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E-commerce and the law

The Privacy and Electronic Communications Regulations are enforced by the Information Commissioner's Office (ICO). If the Information Commissioner finds a business to be in breach of the Regulations an Information Notice requesting further information, or an Enforcement Notice will be issued. A fine may be imposed for breach of an Enforcement Notice. Criminal sanctions may also be imposed.

All of these actions can damage the reputation of your business and adversely affect the goodwill of your customers. So, if you use electronic communications as a marketing tool, you should ensure that each communication is clearly identifiable as relating to the advertising or marketing of a product.

This means that any commercial communication sent by email or text message should be clearly identifiable as such through its header - other required information can then be set out in the main body of the communication.

Electronic communications as a marketing tool should also:

  • identify the person on whose behalf it is sent
  • clearly identify any promotional offer - including any discount, premium or gift - and any conditions that must be met to qualify for it (these must be easily accessible, clear and unambiguous)
  • provide the recipient with 'opt-out' rights

You should obtain prior individual consent from your customer through them 'opting in', though there are some limited exceptions for existing customers.

Subjects covered in this guide

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