TPS Assured - Thursday 31 October 2013

Introducing TPS Assured: a new standard for responsible telemarketers

Thursday 31 October 2013, 30 Euston Square

♯tpsassured

Background to TPS and TPS Assured

Colin Lloyd, Chairman, TPS Ltd

John Mitcheson

Why we are here and here today…

EU directive 1990’s

- transposition into UK law

Opt – Out prize won for UK

–self regulatory TPS and MPS

–PECR - regulatory TPS from 1999

How has the prize been valued?

Reputational damage from irresponsible telemarketers:

• Flouted regulations

• Ignored DMA telemarketing code

• Irresponsible use of dialers– Silent calls

Resulting in massive: • increase in nuisance calls

• increase in TPS registrations

• increase in complaints

• Intense media interest –Which? – MP’s

• Select Committee on Nuisance Calls.

The stats…

TPS Registrations

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

TPS monthly complaints2010-2013

0

2,000

4,000

6,000

8,000

10,000

12,000

ICO ‘PECR Sept.’13Threat Assessment’

Ofcom silent and abandoned calls

0

500

1000

1500

2000

2500

3000

3500

4000

Dec.'12 Jan. '13 Feb.'13

Mar.'13

Apl. '13 May.'13

Jun.'13 Jul.'13

Complaints

What has TPS done to help

Lobbied OFCOM, ICO, Gov. to robustly apply exsiting sanctions

– Key message from TPS conference delegates

Worked with Telcos’

Continuous Research

Through DMA - lobbied OFCOM re: silent calls issues

- Silent calls regulations

The way forward…

Differentiate responsible telemarketers from regulation breakers

Better compliance

Protect the industry from potential draconian legislation

– EC Directive

– Gov. encourages self-regulation

Protect the livelihoods of the 1000’s of people in telemarketing

Launching today…

John Mitcheson

Introduction to TPS Assured

John Mitchison, Head of Preference Services,

DMA

TPS AssuredWhat is it?TPS Assured is an accreditation scheme for companies that make live outbound sales and marketing calls.

Who is it for?TPS Assured is designed for companies that instigate the making of sales and marketing calls.

TPS AssuredWhy do it?

Confidence in your companies compliance.

Differentiate you business with the TPS Assured logo

Protect your reputation

The Audit Process

Submit Application Form

Handbook, Application Form are available on the website

tpsassured.co.uk

Information Pack

Quotation, Non disclosure agreement, File specification,

Audit guidance document.

The Audit Process

Data Analysis

Data from the dialer is reviewed prior to site visit.

On Site Audit

The audit will take place at the location where the calls are

made.

The Audit Process

Audit Report

Certificate and Logo

Annual review and renewal

TPS Assured

TPS Assuredtpsassured.co.uk

TPS Assured – Case study

Martin Trouhgton, Marketing Director,

Anglian Windows

Anglian Home Improvements TPS AssuredThe Benefits

Telemarketing At AnglianAt Anglian Telemarketing comes in three forms:

1. Inbound Telemarketing

2. Outbound Reactive Telemarketing

3. Outbound Proactive Telemarketing

The Growth of TPSBack in 2003, when the TPS file was approaching 4 million, Outbound Proactive Telemarketing was generating just over £90million in direct sales from 105,000 appointments – 45% of our sales.

The Growth of TPS Approached – 2013 at 18million.

Telecan Sales vs Growth in TPS

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

File

Co

un

t

Sale

Val

ue

(£

)

Financial YearTPS Registered

TELECAN

1. Head in Sand

2. Head in Clouds

3. Head in Hands

4. Hands in Pockets

The Phases of Our Response

How We Manage TelemarketingSimple DilligenceWe control the data distribution very tightly

We invested in a network based call barring solution – they simply cannot call a TPS barred number

We invested in a dialler – then we invested again

We monitor and investigate any abnormality rigorously

We sought other channels principally the internet

Defending against the Risks

To Brand reputation

Of substantial financial fines

Measuring the issue

The Risk To Reputation

It Takes 20 Years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.

Warren Buffett

The Internet is approaching £100m in value to us

The Telemarketing Challenge We Face…

Brand Enhancing?

So calling receptive customers and not those who have opted out is incredibly important to us

Saying it or really meaning it?

Character or Reputation?Be more concerned with your character than your reputation, because your character is what you really are, while your reputation is merely what others think you are.

John Wooden

Who?

Known as ‘The Coach’ in America. Check out his TED Talk ‘the difference between Winning and Succeeding’ – old school but incredibly moving and relevant

Why?

Adhering to TPS is about ensuring your corporate character is one to be proud of in order to protect your reputation

TPS Assured proves you take your character seriously

Why TPS Assured?

Any organisation needs to protect its reputation

Merely signing up to TPS is no longer enough

The environment shifts too quickly – the technology and the rules or ‘best practice’ changes constantly

TPS Assured gives an organisation a serious telemarketing health check

I thought we had it all in hand – network blocking, fierce repercussions for malpractice, clear corporate policy

TPS Assured has just made us better

What did we learn?

That we are good but we can be better

Remember our strapline ‘Raising The Standard’

We weren’t diligent enough on checking upstream Opt In confirmation on bought in data – we just accepted the contract

Our dialler practice can be tightened

Best practice needs challenging – using a dialler on a Sunday? No more than 3 calls a day from a Dialler?

Summary

We were too insular and possibly Smug

TPS Assured has got our head out of the sand

Our reputation is paramount to tomorrows business

TPS Assured is essential to Anglian succeeding in the future

One final thought

Should TPS Assured be compulsory for anyone using a dialler or who has repeated complaints from customer?

Should it be the first step before a fine?

ICO Enforcement Strategy

Steve Eckersley, Head of Enforcement, ICO

Information Commissioner’s Office

Steve Eckersley

Head of Enforcement.

Responsibilities of the ICO

Regulation and enforcement of the Data Protection Act 1998,

the Freedom of Information Act 2000, the Privacy and

Electronic Communications Regulations 2003 (PECR):

• Live Calls

• Automated Calls

• SMS messages.

Unsolicited calls – the threat and scale

The overall threat level of non-compliant marketing activities

remains high:

• Compelling evidence of growing volumes of unsolicited live

and automated telephone calls and SMS texts to UK

consumers.

• Increasing volume of complaints to the regulators, the TPS

and consumer champions.

• Increasing volume of complaints to Mobile Network

Operators (MNOs) via the 7726 reporting tool.

Impact on UK and global consumers.

• National and International problem

• Sliding scale of the harm caused:

90% consider the calls to be inconvenient, annoying, a

cause for concern, a cause of anxiety or a disruptive

irritation.

Vulnerable groups – Distress and harm for people with a

terminal illness or a disability.

The ICO PECR Enforcement Strategy

‘To ensure that the ICO is fully focussed on the PECR

threats and concerns, its investigations and coordination of a

wider range of activities aimed at reducing the threat, reducing

the number of complaints from consumers, protecting privacy

rights of consumers and improving compliance through robust,

effective and efficient regulation’.

PECR Enforcement and Engagement Strategy

ICO enforcement activity split into three tiers of priority and

activities:

Tier 1 – Full investigations leading to disruption and/or

enforcement action.

Tier 2 – Monitoring and Compliance meetings.

Tier 3 – Engagement, Prevention and Education.

Engagement, Prevention and Education.

• Threat based and intelligence led approach.

• Targeted and coordinated activity with other regulators.

• Targeted engagement with Industry and Trade

Associations.

• Stronger and effective self-regulation.

• TPS Assured Service.

What are the ICO doing?

• The ICO has issued 6 Civil Monetary Penalties totalling over

£800,000 for breaches of PECR.

• 2 Notices of Intent issued in October.

• 1 criminal s17 DPA conviction against the Director of First

Financial – 8 October.

• 2 pending s17 DPA prosecutions

• 41 Third party Information Notices issued to CSP’s in

September.

Other current ICO activity.

• Issued new guidance on consent.

• Submitted business case to the DCMS re change in

legislation

• Leading on Op Linden – the data cycle intervention activity.

• Access to the 7726 data.

• Joint regulatory coordination at UK Level

• Joint regulatory coordination at International level.

ICO - current complaints picture

@iconews

Keep in touch

Subscribe to our e-newsletter at www.ico.org.ukor find us on…

/iconews

The Hon. Ed Vaizey MP

Minister of Culture, Communications and

Creative Industries

Q&A

John Mitcheson

Thank you for attending this event.

We welcome you to stay for networking

drinks & canapés.