Nuisance Calls Cost Company Record £350,000
The biggest ever fine has been imposed by the Information Commissioner’s Office (ICO) on a lead generation firm that made more than 46m nuisance calls. Nuisance calls are increasingly a matter of significant public concern.
The biggest ever fine has been imposed by the Information Commissioner’s Office (ICO) on a lead generation firm that made more than 46m nuisance calls. Nuisance calls are increasingly a matter of significant public concern.
The £350,000 fine was issued on Prodial Ltd for a serious contravention of regulation 19 of the Privacy and Electronic Communications Regulations 2003. Regulation 19 forbids anyone from transmitting, or instigating the transmission of, communications comprising recorded material for direct marketing purposes by means of an automated calling system – unless the subscriber has previously notified the caller that he consents to it.
What were Prodial’s activities?
The calls, made by the company from a private residential house, played recorded messages relating to PPI claims. Recipients of the calls were targeted repeatedly, even though they had not consented and could not opt out of receiving them.
More than 1,000 individuals complained – with many saying they found the calls distressing, intrusive and annoying, with the calls coming at all times of day and night. A hospital doctor told the ICO that the calls he received interfered with his emergency work. Others reported that the calls persisted despite registering their telephone number with the Telephone Preference Service.
The ICO’s investigation revealed that following the calls, the company sold individuals’ personal information onto claims management companies producing an estimated turnover of close to £1m.
The Information Commissioner described Prodial’s activities as one of the worst cases of cold calling the ICO had ever come across. An aggravating factor in the size of fine that Prodial received was that it obtained a commercial advantage over its competitors by generating leads from unlawful marketing practices
When the ICO become involved, one of the company’s directors placed Prodial into voluntary liquidation and the ICO’s enforcement team is now attempting to recover the fine from the liquidators.
ICO Guidance
Businesses are advised to note detailed guidance published by the Information Commissioner which helps companies understand their legal obligations when carrying out marketing. It explains the circumstances under which they can carrying out marketing by phone, text, and email, as well as by post and fax.
How can we help?
If you have any concerns about your organisation’s marketing campaigns and need expert advice to ensure you comply with the regulations, the experienced commercial solicitors at Herrington Carmichael will provide specialist advice and representation.
Please contact Mark Chapman on 01276 686222 or Matthew Lea on 0118 977 4045