Proposed changes to the EU Data Protection Directive are likely to drive up the cost of email marketing, according to industry sources, which claim the tougher new rules will make it harder and much more expensive for businesses to collect information.
The shake-up is being overseen by EU Justice Commissioner Viviane Reding and the German Consumer Protection Minister Ilse Aigner. It has already sparked concerns in the UK, with both the data watchdog and Culture Minister Ed Vaizey claiming some proposals will be unenforceable.
Although the UK’s Data Protection Act already requires companies to seek permission to use personal information, in practice this may consist of just getting individuals to select a box saying they agree to a long list of terms and conditions.
Alan Calder, chief executive of Cambridge-based consultancy IT Governance, said the new regulations will mean companies have to seek more explicit and informed consent when collecting and using customers’ personal information.
“It is already hard to buy email lists across mainland Europe. They are expensive and they are difficult to put together,” Calder said. “That means a key area of digital marketing becomes much harder. It will be more expensive for organisations to ensure individuals can have their information forgotten.”
But Calder said there are benefits to the new rules: they will clarify the regulations for doing business across Europe, and establish minimum standards of consumer protection.
“There is good and bad in what’s being proposed,” he said, “but there is a danger that the good stuff will be outweighed by the bureaucratic, restrictive approach.”
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