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Marketing Law Conference Review – Part 3

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If you didn’t manage to get along to the Marketing Law Conference last month, we’re going over a few of the highlights in a four part blog series. In our third part we look at recent and upcoming law reform and legislation around apps and social media presented at the conference by Sarah Lee and Shahin Foroughian from Simpson Grierson:

Consumer law reform, now in force covers unfair contract terms, unsubstantiated representations and enhanced commerce commission enforcement powers.

Unfair Contract Terms

Typically: Vary contract; avoid/limit terms of contract; terminate contract; vary the goods and services. Includes competition and promotion T&Cs – Does not matter whether ‘free’ to enter if “intrade”. Unilateral rights to substitute prize/cancel/change and must ensure not mislead as to consumers rights.

Unsubstantiated Representations

  • Need for substantiation – “reasonable basis”for the claim
  • Product claims, brand claims
  • Genuine belief is not enough
  • Subsequent substantiation is not enough
  • What can you do: Substantiation policies

Commerce Commission’s Enhanced Powers

  • New powers
    – Mandatory interview
    – Parking ticket like “infringement notices”
    – Increased fines ($600k per breach for business)
  • What it means for marketers – Increased risk

Apps and Social Media: Privacy Act issues

When designing an app or social media page you must not collect personal details more than necessary, use that data for other purposes and keep it for longer than necessary. It’s also important the app or social media page ensures the information is kept safe (make sure cloud providers are reliable). Specifically with events apps: You must only use for events and destroy after event ends.

Apps and Social Media: Marketing to Children

 

Must exercise care around:

  • Publicly available profile photos
  • In-App purchases
  • ASA Code – high standard of social responsibility
  • Should not promote gambling/gaming
  • Higher PR risks if things go bad

Apps and Social Media: Anti-Spam Act

  • Unsolicited Electronic Messages Act
  • Opt-in Consent (eg. tick box) preferred
  • Brand promotion is also marketing (eg. survey results used for brand promotion)

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