Amendments to the CAP Code
27 October 2004
Some changes have been made to the 11th Edition of the CAP Code
On 4 May some minor changes and some major changes to the British Code of Advertising, Sales Promotion and Direct Marketing were published.
When it was introduced in March last year, the 11th edition of the Code pre-empted the Privacy in Electronic Communications Directive but after the latter was effected as the Privacy Regulations it became clear that the Code needed some changes to bring it into line with the new law. CAP has consulted the Office of the Information Commissioner on how the regulations are likely to be interpreted and the Code changes reflect that consultation. Almost inevitably, however, we might need more changes in future as the impact of the regulations becomes clearer.
In the Direct Marketing Rules, the Code now distinguishes clearly between B2B and B2C electronic marketing communications: in simple terms, unsolicited messages sent to consumers are prohibited but those sent to businesses are allowed; the amended clause 43.4 explains more fully. An important point to remember is that the Code does not allow unsolicited messages to company employees at their place of work if the message is irrelevant to their work. Elsewhere in this Update we have given you some examples of what clause 43.3 means in practice.
New Mobile Marketing Help Note
We have produced a Help Note on Mobile Marketing to help you interpret the different aspects of e-mail and SMS text messaging; many direct marketers will find it essential reading. Click here to see the Help Note. Both the Help Note and clause 43.4 address the questions of whether an intended recipient is an existing customer, when direct marketers should allow consumers to opt-out of receiving more marketing messages and what constitutes opt-in consent.
In the General Rules, the revised clause 22.2 now explains more clearly than before the requirement in distance-selling ads to give the marketer's name and full address - a PO Box number will often not do. The clause now explains that a 'valid address' is one to which recipients can send opt-out requests..
Clause 1 of the Code describes the scope of the Code in terms of the types of ads that it covers and those it does not. In 1.2.i, we exclude live oral communications, including telephone calls, but not recorded oral messages, which are subject to the Code. And in clause 1.3.j, we have introduced a brief definition of a corporate subscriber because of its importance in interpreting clause 43.3 and the Privacy Regulations. If you are in doubt about whether you comply with the regulations, we advise you to consult a solicitor who specialises in marketing law or, if you are a member, the DMA or ISP.
Later on in the Code, we have introduced the Rules on Tobacco, Rolling Papers and Filters, which were under review when the 11th edition of the Code was printed.
Related Codes:
- 1.1 The Code applies to:
- a) advertisements in newspapers, magazines, brochures, leaflets, circulars, mailings, e-mails, text transmissions, fax transmissions, catalogues, follow-up literature and other electronic and printed material
- b) posters and other promotional media in public places, including moving images
- c) cinema and video commercials
- d) advertisements in non-broadcast electronic media, including online advertisements in paid-for space (eg banner and pop-up advertisements)
- e) viewdata services
- f) marketing databases containing consumers' personal information
- g) sales promotions
- h) advertisement promotions
- 1.2 The Code does not apply to:
- a) broadcast commercials. (The BCAP Advertising Standards Codes set out the rules that govern broadcast advertisements on any television channel and radio station licensed by Ofcom.)
- b) the contents of premium rate services, which are the responsibility of PhonepayPlus; marketing communications that promote these services are subject to PhonepayPlus regulation and to the Code
- c) marketing communications in foreign media. Direct marketing that originates outside the UK but is targeted at UK consumers will be subject to the jurisdiction of the relevant authority in the country where it originates so long as that authority operates a suitable cross-border complaint system. If it does not, the ASA will take what action it can. All members of the European Union, and many non-European countries, have self-regulatory organisations that are members of the European Advertising Standards Alliance (EASA). EASA co-ordinates the cross-border complaints system for its members (which include the ASA).
- d) Health-related claims in marketing communications addressed only to the medical, dental, veterinary and allied professions
- e) classified private advertisements, including those appearing online
- f) statutory, public, police and other official notices/information, as opposed to marketing communications, produced by public authorities and the like
- g) works of art exhibited in public or private
- h) private correspondence, including correspondence between companies and their customers about existing relationships or past purchases
- i) The Code does not apply to live oral communications, including telephone calls.
- j) press releases and other public relations material, so long as they do not fall under 1.1 above
- k) editorial content, for example of the media and of books
- l) regular competitions such as crosswords
- m) flyposting (most of which is illegal)
- n) packages, wrappers, labels, tickets, timetables and price lists unless they advertise another product, a sales promotion or are visible in a marketing communication
- o) The Code does not apply to point of sale displays, except those covered by the sales promotion rules and the rolling paper and filter rules.
- p) election advertisements as defined in clause 12.1
- q) website content, except sales promotions and advertisements in paid-for space
- r) sponsorship; marketing communications that refer to sponsorship are covered by the Code
- s) customer charters and codes of practice.
- 1.3 These definitions apply to the Code:
- a) a product encompasses goods, services, ideas, causes, opportunities, prizes or gifts
- b) a consumer is anyone who is likely to see a given marketing communication, whether in the course of business or not
- c) the United Kingdom rules cover the Isle of Man and the Channel Islands
- d) a claim can be implied or direct, written, spoken or visual
- e) the Code is divided into numbered clauses
- f) a marketing communication includes all forms of communication listed in 1.1
- g) a marketer includes an advertiser, promoter or direct marketer
- h) a supplier is anyone who supplies products that are sold by distance selling marketing communications (and may also be the marketer)
- i) a child is anyone under 16.
- j) A corporate subscriber includes corporate bodies such as limited companies in the UK, limited liability partnerships in England, Wales and N. Ireland or any partnerships in Scotland. It also includes schools, hospitals, Government departments or agencies and other public bodies. It does not include sole traders or non-limited liability partnerships in England, Wales and N. Ireland. See clause 43.4.
- 22.2
Distance-selling marketing communications should contain the full name of the marketers (and the suppliers if different).
Distance-selling marketing communications that require payment before products are received and have written response mechanisms should also contain the geographical address of the marketers (and the suppliers if different). Those that contain a telephone response mechanism only may contain the marketers’ telephone number instead (though see clause 42.2a).
E-mail and mobile marketing communications should contain the full name and a valid address (e.g. an e-mail address) of the marketers to which recipients can send opt-out requests.
Fax and non-live-sound automated-call marketing communications should contain the full name and a valid address or freephone number of the marketers to which recipients can send opt-out requests.
Sales promotions and marketing communications for one-day sales, homework schemes, business opportunities and the like should contain the full name and geographical address of the marketers (see clause 34.1h and section 52).
Marketing communications for employment agencies should contain the full name and contact details of the marketers.The law requires marketers to identify themselves in some other marketing communications. Marketers should take legal advice.
- 43.3 Except if it is obvious from the context, or if they already know, consumers should be informed at the time when personal information is collected:
- a) who is collecting it (and the representative for data protection queries, if different)
- b) why it is being collected
- c) if it is intended to disclose the information to third parties, including associated but legally separate companies, or put the information to a use significantly different from that for which it is being provided, in which case an opportunity to prevent this should be given.
- 43.4 The explicit consent of consumers is required before:
- a) processing sensitive personal data, including information on racial or ethnic origin, political opinion or religious or other similar beliefs, trade union membership, physical or mental health, sex life or any criminal record or allegation of criminal activity
- b) sending marketing communications by fax. Explicit consent is not required when marketing by fax to corporate subscribers (see 1.3j), though marketers must comply with 43.2d in particular and, if necessary, run their databases against the fax data file.
- c) sending marketing communications by e-mail or to mobile devices, save that marketers may send unsolicited marketing about their similar products to those whose details they have obtained in the course of, or in negotiations for, a sale. They should, however, tell them they may opt-out of future marketing both when they collect the data and on each occasion they send out marketing communications and should give them a simple means to do so. Explicit consent is not required when marketing business products to corporate subscribers (see 1.3j), including to their named employees
- d) sending non-live-sound marketing communications by automated calling systems.