News

LONDON - The new Direct Marketing Commission has said firms that flout the DMA code of conduct will be publicly shamed.

The commission, unveiled today as successor to industry watchdog the Direct Marketing Authority, will threaten "adverse publicity" to DM rogue traders outside of the Direct Marketing Association's membership if consumer complaints about them are not heeded.

Matti Alderson, a former director general of the Advertising Standards Authority (ASA) and member of the Press Complaints Commission, has been appointed as chairman. "Adverse publicity is the strongest motivator against malpractice," she says. The DMC plans to drum up such publicity in trade and consumer publications.

The new body will police the Direct Marketing Association (DMA) code of conduct, as the DM Authority did, seeking expulsion of members that persistently flout the code, but will pursue non-members too. "Marketing is a very soft target," Alderson says. "It's essential we have self-regulation that's robust enough."

The new DMC is "substantially modelled" on ad watchdog the ASA. Most of its funding will come from the DMA, with a small amount from the Mailing Standards Levy.

Consultant and former DMA executive David Robottom says: "Trade bodies don't have powers over non-members, and it is generally the non-members, if any, that are not complying. This has been a big hindrance for the DMA."

The DMC has a board of nine people alongside three internal complaint investigators.

Criticism of the DM Authority centred around its low profile, an issue some feel will be solved by Alderson's prominence. Malcom Whitmarsh, former marketing industry director at Reed Exhibitions, says: "It's like the choice between a Rolls-Royce or a secondhand car with a brand name no one's ever heard of. People will sit up and take notice."

However, there are concerns about whether the threat of bad publicity is sufficient. Craik Jones chief executive Mike Welsh says: "The DMC needs to be able to punish non-members the way (communications industry regulator) Ofcom can."

INDUSTRY REACTION

Colin Lloyd, Former chief executive, Direct Marketing Association (DMA)

"Self-regulation is a bit like an insurance policy: you don't really worry about it until you need it. There's no point in having a code without a body that recognises complaints.

And, clearly, any code of practice has to reflect what's happening in the marketplace. I'm not sure what edition the DMA code is now on, but the code owner, the association, has to keep it up-to-date. With the help of the new commission, trends will be fed back to the DMA.

I was absolutely delighted when I heard about Matti's stewardship. No one is more experienced in this field of self-regulation. I'm sure she'll do a very good job. I've no doubt she will help to raise its profile among the public and stakeholders. It was an inspirational choice on the part of the authority."

Matt Conner, Client services director, Stephens Francis Whitson

"Bad publicity is a great stick for responsible brands. But I don't see how it will stop the rogue traders. I'd say you probably need some legislation to enforce good practice.

Anyone interested in their brand should support self-regulation. Negative PR is a very bad thing. Many brands are making bold statements, trying to improve the way things are done, especially with the green agenda. Capital One is a good example, with a new focus on effectiveness over volume being sent out.

Having Matti Alderson on board is good if it raises the profile of the commission - but only as long as it talks to the industry, as the issues will be very different from those in the general advertising industry