Law nibbles at spam problem

The EU Privacy and Electronic Communications Directive is due to become UK law later this year, and will require firms to gain the explicit consent of users in order to send email marketing to them. Many companies are likely to welcome this if it reduces the amount of spam travelling on their networks. However, firms that use direct marketing may have to update their processes, Web sites and databases to comply with the regulations.

The directive is designed to reduce the amount of spam clogging up corporate networks. It has been preceded by a new voluntary code of practice from the UK Advertising Standards Authority (ASA), which similarly requires firms to gain consent to use personal data for marketing purposes. The only exception to the consent rule will be if an organisation has an existing sales relationship with the consumer, and the goods or services being promoted are similar to those bought before.

Advocates say the new regulations will reduce the amount of spam in circulation. Many consumers are unlikely to opt in if they are clearly told that their information may be used for marketing. And as the number of consumers opting out grows, so the amount of spam should decrease, as legitimate firms cleanse their lists to comply with the law.

These new regulations are significantly different to previous arrangements. Under the existing Data Protection Act, consumers must merely be told for what purposes their personal data will be used. Firms can "opt in" consumers automatically - subscribing them to marketing lists, and leaving it up to each consumer to opt out, perhaps by tracking down an obscure section on a firm's Web site to uncheck a box.

The new arrangements are likely to reduce spam but might not be welcomed by firms that rely on direct marketing, said experts. "The measures will have a strong effect on direct marketing where firms want to remain legitimate," said Jamie Cowper, European channel manager at messaging specialist Mirapoint. He predicted that until firms were familiar with the new regulations and updated their systems and processes there would probably be a lot of complaints about companies that continued to use opt-out methods, or vague wording that confuses users as to what they are signing up for.

Cowper said legal enforcement would be essential to ensure compliance. "You need a body able to handle so many complaints," he added.

However, Cowper said that any reduction in spam would be marginal, unless the law reached further. "The problem is that much of the spam comes from outside Europe, and the legislation has no validity there," he explained.

There is also the problem that unscrupulous outfits such as those responsible for sending out the "get rich quick" and various advance-fee fraud emails are unlikely to abide by the new law - and offensive or fraudulent emails make up a large proportion of spam. This suggests the EU laws will only have a small effect on the problem.

To do more to limit spam, whether from legitimate parties or fraudsters within Europe and worldwide, the regulations need to be supported by efforts from Internet service providers (ISPs) and other companies to protect systems against unwanted emails, said Cowper.

Patrick White, founder of the British Web Design and Marketing Association, said that despite possible shortcomings the new regulations should be welcomed. "We've used the excuse that most spam emanates from the US and that is out of our jurisdiction in the UK for too long," he said. "But this approach has proven a haven for UK spammers."

Now firms are aware that there is a process for reporting unsolicited messages and the ASA will monitor and follow up consumer complaints, the spam problem is likely to be reduced, White added.

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