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Fair Trading and Marketing Communications

 


While it is shared in good faith, the information presented on this site should not be relied upon to make financial decisions, decisions related to legal compliance, legal process or similar.

You should take advice from your solicitor, law firm, accountant and/or business advisor before taking any action as a result of information made available on or through this website.

See also our Disclaimer

 

 

UK Company Law

In the UK, the Corporate Law and Governance Direcrorate of the Department of Trade and Industry is responsible for development and regulation of Company Law. The DTI is in the process of updating the requirements on the UK's 1300 or so listed companies to regulate the information which must be provided in a textual narrative for shareholdes on the company's objectives, strategy, past performance and future prospects. www.dti.gov.uk/cld

 

 

Regulations and Laws on Marketing in Australia

Fair Trading and Marketing Communications:
ACCC and the Trades Practices Act

Australian Competition and Consumer Commission (ACCC)is the Australian Federal Government's national agency dealing generally with competition matters and the only agency with responsibility for enforcing Australia's Trade Practices Act and the state/territory application legislation.
Main website www.accc.gov.au

Marketing Communications professionals planning campaigns in Australia should read a short (7 page) plain english summary of the Trade Practices Act legislation, which can be downloaded from:
www.accc.gov.au/content/index.phtml/itemId/325781

The Trade Practices Act covers many aspects of business activity, but advertising is perhaps the area where marketeers can most easily stray onto the wrong side of the law. The principle is the obvious one that businesses should not mislead or decieve through advertising. An excellent, plain english description of the Trade Practices Act and law relating to advertising in Australiacan be found at: www.accc.gov.au/content/index.phtml/itemId/6116

The ACCC publishes a free, easy to understand guide for small businesses on Advertising, Selling and the Trade Practices Act at:
www.accc.gov.au/content/index.phtml/itemId/304501/fromItemId/6116

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Australia's Do-Not-Call Register for Telemarketing

Australia's new telemarketing do-not-call legislation came into effect on 31 May 2007. While there are quite a lot of exceptions (eg market research calls, charities, and political parties) it is now illegal for telemarketers to call Australian phone numbers which are mainly for personal or domestic use and whose owners have put them on the do-not-not call register.

The Do-Not-Call register legislation is regulated by the Australian Communications and Media Authority

Telemarketing companies must send their databases to Service Stream, who run the register. Service Stream then wash companies databases against the do not call register and send the telemarketing company a list of people who cannot be called. Fees will apply if more than 500 do-not-call names a year are returned to a telemarketing company. For most large telemarketing operations, these fees will be in the order of $24,000 a year initially (for up to 10 million names a year).

Consumers can register their phone numbers at: www.donotcall.gov.au

Telemarketers can access the do-not-call register service at: www.donotcall.gov.au/dncrtelem/index.cfm

Details for industry have been published at: www.acma.gov.au/WEB/STANDARD//pc=PC_300340

Privacy Legislation in Australia

From late 2001 the Australian Federal Government provided individials with privacy of information protections under the law. These are covered by the Federal Privacy Act (http://www.privacy.gov.au/act/index.html ). In Australia, the office of the Privacy Commissioner is the regulatory body for this act. By and large, compliance with the law is pretty much common sense and encourages good business practice.

As a very brief summary, the law revolves around asking people for permission to collect and use their information, and obligations to disclose what information is being kept and for what purpose, and obligations relating to the correction of inaccurate or disputed information. You should read the Privacy Commissioner's own summary - the Australian National Privacy Principles can be downloaded from:
http://www.privacy.gov.au/publications/nppgl_01.doc

The Privacy Commissioner's website is:
www.privacy.gov.au

European Union Privacy Law

It is generally accepted that Europe has the strongest data protection and privacy legislation, and that US citizens have some protections, but less so than in either the EU or Australia. When doing business internationally, it would be wise to adopt business practices in compliance with the European legislation, as well as with Australian law.

Privacy and Electronic Communications (EC Directive) Regulations 2003 came into force on 11 December 2003. The Privacy and Electronic Communications Regulations 2003 have 2 new rules for email marketing. A summary of these can be read at:
http://ico-cms.amaze.co.uk/DocumentUploads/New%20rules%20on%20email%20marketing.pdf

For a full (31 page) description of the EC directive on these and related regulations, see:
http://europa.eu.int/eur-lex/en/com/cnc/2004/com2004_0028en01.pdf

For more information, search for "Personal Data Protection" on the European Union's law website at:
http://europa.eu.int/eur-lex/en/index.html

UK Information Commissioner website: http://www.informationcommissioner.gov.uk/

USA Privacy and Spam legislation websites
USA Spam Act (passed by Congress December 2003)
http://thomas.loc.gov/cgi-bin/bdquery/z?d108:s.00877:

General site on US Law is provided by the "Thomas" (Jefferson) site operated by The Library of Congress at http://thomas.loc.gov/home/thomas.html.

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Anti-Spam Legislation

SPAM has risen from 17% of network traffic to over 50% in the last 18 months. It is a major problem to businesses, network operators, and individuals alike.

Definition of Spam
Spam is a generic term used to describe electronic 'junk mail' - unwanted messages sent to a person's email account or mobile phone. In Australia, spam is defined as 'unsolicited commercial electronic messages'. This includes email, SMS, MMS, instant messaging, and all other forms of electronic communication.

Unwise Business Practice
Although some companies think it is to their advantage to "play the numbers game" and blindly send out the same communication to many thousands of people, it is very poor business practice.

Even without recent legal constraints, it is bad marketing practice to send people emails that they neither expect nor find relevant.

By continuously communicating with individuals on topics that have no interest to them you simply train them to ignore you - very much affecting your ability to communicate with them on the occasion you have a targeted, relevant communication that you definitely want the individual to receive.

Some information on how to avoid being inadvertently caught by Spam filters - when sending legitimate permission-based email - can be read at the following site. Note this site is unrelated to Marketing Minds, and we do not endorse it or its suggestions in any way.
http://www.wordbiz.com/avoidspamfilters.html

Regulation of eMarketing in Australia

Anti-spam bill introduced to Australian Federal parliament in September 2003 makes it a civil offence to use address harvesting software to construct distribution lists of recipients or a list built in this way. This had become a common practice by eMarketing companies.

Any unsolicited commercial emails must contain accurate information about the origin of the mail and provide a means for recipient to opt out. The regulation applies to email, SMS, MMS, and instant messaging. The regulation applies regardless of where (which country) the email originated from or in which country the eMarketing company resides. Non-commercial mail, not selling a product or service (eg market research) is exempt. Charities, political parties, religious organisations seeking donations are exempt.

Australia's Spam Law

The Australian Communications and Media Authority (ACMA) and the Australian High Tech Crime Centre are working in partnership to identify and track down organisations or individuals who breach Australia's Spam Act. The act itself is developed and regulated by the Australian Government Information Management Office (AGIMO). AGIMO is a body within the Australian Federal Government Department of Communications, Information Technology and the Arts (DCITA).
The main AGIMO website is at www.agimo.gov.au
The main DCITA website is at www.dcita.gov.au

The ACMA is the Australian Federal Government agency responsible for enforcing Australia's anti-spam law, the Spam Act 2003. An explanation and key recommendations for marketers is provided on its the ACMA website: www.acma.gov.au

ACMA was formed on 1 July 2005 by the merging of the Australian Communications Authority (ACA) and Australian Broadcasting Authority (ABA). On 16 March 2005, the former ACA registered a code of practive for eMarketing under section 117 of the SPAM Act with the effect that compliance with the code is mandatory and enforceable by the Australian Communications and Media Authority (ACMA). The code of practice can be downloaded from the ACMA website via the following link:

The Australian eMarketing Code of Practice: March 2005

Simple business guides to combatting spam are available free from the government websites listed above.

Advertising Standards Bureau (ASB)

The Advertising Standards Bureau administers Australia's system of advertising self-regulation through the Advertising Standards Board and the Advertising Claims Board. The self-regulation system recognises that advertisers share a common interest in promoting consumer confidence in and respect for general standards of advertising. The Advertising Standards Board provides a free public service of complaint resolution. It provides determinations on complaints about most forms of advertising in relation to issues including the use of language, the discriminatory portrayal of people, concern for children, portrayals of violence, sex, sexuality and nudity, and health and safety. The ASB website includes links and guidance on how members of the public may complain about a particular advert in Australian. www.adstandards.com.au

 

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Australia's Companies Law

The Australian Securities and Investments Commission (ASIC) enforces and regulates company and financial services laws to protect consumers, investors and creditors. An independent Australian government body, ASIC has regulated Australian financial markets, securities, futures and corporations since January 1991. From 1998 it became responsible for consumer protection in superannuation, insurance, deposit taking and, from 2002, credit. ASIC works with other financial and law enforcement agencies in Australia and internationally.

www.asic.gov.au

ASIC administers the following legislation (or relevant parts of it), as well as relevant regulations made under it:

  • Corporations Act 2001
  • Australian Securities and Investments Commission Act 2001
  • Insurance Contracts Act 1984
  • Superannuation (Resolution of Complaints) Act 1993
  • Superannuation Industry (Supervision) Act 1993
  • Retirement Savings Accounts Act 1997 Life Insurance Act 1995.

Australian Institute of Company Directors (AICD)
Independent body which aims to foster professionalism in directorship. The main body in Australia providing education on corporate governance from a director's perspective, and representing the interests of its members - company directors.
www.companydirectors.com.au

Institute of Directors (UK)
UK organisation providing education on corporate governance, and representing the interests of its members - UK-based company directors.
www.iod.com

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Intellectual Property in Australia:
Trade marks, Patents, and Copyrigh
t

Only companies who have registered a trade mark with the Australian regulatory agency, IP Australia, may use the ® symbol and have a legal exclusivity on their trade mark (ie it is only defendable under Australian Law if you are registered).

IP Australia also regulates Patents in Australia. Their website is at: www.ipaustralia.gov.au

Without going into the blow-by-blow of it, if you are thinking of using a name (or other identity) for a product or something else significant to your business, you need to choose carefully (which is why there are quite a lot of consultants and lawers specialising in this area).

Not everything can be registered - general rule of thumb is if the word is in common usage, you can't claim ownership of it. The full rules are on IP Australia's website, summarised by them at http://www.ipaustralia.gov.au/trademarks/faq_index.shtml#capable

Note that under Australian law the use of ™ has no standing, strictly speaking. Accordingly, since it is farily meaningless in an Australian legal context, use of ™ does not require any registration. If you want to use a term, name, symbol, image, etc as a trade-mark you need to get it registered and have permission to use the ® symbol from the Australian regulator.

If you just want to impress people and make things look "important", there's nothing stopping you slapping ™ on anything and everything (and many people do!).

Note for multi-nationals with operations in Australia: registration of a trade mark in your home country does NOT automatically mean your favourite brand name, or whatever, is protected in Australia. You need to register the trade mark with the Australian authorities, even if you use the ® symbol at home. Likewise, things you have ™ on in your home country are not legally protected in Australia. The only subtlety to this is you CAN use the ® symbol identifying the country of registration next to is, but this tends to spoil your visual presentation - better to register in Australia.

The US Copyright Laws

The US Copyright Office is the Government agency of the USA which administers US copyright law, and it is the place to register claims to copyright in the USA.
* Home page http://www.copyright.gov
* Copyright legislation (bills and acts) in US Congress www.copyright.com/legislation

Of US copyright law, the Digital Millenium Copyright Act is of particular relevance to Australian businesses. This is a result of the Free Trade Agreement between the USA and Australia (agreed in 2004) and the ease with which digital information and properties can be transmitted and/or transacted.
www.copyright.gov/legislation/dmca.pdf

US Consumer Product Safety Commission (CPSC)

The US Consumer Product Safety Commission is the government body which regulates product recalls where these are for consumer safety issues. The CPSC website contains a comprehensive listing of all safety-related product recalls in the USA. http://cpsc.gov/


Australian Government Lobbyists Register

From 1st July 2008 onwards, all individuals and organizations who conduct lobbying activities or whose employees conduct Government lobbying activities on behalf of a client have to submit their details, including their clients names, to a public register. There are certain exclusions, but the rules are fairly comprehensive. The register covers all parties who represent clients in dealings with the Australian Public Service, Minsters or their staff, Government agencies and a number of other types of people. The Australian Register of Government Lobbyists and the associated Lobbying Code of Conduct can be viewed online at: http://lobbyists.pmc.gov.au

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