Direct Marketing

Subscribe to Direct Marketing via RSS

The European Commission has released proposals for new legislation that seeks to create stronger privacy in electronic communications. The draft Privacy and Electronic Communications Regulation (the “Regulation”) is intended to replace the ePrivacy Directive (2002/58/EC) and will also bring the law in line with the new rules as set out in the General Data Protection Regulation (the “GDPR”) as part of the process to modernize the data protection framework in the EU. As a regulation (rather than a directive) it will apply uniformly across the EU as there will be one single set of rules which will crease more legal certainty, save for certain prescribed areas where EU Member States can have their own rules.

Last Thursday the Federal Communications Commission (FCC) issued an order confirming that companies must include opt-out instructions on all fax ads, even for recipients who previously agreed to receive a fax from the company. The order clarifies that solicited fax ads, like unsolicited ads, must also comply with the rules set forth in the FCC’s 2006 Junk Fax Prevention Order.  All fax ads must contain an opt-out notice that (1) is clear and conspicuous and on the first page of the ad, (2) states that the recipient may make a request to the sender not to send any future ads, and (3) contains a domestic phone and fax number so that the recipient has a contact for opt-out purposes.

On October 16, 2013, the Federal Communications Commission’s (“FCC”) new rule implementing the Telephone Consumer Protection Act (“TCPA”) will go into effect. 

These are rules with teeth, as the TCPA allows recovery of anywhere between $500 and $1,500 for each improper communication and does not require a showing of actual injury.  This makes the TCPA a particularly attractive vehicle for class actions.  Accordingly, we highlight some of the more salient changes in the new rule below.

In its Memorandum Opinion and Order dated November 9, 2012, the US District Court for the Northern District of Alabama in Pinkard v. Wal-Mart Stores, Inc. held that under the Telephone Consumer Protection Act (TCPA), when an individual discloses his or her cellular phone number to a business, that individual is deemed to have expressly consented to receive telephone calls and text messages from that business unless he or she has expressly limited the scope of such consent at the time of the disclosure.  

In a move that will no doubt please many consumers, on February 15, 2012, the Federal Communications Commission approved a new set of rules aimed to substantially curb the practice of telemarketers to engage in "robocalling", or the placing of automatic, pre-recorded calls. The key development in the FCC’s 48 page Report and Order is that now, prior to initiating a "robo call", a telemarketer must obtain the consumer’s express written consent.  This new requirement of express written consent supplants the previous robocalling regime, where merely having an "existing business relationship" with a consumer was sufficient to create an exemption from the ban against robocalling; that exemption has now been eliminated under the rules. 

Recently, several large retail chains have started offering customers the option to receive electronic receipts for in-store purchasers, as the New York Times reports. For instance, a cashier may ask a customer for his or her email address at check-out and then email the receipt to the customer. Paperless receipt programs offer retailers new and exciting marketing opportunities–for instance, adding a retail store purchaser’s email address to the company’s customer relationship management database, even if that customer never shops online. But with these new opportunities come potential liabilities from old laws that were not written with this new technology in mind.
…