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It's only a matter of weeks until the UK imposes strict new controls on the use of electronic marketing, prompted by European legislation.

Yet e-list buyers remain uncertain about the implications and are increasingly fearful of breaching the law.

Known as the Privacy and Electronic Communications Directive, the EU law comes into effect on 11 December and is designed to protect consumers and businesses from unsolicited electronic communication.

The final wording of the law's UK implementation was published just as Direct Response went to press (see page 5). The kernel of the law is that marketing via the internet, fax, automated calling systems, e-mail and SMS will be permitted only if recipients have given prior consent (ie opted in) to receive communication. The law applies equally, whether communicating directly to your own customer database or using a third-party list.

Buyers of third-party e-data must ensure the provenance of e-data meets the rules laid down in Brussels. So, to avoid falling foul of the law, it's worth keeping in mind a few words of advice when shopping for lists.

First and foremost, when buying e-data compiled before the introduction of the legislation, make sure individuals on such lists have been given every opportunity to re-confirm their wish to receive electronic marketing.

If the data has been collected via a website, log-in and check out the registration process to ensure the opt-in process is straightforward and explicit.

An example of best practice is Autotrader Direct, which, in partnership with list manager HLB, is asking customers to re-confirm via a new, three-tiered, opt-in registration page on its website - www.autotrader.com.

This gives consumers a clear choice of opting for one-to-one e-mail marketing from Autotrader, postal direct mail, e-mail marketing from a third-party, or all three.

Re-confirmation means losing large amounts of data, because customers are likely to automatically opt out if given the choice, acknowledges Autotrader Direct head of e-commerce Jason Biffin. But it will foster greater transparency, which can only benefit the marketing profession.

"We ignore the fact that data might be lost, because we want to ensure our users receive the information they have signed up to," he says. "The volume of names on our database will go down, but those that are left will be highly responsive."

Information inflation

While it's accepted that the volume of available data on the market will decrease after 31 October, HLB list sales and marketing manager Jonathan Longden believes this will not, as clients fear, trigger a sharp hike in e-list prices.

"E-mail list prices are generally falling and the EU legislation will not affect this trend. But some list owners will wish to charge a premium for their newly opted-in e-mail data. This is justified when you consider the increased quality and responsiveness of the list," he says.

EU businesses will be forbidden from using opt-out data originating anywhere else in the world. Outside the EU, data collection is predominantly opt-out. So, although cheap lists from major exporters like the US may seem attractive, the chances are they will not meet EU standards.

Similarly, clients should think twice about buying opt-in lists containing a high volume of names compiled over a brief time-span, advises ListLab account director Ben Ennis.

Size matters

"The legislation is going to make lists smaller, not bigger, so it's highly unlikely that any list dealer will have built multi-million name lists in a few months unless the data is opt-out," he says.

With less data available on the market, competition among list-sellers will almost certainly intensify. This, warns Andrew Petherick, head of data sales at e-data owner Mailtrack, could persuade list-owners to over-sell their products.

"Some e-mail list owners stand to ruin their data by over-marketing," says Petherick. "So, when buying, the advice is to check if there's a 'governor', in other words a limit, on the use of names."

In most cases, clients will have no reason to doubt list sellers' integrity.

Mailtrack, for example, insists that its list suppliers sign a contract guaranteeing e-data complies with EU rules.

But there are always exceptions. Unscrupulous list owners may, for example, rig a website registration page with auto opt-in boxes resulting in visitors unwittingly consenting to their data being added to third-party lists.

The advice from PDV eCRM director Nick Fuller, whose business offers free online games to consumers who opt in to third-party marketing, is to always ask plenty of questions of the list seller (see panel, above).

"The crux of the legislation is that customers should know what they are signing up to. If necessary, ask for a copy of the privacy policy to make sure opt-in boxes are not buried in terms and conditions. If the list-seller cannot provide the answers to your questions, then don't buy," says Fuller.

Data owners are launching various initiatives to ensure clients can prospect in confidence. Eurodirect, for example, has unveiled a new e-data pool known as E-mail Exchange. This gives members access to a pool of EU-compliant consumer e-mail addresses from trusted sources. The service will be operational from January 2004, when the pool will have acquired a critical mass of opt-in e-mail addresses.

"By linking e-mail addresses with postal addresses, the service can facilitate multi-channel marketing, providing an integrated data source from which e-mail, direct mail, telemarketing and door-to-door canvassing can support each other," says Eurodirect managing director John Dobson.

Meanwhile, Wegener Business Data is offering an opt-in business-to-business list containing over 186,000 e-mail addresses. The list is appended to PrimeFile Plus, its database of 2.1 million UK companies, allowing clients to select addresses using a number of variables, including financial results, IT installations, postcode or named executive.

"The importance of checking opt-in processes can't be stressed enough," says Wegener commercial director Steve Cook. "If it's ignored, we'll continue to see cowboy lists being sold, leading to poor response rates and the demise of e-mail marketing. After all, this is what happened to fax marketing."

In a move to create greater awareness, the DMA will be exploring the EU Directive at two interactive conferences on the 17 and 26 November.

"This will be a blow-by-blow account of companies' responsibility under the new regulations," says DMA head of interactive media, Robert Dirskovski.

As the legislative deadline of 31 October rapidly approaches, list-buyers must learn to adopt an interrogative approach to e-data shopping. Leaving procurement to chance is a recipe for disaster. With or without such legislation in place, any list owner who is loath to provide information on their opt-in process should be viewed with suspicion. The overriding advice therefore is to question, and then question again.

TOP TIPS: BUYING THIRD-PARTY E-MAIL LISTS

NICK FULLER, PDV

"When buying third-party e-lists you need to ask certain questions of the supplier," Fuller says.

"What is the provenance of the list being offered?

"What is the profile of the names?

"How do consumers opt in?

"Does the opt-in statement comply with the law?

"What guarantees are provided to ensure compliance with the law?"

BEN ENNIS, ListLab

"Think twice about buying opt-in lists containing a high volume of names compiled over a brief time span," Ennis says.

"It's highly unlikely that any list dealer will have built multi-million name lists in a few months. Stick to lists where the names have been opting in over a long period. There are many of these on the market and the data will be of a higher value."

ANDREW PETHERICK, Mailtrack

The new law is likely to have the effect of reducing the availability of e-data, which could persuade list owners to over-sell their products, says Petherick.

"Some e-mail list owners stand to ruin their data by over-marketing it. So, when buying, the advice is to check if there's a 'governor', in other words a limit, on the use of names."