Charities that use cold-calling marketing techniques must ensure they comply with the Privacy and Electronic Communications Regulations (Privacy Regulations). The ICO recently fined two companies an aggregate of £225,000 for making cold-calls without checking whether anyone on their lists had opted out of receiving cold-calls. Although the companies were not charities, this case emphasizes the importance of complying with the Privacy Regulations.
Between May 2011 and December 2012 those companies attracted in excess of 2,700 complaints to the Telephone Preference Services (TPS) or reports to the ICO. This case highlights two things: (i) their disregard for individuals' wishes not to be contacted; and (ii) their lack of adequate knowledge of the Privacy Regulations.
Individuals have a right under the Privacy Regulations to opt-out from being cold-called. There is a legal requirement for charities and companies who rely on cold-calling to check with the TPS to make sure the people they call have not opted-out.
Many charity fundraising organisations do use marketing lists to
call people to ask for donations. Charities must ensure that their
staff and sub-contractors comply with the Privacy Regulations.
Non-compliance could lead to fines of up to £500,000 by the
ICO. In addition, there is potential damage to the charities
reputation, both from the cold-call calling activity itself and
from the publicity attached to any ICO fine.
ICO Director of Operations is pushing parliament to:
- make improvements to the law around unwanted marketing, calls and texts;
- introduce an easier process for the ICO to issue fines; and
- clarify the rules about how consumers give their consent to receive calls.
It seems that the ICO is on a mission to turn up the heat against those who do not comply with the Privacy Regulations. To ensure your charity (or company) is compliant with the requirements under the Privacy Regulations, you should ensure that fundraisers use the official TPS opt-out register to check that the individual who is about to receive a cold-call has not previously opted-out.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
