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Secondly, any company that either collects data outside of the UK or runs pan-European campaigns that involve the transfer of data, needs to be fully abreast of compliance issues across Europe. Given the ongoing eastward expansion of the EU, this in itself is no simple task.

So, it's little wonder that this year's DMA Annual Data Protection Conference, taking place on 10 March at the Queen Elizabeth II Conference Centre in London, is focusing heavily on European issues. Among the speakers are Alastair Tempest, director general of FEDMA (Federation of European Direct Marketing) and Jan Dhont, senior associate at the Brussels-based law firm Hunton & Williams.

UK direct marketers may at times feel frustrated about the data legislation with which they have to comply. But in the context of the rest of Europe, the UK gets off lightly, says Dhont. "The UK has a much more pragmatic regime than other countries. It is the most liberal we know," he says, adding that Mediterranean countries and the emerging eastern European countries have the strictest data policies.

This disparity is the result of the data protection authorities in EU countries interpreting the law differently. It makes collecting or transferring data across borders a minefield. However, there are signs the situation is improving.

This year the country that chairs the Article 29 Working Party (a committee of EU data protection authorities, of which the UK's Information Commissioner's Office is one) has changed from Italy to Germany. The committee meets regularly to discuss and negotiate changes in data protection law. And the fact that Germany is now chairing this committee is significant, explains Axel Tandberg, director of government affairs at FEDMA.

"Germany is a more progressive country in terms of data protection, so it is very good news," he says. "The formation of the Working Party was part of the Data Protection Directive from 1995, so these countries have been meeting for nearly ten years. They know each other and are now starting to trust each other."

A good example of this build-up in trust is the new international data transfer clauses which were approved by the EU in January this year. They come after years of negotiations and essentially establish clauses that make the transfer of data to controllers outside of Europe more flexible and practical for businesses.

Another positive development concerns the harmonising of the notification statements that companies give at the point of data collection. This informs the consumer about how their data will be used. However each country has interpreted the data protection law differently, resulting in divergent practice across Europe.

To tackle this the Article 29 Working Party has proposed using a template approach. If all member countries agree a template for the notice that companies give when they collect data, this could bridge the current inconsistencies.

One company that will be watching these developments closely is Mardev, the list management division of Reed Business Information (RBI). Its global database contains the records of more than 30 million individuals collected through a variety of means, including exhibitions, the RBI website and its portfolio of business magazines.

Zina Manda, sales director at Mardev and chair of the FEDMA List Council is speaking at the Data Protection Conference, along with Alastair Tempest.

She says the twin pillars of the company's data protection policy are notification and fair processing. "Key to the whole thing for us is the method by which you collect the data. It is about being clear and unambiguous.

Then, just as importantly, it is about maintaining absolute integrity about how you use the data," says Manda.

She describes the current situation with diverging European data policies as "causing huge problems", adding that eastern European countries are interpreting the data legislation so harshly that it bears no resemblance to what the Commission intended.

Part of the problem, says Dhont, is that the original data protection laws are quite vague. "It gives the different data protection authorities a lot of latitude to interpret the laws in their own way and give them substance."

It's a bewilderingly complex area but at least the UK's direct marketing industry has the benefit of one of the most liberal data regimes in Europe.

DP CONFERENCE SPEAKERS: 10 MARCH 2005

- Phil Jones, assistant commissioner - A view from the Information Commissioner's Office

- Jan Dhont, senior associate, Hunton & Williams - Recent developments in European data protection

- Alastair Tempest, director general, FEDMA; and Zina Manda, sales director, Mardev - Trends in European data protection for direct marketing

- Mark Roy, chief executive, The REaD Group - Statutory requirements and best practice to keep your data clean.