Anger over plan to extend Do Not Call register to business

Sales and marketing experts have reacted angrily to the Federal Government’s plan to extend the Do Not Call register to cover business numbers.

Senator Stephen Conroy announced the plan in last night’s budget, setting aside $4.7 million over four years to fund the changes. Conroy expects to introduce new legislation into Parliament later this year, following a period of community consultation.

“The changes announced tonight respond to the productivity and privacy concerns of those previously excluded from the register,” Conroy said in a statement.

“These will require legislative amendment and will make allowance for legitimate business-to-business telephone activity.”

A spokeman for Conroy said this morning that the new rules are aimed at stamping out the worst kinds of telemarketing. He says legislation will contain a “flexible mechanism” to allow “everyday phone calls that are a legitimate part of the business process”.

But Rob Edwards, chief executive of the Australian Direct Marketing Association, says the idea of defining legitimate and illegimate prospecting is ridiculous and says he is “flabbergasted” by the announcement. 

Edwards claims the decision will cost jobs. 

“I am somewhat perplexed by the claim that the Government is trying to protect jobs when this will have a significant effect on the contact sector and all business-to-business selling. The ability for businesses to contact other businesses to sell products and services is crucial to this economy.”

SmartCompany blogger and sales and marketing consultant Sue Barrett has described the plan as an “awful idea” and is concerned it will remove a legitimate prospecting tool used by a huge number of SMEs.

“If you exclude people from being able to making prospecting phone calls, we are going to shut down business.”

While Barrett acknowledges that some irresponsible telemarketing firms do pester businesses with blanket calling strategies, she believes the vast majority of SMEs call prospects in a more targeted manner. She is calling for detailed analysis to determine exactly how many marketing calls received by businesses are legitimate and how may are “pest-type calls”.

“This is a knee-jerk reaction and we need reasoned analysis. The overwhelming majority of businesses need to be able to prospect.”

She also suggests that businesses need to think very carefully about putting themselves on the Do Not Call register, as they may be locking themselves out of valuable strategic alliances.

“Those that put their name on it are limiting their business networking. It will absolutely kill business-to-business transactions.”

Edwards says Australia should learn a lesson from the introduction of a business Do Not Call register in Britain four years ago.

“It’s been an unmitigated disaster. The very businesses they were trying to protect have now found they cannot make calls to other businesses.”

Under the British scheme, businesses wanting to call other businesses must pay to access the register, ramping up marketing costs for SMEs.

More budget 2009 coverage:

• Budget 2009: Small business tax break boosted from 30% to 50%
• Budget 2009: Exporters get extra funding
• Budget 2009: Do Not Call register expanded
• Budget 2009: $22 billion for infrastructure in budget
• Budget 2009: First home owner grant extended for three months
• Budget 2009: High and middle-income earners hit by changes to private health insurance, super
• Budget 2009: Innovation spending boost, but new R&D tax breaks delayed
• Budget 2009: Key budget measures at a glance
• Budget 2009: Holiday shack attack
• Budget 2009: Funds for textile, clothing and footwear sector