Moonstone: A new approach to prospecting required?

Proposed legislation contained in The Protection of Personal Information Bill will have serious ramifications for call centres, and may also impact on prospecting practices of ordinary advisors.

The Bill sets out to protect consumers against unsolicited electronic approaches in the following ways:

Section 66.
1.The processing of personal information of a data subject for the purpose of direct marketing by means of automatic calling machines, facsimile machines, SMSs or electronic mail is prohibited unless the data subject –

a.has given his, her or its consent to the processing; or
b.is, subject to subsection (2), a customer of the responsible party.

2.A responsible party may only process the personal information of a data subject who is a customer of the responsible party in terms of subsection (1)(b) –

a.if the responsible party has obtained the contact details of the data subject in the context of the sale of a product or service;
b.for the purpose of direct marketing of the responsible party’s own similar products or services; and
c.if the data subject has been given a reasonable opportunity to object, free of charge and in a manner free of unnecessary formality, to such use of his, her or its electronic details-

i.at the time when the information was collected; and
ii.on the occasion of each communication with the data subject for the purpose of marketing if the data subject has not initially refused such use.

3.Any communication for the purpose of direct marketing must contain-

a.details of the identity of the sender or the person on whose behalf the communication has been sent; and
b.an address or other contact details to which the recipient may send a request that such communications cease.

From the above it is evident that it is not only the way in which one approaches new clients that is involved. We will have to alter our approach to existing clients as well when we use electronic means to do so.

On the positive side, it seems that we will have some safeguard against our clients being solicited indiscriminately by direct insurers.

From a personal perspective I am particularly excited about being protected from cell phone operators offering special deals.