Database practice: Refer a friend schemes

Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.

Referring a friend is essentially a third party data transfer and, according to the Code, carries opt-in and opt-out requirements (dependent on the media). The ASA has not investigated complaints about unsolicited marketing in which the complainant’s data were given to the marketers by a friend but would expect claims that “your friend passed on your details to us” in unsolicited direct mailings to be genuine and verifiable. The ASA would also expect marketers to run the names and contact data they are given against the relevant suppression file. As ever, the burdens for electronic marketing are heavier. The CAP Help Note on Mobile Marketing states “Explicit consent must be given by consumers themselves and not by others on their behalf” (exceptions apply when marketing to children).

For example, if a marketer (‘A’) asks consumers with whom he has legitimate contact (‘B’) for the e-mail address or SMS number of a friend (‘C’), he should satisfy himself that ‘C’ is happy to receive them. ‘A’ should ask ‘B’ to confirm that ‘B’ has the consent of ‘C’. ‘A’ should check ‘C’s’ data have not been suppressed. ‘A’ should be entirely transparent and inform ‘C’ how and when he obtained ‘C’s’ data if requested (from ‘B’). It remains ‘A’s’ responsibility to ensure compliance with the Code.

Under the Code, we understand that it is likely to be acceptable for marketer ‘A’ to ask ‘B’ merely to confirm that he has ‘C’s consent to pass on ‘C’s data to ‘A’, instead of providing evidence of that consent from ‘C’ at the initial stage. ‘A’ cannot incentivise ‘B’ to provide ‘C’s e-mail address or SMS number because that is likely to mean that ‘C’s consent is unlikely to have been freely given.

‘A’ must offer ‘C’ an unsubscribe/opt-out from receiving unsolicited marketing communications via post or telephone and a subscribe or opt-in to receive unsolicited direct marketing via e-mail and or SMS.

Marketers should read the ICO’s Guidance for marketers on the Privacy and Electronic Communications (EC Directive) Regulations 2003 Part 1: Marketing by electronic means which is available from ICO website. 

In 2006, a marketer was unable to show that he had complied with the Code’s requirements to obtain explicit consent for e-mail marketing communications. The complainant received an e-mail, from a website reuniting friends, claiming that “a friend” had passed the complainant’s details to the website. But, because the marketer refused to reveal the name of the friend, citing the right to anonymity, the ASA concluded that he had provided no evidence to show that effort had been made to verify the complainant was happy to be contacted (Robert Billington, 1 February 2006).

Last modified : 29 June 2010

AdviceOnline Database

Sign up

Keep up-to-date with the latest news and advice on how to comply with the rules

Sign up

Already registered? Log in

Request Bespoke Copy Advice

From free single issues enquiries, through to premium services such as ultra-fast turnaround response enquiries and full Website Audits, the Copy Advice team can fulfill all of your compliance advice needs.

Request Bespoke Advice

Watch Digital advertising webcast

Watch the recording of the Digital remit training seminar. All you have to do is login or sign up to CAP Services if you are not already a registered user.

Watch Digital webcast

Watch new Advertising Codes seminar

Watch the recording of one of the General Overview of the new Advertising Codes training seminar. All you have to do is login or sign up to CAP Services if you are not already a registered user.

Watch webcast

Help notes

Comprehensive guide to the interpretation of the rules on a sector or issue.

Help Notes

FAQs

Have you got any questions about Copy Advice? Here are some frequently asked questions about the service provide.

Visit FAQs section

Committee of Advertising Practice Ltd, Mid City Place, 71 High Holborn, London WC1V 6QT  |  Copyright © 2012 CAP