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Guide on Distinguishing Market Research from Other Data Collection Activities GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES ESOMAR WORLD RESEARCH CODES & GUIDELINES GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES ESOMAR WORLD RESEARCH CODES & GUIDELINES GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES All ESOMAR world research codes and guidelines, including latest updates, are available online at www.esomar.org © 2009 ESOMAR. All rights reserved. Last revised March 2009 No part of this publication may be reproduced or copied in any form or by any means, or translated, without the prior permission in writing of ESOMAR. ESOMAR codes and guidelines are drafted in English and the English texts are the definitive versions. ESOMAR WORLD RESEARCH CODES & GUIDELINES GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES ESOMAR WORLD RESEARCH CODES & GUIDELINES GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES CONTENTS 1. Summary 2 2. Defining the distinction 2 3. Key points in the new ICC/ESOMAR Code 4 4. Implications for the activities of research companies and researchers 5 5. Future risk assessment 7 6. Additional advice 7 ESOMAR WORLD RESEARCH CODES & GUIDELINES GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES ESOMAR WORLD RESEARCH CODES & GUIDELINES GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES 1. SUMMARY respondents to allow follow-up, or product offers. The ICC/ESOMAR International Code on Market and Social Research has When part of the intention in conduct- always included a requirement for ing a survey is to pass on identified members to maintain the distinction data to the client to be used for market- between market research and com- ing purposes, it must not be introduced mercial activities such as advertising, to respondents as market research sales promotion, direct marketing and it must follow the legal framework and direct selling. The essence of the established for commercial activities distinction being that researchers have such as direct marketing. no interest in the personal identity of the respondents they question – they Failure to do so puts these projects in do not pass information about identified the same position as those who sell people to their research clients. products or seek money under the guise of doing market research. The This distinction has been essential over inevitable result will be the erosion of the years in avoiding unwanted restric- market research’s distinction and the tions on our access to representative dilution of our defence against unwar- samples. It has helped us to challenge ranted restrictions on our access to the fraudulent activities of those pretend- representative samples of respondents. ing to do market research but whose real intention was to seek money or purchases or compile mailing lists. 2. DEFINING THE DISTINCTION Recent research developments in the area of customer satisfaction research Easy access to samples of respondents or customer relationship management is a fundamental requirement of valid have thrown up some uncomfortable research and a successful market research implications for researchers maintain- industry. On numerous occasions well ing the distinction. It is increasingly intentioned legislators, attempting to common for these projects to have two safeguard personal privacy or protect purposes, the collection of representa- personal data, have proposed laws which tive sample survey data and provision would seriously damage the research to the client of details about individual industry’s access to samples. 2 ESOMAR WORLD RESEARCH CODES & GUIDELINES GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES An example to illustrate the potential years and have challenged potentially threat to our industry was the German damaging proposals. They have suc- situation in 1979/1980. German data pro- cessfully argued that market research tection law requires the written consent has a special status, is different from of individuals from whom personally the many commercial marketing activi- identifiable data is being collected and ties which the legislators intended to stored. Applying this requirement to address, and so should be excluded market research would make telephone from the scope of the legislation. interviewing, in particular, very difficult. The German research industry reached The essential element of this distinction an agreement with the Bavarian Data between market research and other Protection Officer in March 1980 that activities such as advertising, sales market and social research had an promotion, direct marketing, direct effective system of self-regulation and selling, is that market research has no should be exempted from this require- interest in the identity of respondents. ment. Since that time market and social They are selected as representatives researchers in Germany have not needed and their data is used in statistical to obtain written consent from the tabulations to provide insight. The data respondent. about individual identified respondents is confidential and not passed on to the The same threat was in the first draft commissioning organisation. version of the ISDN European Direc- tive that required the written consent Other commercial activities might of individuals before calling them by appear to be similar to market research phone. This requirement was included – they contact people, ask questions because of confusion between market and record the data. However, their research and telemarketing. The final major intention is to discover the per- version has deleted the reference sonal identity of the people they contact to market research as the European and to use the data collected to target authorities took into account ESOMAR’s marketing or sales approaches. explanation of the distinction between market research and telemarketing. This is not an illegal activity in any way. However, as the cost of communica- ESOMAR and the national research tions falls and the ability to contact associations have been vigilant over the large numbers of people increases, 3 ESOMAR WORLD RESEARCH CODES & GUIDELINES GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES legislators have introduced limitations 3. KEY POINTS IN THE in order to prevent fraudulent activity NEW ICC/ESOMAR CODE and to reduce intrusions into personal privacy and nuisance. The revised ICC/ESOMAR Code, issued in 2008, contains several requirements As a result, in many countries the which are relevant to the issue of main- distinction between market research taining the distinction. For the first time and direct marketing and sales activi- the Code includes a clear definition ties is reflected in the legal framework of market research and encapsulates concerning data protection and privacy. within the definition the main distinc- Market research benefits from a more tion of research from other marketing liberal legal framework and is not activities: subject to the same legal restrictions. For example, Market research, which includes social and opinion research, is the systematic • Researchers can approach respond- gathering and interpretation of informa- ents without needing to be invited; tion about individuals or organisations • Researchers do not need to remove using the statistical and analytical from samples those people on “Do Not methods and techniques of the applied Contact” lists for mail and phone; social sciences to gain insight or sup- • Researchers can contact respondents port decision making. The identity of at weekends or in the evening; respondents will not be revealed to the • Research is not considered to be a user of the information without explicit commercial communication. consent and no sales approach will be made to them as a direct result of their Direct marketing and other sales having provided information. activities have a more restrictive legal framework and when ESOMAR Mem- Article 1 (d) restates the requirement bers are carrying out such activities, for members to maintain this distinction they must abide by the requirements as follows: of the ICC Code on Direct Marketing which provides appropriate guidance Market research shall be clearly distin- on such issues. guished and separated from non-research activities including any commercial activity directed at individual respondents 4 ESOMAR WORLD RESEARCH CODES & GUIDELINES GUIDE ON DISTINGUISHING MARKET RESEARCH FROM OTHER DATA COLLECTION ACTIVITIES (e.g. advertising, sales promotion, direct Finally, Article 1 (b) requires members marketing, direct selling etc.). to avoid any actions which might bring the industry into disrepute as follows: Article 7 (c) clarifies the only accept- able circumstances in which personally Researchers shall not act in any way identifiable data can be passed on to that could bring discredit on the market the research client as follows: research profession or lead to a loss of public confidence in it. Researchers shall ensure that respondents’ personal identity is withheld from the client. The researcher may communicate 4. IMPLICATIONS FOR the respondent’s identifiable personal THE ACTIVITIES OF information to the client, unless national RESEARCH COMPANIES provisions require stricter regulations, AND RESEARCHERS under the following conditions: Previous versions of the ICC/ESOMAR i) the respondent has explicitly Code have required research compa- expressed this wish and/or nies, that wish
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