive messages: the recipient provides "consent" to receive messages; or the marketer complies with National Privacy Principles outlined in the Privacy Act 1988.

"If you comply with the privacy principles you will automatically comply with the ACIF Code," said Sangster.

Under the National Privacy Principles outlined in the Privacy Act, companies and organisations can disclose personal information for direct marketing purposes if it is "impractical for the organisation to seek consent" for the information to be used, the recipient hasn't explicitly requested 'not' to receive messages and an opt-out mechanism is provided.

ADMA maintains that all definitions of consent used in the ACIF rules would also be taken from the privacy principles.

The ACA did not respond to ZDNet Australia's requests for comment on the ADMA's position in time for publication.

The ACA last week said that carriers that breached the code would be in breach of their license agreement and could face hefty fines of up to AU$10 million.

ADMA will conduct its own event to launch the new code on Thursday.