New DTI proposal will restrict SME’s from gaining new business.

The DTI has issued a draft proposal which will allow companies to register with the Telephone Preference Service to block unsolicited sales from being received. This will stop many companies from gaining new business.

At present the Telephone Preference Service (TPS) is for residential subscribers only and is there to stop companies making unwanted sales calls to people at their home address. The system has worked well for a number of years and currently around 3m telephone subscribers are registered. The new proposal is to remove the barriers and allow companies to register as well.

This will have a serious impact, particularly with smaller companies who rely on telemarketing to bring them new customers. If the proposal becomes law, all companies will have to review their marketing strategies, particularly if large numbers of businesses decide to register.

Whilst the existing law has worked well for residential telephone subscribers who answer the phone at home for instance, however most businesses have receptionist and switchboard operators who are able to screen sales calls, so B2B “cold calling” must surely be considered differently from calls direct to home numbers. Furthermore, most B2B calling is carried out during the working day and is therefore far less intrusive than sales calls at home in the evening

If the proposal is accepted, companies will also have to bear the additional cost of screening their databases once a month to ensure that those businesses that register for this call protection are removed and not subsequently contacted. The current fine for non compliance is £5000.

If you would like to make your voice heard then write to info@dma.org.uk

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Author: Nigel Blight, T2D Group
Date: 10 June 2003