Compendium of Rules for Users of the Telephone in Sales, Marketing and Research
Commission on Marketing, Advertising and Distribution, June 2001

Foreword to Compendium

The International Chamber of Commerce (ICC) has a number of codes and guidelines that include self-regulation in varying situations when the telephone is used for marketing purposes, including market research. In order to make it easier for users of the telephone, the articles from the various codes that pertain to the use of the telephone in marketing have been gathered here (with reference back to their original code) in a single document. The Codes referred to are the ICC International Code of Direct Marketing (DM) and the ICC/ESOMAR International Code of Marketing and Social Research (MR), the full text of which can be found on ICC website www.iccwbo.org.

For the purpose of this Compendium, the Articles of the two Codes have been organised by theme. This should in no way be interpreted as a lack of distinction between direct marketing and marketing research.

Interpretation of Compendium

The articles are to be applied in the spirit as well as in the letter, bearing in mind the different degrees of knowledge, experience and discriminatory ability of those to whom the marketing activities are directed.

Definitions (from ICC Code of Direct Marketing)

For the purposes of this Code, direct marketing comprises all communication activities with the intention of offering goods or services or transmitting commercial messages presented in any medium aimed at informing and / or soliciting a response from the addressee, as well as any service directly related thereto.

• The term consumer refers to any person to whom direct marketing is addressed or who can reasonably be expected to be reached by it;
• The term data controller means the person or body responsible for the contents and / or use of the marketing file;
• The term data subject means any identified or identifiable natural person;
• The term Internet refers to the public network of computer networks which enables the transmission of information between users, or between users and a place on the network, as well as to all interactive media and electronic networks;
• The term marketing list means a data base created or used for direct marketing purposes;
• The term offer means any presentation or solicitation of goods or services;
• The term operator refers to any person, firm or company other than the seller that provides a direct marketing service for and on behalf of the seller;
• The term personal data means any information relating to an identified or identifiable individual;
• The term predictive dialler means an automated dialler which will adjust the rate at which it dials and deliver answered telephone calls immediately to match operator availability;
• The term preference service ("Robinson List") means the administration and operation of a suppression file of consumers who have registered their wish not to receive unsolicited direct marketing approaches, against which marketing lists are matched;
• The term premium rate number means a telephone / fax number to which a call is charged at a higher rate than the standard telephone tariff;
• The term processing means any operation or set of operations which is applied to personal data;
• The term product refers to any goods or services;
• The term seller refers to any person, firm or company that offers and provides goods and / or services by direct marketing, either directly or through an operator;
• The term tele-operator means either a seller or an operator using the telephone for direct marketing purposes;
• The term third parties means any natural or legal person that the data subject, the controller and any person authorised to process the data under the controller's authority or on his behalf.

Definitions (from ICC/ESOMAR International Code of Marketing and Social Research)

1. Marketing research is a key element within the total field of marketing information. It links the consumer, customer and public to the marketer through information which is used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; improve understanding of marketing as a process and of the ways in which specific marketing activities can be made more effective.
   Marketing research specifies the information required to address these issues; designs the m ethod for collecting information; manages and implements the data collection process; analyses the results; and communicates the findings and their implications.
   Marketing research includes such activities as quantitative surveys; qualitative research; media and advertising research; business-to-business and industrial research; research among minority and special groups; public opinion surveys; and desk research.
   In the context of this Code the term marketing research also covers social research where this uses similar approaches and techniques to study issues not concerned with the marketing of goods and services. The applied social sciences equally depend upon such methods of empirical research to develop and test their underlying hypotheses; and to understand, predict and provide guidance on developments within society for governmental, academic and other purposes.
   Marketing research differs from other forms of information gathering in that the identity of the provider of information is not disclosed. Database marketing and any other activity where the names and addresses of the people contacted are to be used for individual selling, promotional, fund-raising or other non-research purposes can under no circumstances be regarded as marketing research since the latter is based on preserving the complete anonymity of the respondent.
   
   
2. Researcher is defined as any individual, research agency, organization, department or division which carries out or acts as a consultant on a marketing research project or offers their services so to do.
   The term includes any department etc. which belongs to the same organization as that of the client. A researcher linked to the client in this way has the same responsibilities under this Code vis-à-vis other sections of the client organisation as does one who is completely independent of the latter.
   The term also covers responsibility for the procedures followed by any subcontractor from whom the researcher commissions any work (data collection or analysis, printing, professional consultancy, etc.) which forms any part of the research project. In such cases the researcher must ensure that any such subcontractor fully conforms to the provisions of this Code.
   
   
3. Client is defined as any individual, organization, department or division (including one which belongs to the same organization as the researcher) which requests, commissions or subscribes to all or any part of a marketing research project.
   
   
4. Respondent is defined as any individual or organization from whom any information is sought by the researcher for the purposes of a marketing research project. The term covers cases where information is to be obtained by verbal interviewing techniques, postal and other self-completion questionnaires, mechanical or electronic equipment, observation and any other method where the identity of the provider of the information may be recorded or otherwise traceable.
   
   
5. Interview is defined as any form of direct or indirect contact, using any of the methods referred to above, with respondents where the objective is to acquire data or information which could be used in whole or in part for the purposes of a marketing research project.

Basic principles
DM Article 1
All direct marketing activities should be legal, decent, honest and truthful.

Every direct marketing activity should be carried out with a due sense of social responsibility and should conform to principles of fair competition as generally accepted in business. Activities should not appear to condone or incite violence, nor to encourage unlawful or reprehensible behaviour.

No activity should be such as to impair public confidence in direct marketing.

Honesty
DM Article 2
All direct marketing activities should deal fairly with consumers. Activities should be so designed and conducted to avoid giving ground for reasonable complaint.

Any factor likely to affect consumers' decisions should be communicated in such a way and at such a time that the consumers can take it into account before accepting an offer or making any other commitment.

The fulfilment of any obligation arising from a direct marketing activity should be equitable, prompt and efficient.

No direct marketing should be represented to the consumer as being a form of marketing research.

Children and young people
DM Article 3
Direct marketing activities addressed to children and young people should not exploit their credulity or inexperience. No direct marketing activity should be undertaken which is likely to harm children mentally, morally or physically, or to strain their sense of loyalty vis-à-vis their parents or guardians.

Sellers and operators offering products to children should:

• identify material intended only for adults;
• encourage young children to obtain their parent's and / or guardian's permission before the children provide information, and make reasonable efforts to ensure that parental consent has been given;
• provide information to parent and / or guardians about ways to protect their children's privacy.

Communication of the message

Decency and suitability
DM Article 4
Those using direct marketing techniques should take particular care, given the variety of audiences, to ensure that their messages will not be seen as indecent, offensive or inappropriate. Such messages should conform to prevailing standards of decency.

Transparency
DM Article 5
Whenever information is gathered for direct marketing purposes, this should be made clear to the relevant consumers.

Whenever an offer is made, all the commitments undertaken by the seller, the operator and the consumer should be made clear to consumers, either directly or by reference to sales conditions av ailable to them at the time of the offer.

Print which by its size or other visual characteristics is likely to affect substantial the legibility and clarity of the offer should be avoided.

Wherever appropriate a simple statement of the essential points of the offer should be clearly displayed in the promotional material. The scattering of essential points of the offer throughout promotional material should be avoided.

Presentation
DM Article 6

1. The presentation of the product should not contain any written, audio or visual element which directly or by implication is likely to mislead consumers, in particular with regard to such characteristics as nature, composition, method and date of manufacture, range of use, efficiency and performance, quantity, commercial or geographical original and environmental impact.
   When the presentation of an offer includes illustration of products not included in the offer, or where additional products need to be purchased for the consumer to be able to use the product on offer, this should be made clear in the offer.
   
   
2. The terms of any offer made should be clear, so that the consumer may know the exact nature of what is being offered.
   
   
3. High-pressure tactics which may be construed as harassment should not be used.
   Any advertisements should be framed in strict accordance with the ICC International Code of Advertising Practice.

Comparisons
DM Article 7
The presentation of an offer containing comparisons should be so designed that the comparison is not likely to mislead, and should comply with the principles of fair competition and with the protection of trade marks.

Points of comparison should be based on facts which can be substantiated and should not be unfairly selected.

Testimonials
DM Article 8
The presentation of the offer should not contain or refer to any testimonial or endorsement unless it is genuine, verifiable, relevant and based on personal experience or knowledge. Testimonials or endorsements which have become obsolete or misleading through passage of time should not be used.

Guarantees
DM Article 9
Offers may contain the word "guarantee", "guaranteed", "warranty", or "warranted" or words having the same meaning, only if the full terms of the guarantee as well as the remedial action open to the purchaser are clearly set out in the offer, or are available to the purchaser in writing. The name and address of the guarantor and the duration of the guarantee should be clearly stated.

Right of withdrawal
DM Article 10

1. Where consumers have a right of withdrawal sellers should inform them as to the existence of this right, how they obtain further information of this right, and how to exercise this right.
   
   
2. Sellers who undertake to supply products to the consumer on "free examination", "free trial", "free approval" and the like should clarify in the offer who will bear the cost of returning such goods and should make the return as simple as possible.
   Any time restriction for the return should be clearly disclosed.

After-sales-service
DM Article 11
When after-sales service is offered, details of the service should be included in the guarantee or stated elsewhere in the offer. If the consumer accepts the offer, information should be given on how the consumer can activate the service and communicate with the service agent.

Identity of the seller
DM Article 12
The identity and details of where the sellers and / or operators may be contacted should be given in the offer, so as to enable the consumer to communicate directly and effectively with them. At the time of delivery of the product, the seller's full name, address and telephone number should be made available to the consumer.

Fulfilment of orders
DM Article 16
Orders should be fulfilled within 30 days from the date the order is received from the consumer, unless otherwise stipulated in the offer. Sellers or operators should inform the consumer of any undue delay as soon as it becomes known to them. In such cases, any request for cancellation of the order by the consumer should be granted, even when it is not possible to prevent delivery, and the deposit if, any, should be refunded immediately.

Substitution of products
DM Article 17
If a product becomes unavailable for reasons beyond the control of the seller or the operator, another product may not be supplied in its place unless the consumer is informed that it is a substitution and unless such replacement product has materially the same or better characteristics and qualities, and is supplied at the same or a lower price. In such a case, an explanation of the substitution and of the right to return the substitute product at the seller's cost should be given to the consumer.

Return of faulty and damaged products
DM Article 18
The cost of return of faulty products damaged other than by the consumer is the responsibility of the seller, provided notice is given by the consumer within a reasonable period of time.

Prices and credit terms
DM Article 19
Whether the offer is on a cash or instalment basis, the price and terms of payment should be clearly stated in the offer together with the nature of any additio nal charges (such as postage, handling, taxes, etc.) and, when possible, the amounts of such charges.

In the case of sales by instalment, the credit terms, including the amount of any deposit or payment on account, the number, amount and periodicity of such instalments and the total price compared with the cash price, if any, should be clearly shown in the offer.

Any information needed by the consumer to understand the cost, interest and terms of any other form of credit should be specified either in the offer or when the credit is offered.

Unless the duration of the offer and the price are clearly stated in the offer, prices should be maintained for a reasonable period of time.

Payment and debt collection
DM Article 20
The procedure for payment and debt collection should be such as to avoid undue inconvenience to the consumer, making due allowance for delays outside the consumer's control.

Debtors should not be approved in an unreasonable manner and debt collection documents which might be confused with official documents should not be used.

Premium rates
DM Article 21

1. When promoting a premium rate number, such as an online message or telephone number, the seller or operator should state that the number is a premium rate and what the rate is, either as cost per minute or as cost per call. Sellers and operators should take particular care to ensure that the consumer not be kept waiting an unreasonable time in order to fulfil the purpose of the call.
   
   
2. When answering a call, a seller or operator should always begin by informing the consumer that it is a premium rate call. This should be done at the time the consumer is about to access the message or online service.

Collection of data - marketing research
MR Rule A. 1
Marketing research must always be carried out objectively and in accordance with established scientific principles.

The Rights of respondents
MR Rule B. 3
Respondents' co-operation in a marketing research project is entirely voluntary at all stages. They must not be misled when being asked for their co-operation.

MR Rule B. 4
Respondents' anonymity must be strictly preserved. If the Respondent on request from the Researcher has given permission for data to be passed on in a form which allows that Respondent to be personally identified:

1. the Respondent must first have been told to whom the information would be supplied and the purposes for which it will be used;
2. the Researcher must ensure that the information will not be used for any non-research purpose and that the recipient of the information has agreed to conform to the requirements of this Code.

MR Rule B. 6
The Researcher must take special care when interviewing children and young people. The informed consent of the parent or responsible adult must first be obtained for interviews with children.

MR Rule B.7
Respondents must be told (normally at the beginning of the interview) if observation techniques or recording equipment are being used, except where these are used in a public place. If a Respondent so wishes, the record or relevant section of it must be destroyed or deleted. Respondents' anonymity must not be infringed by the use of such methods.

MR Rule B. 8
Respondents must be enabled to check without difficulty the identity and bona fides of the Researcher.

MR Rule C. 15
When acting in their capacity as Researchers the latter must not undertake any non-research activities, for example database marketing involving data about individuals which will be used for direct marketing and promotional activities. Any such non-research activities must always, in the way they are organised and carried out, be clearly differentiated from marketing research activities.

Collection of data - non-marketing research
DM Article 22

1. When collecting personal information from individuals, the seller and / or operator should ensure that the data subject is aware of the following:
   • the identity of the data controller;
   • the purposes of the collection;
   • any intention to transfer the data to third parties.

   The data subject can be informed of this in the context of the collection, by a separate notice or message, contract, or by adequate collective notices.

2. When it is not possible to inform the data subject at the time of the collection, this should be done as soon as possible thereafter.

Use of data
DM Article 23
Personal data collected in accordance with this Code shall be:

1. collected for specified and legitimate purposes and not used in any manner incompatible with these purposes;
2. adequate, relevant and not excessive in relation to the purpose for which they are collected and / or further processed;
3. accurate and kept up to date;
4. preserved no longer than is required for the purpose for which the data was collected or further processed.

The data controllers should take reasonable steps to ensure that th eir processors and third parties respect the data protection principles of this Code. Sales agents of the data controller are not considered third parties.

Rights of the data subject
DM Article 24
Appropriate measures should be taken so as to enable consumers to exercise the following rights:

• to opt out from marketing lists;
• to require that their data is not made available to third parties;
• to rectify incorrect data which is held on them.

Preference services and suppression of data
DM Article 25

1. Sellers and / or operators should comply with the request of data subjects that they not receive addressed mail, commercial telephone calls, faxes, e-mails or other addressed online communications by means of a preference service, in-house suppression file or by other means.
   
   
2. Names and other personal information contained in preference service suppression files should be used only to suppress matching information on promotional marketing lists which are to be used for making unsolicited marketing approaches. Names found in preference service lists should not be rented, sold or exchanged, except for suppression purposes.
   
   
3. When faxing or e-mailing or using any other form of online communication to consumers, particular care should be taken to reduce to the minimum any inconvenience likely to be caused by unwanted messages.

Content of the call
DM Article 29

1. Outbound calls
   When tele-operators call a consumer, they should promptly:
   • state the name of the seller they represent;
   • unambiguously state the purpose of the call;
   • politely terminate the call when it is apparent that the receiver of the call is not competent, or does not wish to take the call or is a child (unless the tele-operator receives permission from an appropriate adult to continue).
     
     
2. Inbound calls
   When tele-operators receive calls from consumers, tele-operators should state the name of the seller they represent.
   
   
3. All calls
   Before closing the call the tele-operator should ensure that the consumer is informed and aware of the nature of any agreement reached, and of what steps will be taken following the call.
   Where a sale is purported to have been made, a minimum requirement is that consumers should be aware of the essential points of the contract which should include as a minimum:
   • the main chara cteristics of the goods or services;
   • where goods or services are to be supplied permanently or for an ongoing period the minimum duration of the contract;
   • the price of the goods or services including any additional costs (e.g. delivery costs, taxes to be charged by the seller);
   • the arrangements for payment, delivery or performance; and
   • any right of withdrawal that they may exercise.

   
   Where the call leads not to a sale but to a further contact by a seller the teleoperator should inform the consumer of a subsequent contact, and where information supplied by the consumer may be used for any non-obvious purpose the tele-operator should make this fact, and the purpose, clear to the consumer in accordance with article 22 (of DM Code).

Reasonable hours
DM Article 30
Outbound calls should, unless expressly otherwise requested, only be made during hours which are generally regarded as reasonable for the recipient.

Right to written confirmation
DM Article 31
Where an order has been placed following a call, the consumer has the right, in good time and at the latest at the time of delivery of the goods or at the commencement of the delivery of the services, to confirmation in writing or durable format of the detailed terms of the contract. Confirmation should include at least the information specified in article 10 (right of withdrawal) and 12 (identity of the seller) as well as any other information specified in article 4 to 22 of this Code, as and where appropriate.

Monitoring of conversations
DM Article 32
The monitoring, including taping, of telephone conversations made for telephone marketing purposes should be conducted only with appropriate safeguards, in order to verify the content of the call, to confirm a commercial transaction, for training purposes and for quality control. Marketers should ensure that the tele-operator is aware of monitoring; and that any taped recorded conversations are not played to a public audience without the knowledge of both parties.

Unlisted numbers
DM Article 33
Consumers with an unlisted number should not knowingly be contacted for direct marketing purposes, other than when the number was supplied by the consumer to the sellers or operators.

Use of automatic dialling equipment
DM Article 34

1. Where a predictive dialler is used, when a tele-operator is unavailable to take the call generated by the dialler, the equipment should abandon the call and release the line in not more than one second.
   
   
2. Where other automatic dialling equipment is used, it may be used to contact a consumer only where the call is initially introduced by a tele-operator or where the consumer has preciously agreed to receive such calls without tele-operator intervention.
   
   
3. Neither predictive dialler nor any other automatic dialling equipment may be used unless the equipment immediately disconnects when the consumer hangs up. Dialling equipment should release each time before connecting to another number.

Responsibility - direct marketing activities
DM Article 36

1. The prime responsibility for all aspects of direct marketing activities, whatever their kind or content, always rests with the seller.
   
   
2. Those taking part in the planning, creation or execution of any direct marketing activity have a degree of responsibility commensurate with their position for ensuring the observance of the Code.
   
   
3. Thus in addition to the sellers the Code should be duly observed by:
   • operators or data controllers, or their subcontractors, who contribute to the activity or communication;
   • publishers, medium-owners or contractors who publish, transmit or distribute the offer to any other communication.

Responsibility - marketing research activities
MR Rule 29
It is recommended that Researchers specify in their research proposals that they follow the requirements of this ICC/ESOMAR International Code and that they make a copy available to the Client if the latter does not already have one.

Respect of self regulatory decisions
DM Article 38
No seller, operator, publisher, medium-owner or contractor should be party to the implementation of any direct marketing activity or to the publication or distribution of any communication which they know to have been found unacceptable by the appropriate self-regulatory body or available dispute-resolution mechanisms.

Effect of subsequent redress for contravention
DM Article 39
While subsequent correction and appropriate redress according to available dispute-resolution systems for a contravention of the Code are desirable, they cannot excuse the original contravention of the Code.

Substantiation
DM Article 40
Substantiation of verifiable facts needed to establish compliance of the direct marketing activity with the Code should be available and be produced when called for by any appropriate self-regulatory body.

Implementation
DM Article 41
This Code is to be applied nationally and internationally, and should be the basis for the decisions by bodies set up for the purpose of self-regulation.
Any request for interpretation of the principles contained in this Code should be submitted to the ICC Code Interpretation Panel.*

*	FOOTNOTE: See the Terms of Reference of the ICC Code Interpretation Panel - www.iccwbo.org

Copyright June 2001