Question

Sharesies is the first financial company to take the B Corp certification in New Zealand. As a Certified B Corporation, Sharesies needs to operate at the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. 3a) Sharesies has been approached by an employee of a recently closed investment firm and offered for purchase a list of clients from that firm that includes their email addresses. Sharesies is considering whether or not to use the list to promote their business. Explain what New Zealand law Sharesies need to follow when considering using email lists obtained from other companies and how it applies to this specific situation?

Answer 1

Answer:

New Zealand’s rules regarding email marketing are very clear. Set out in the 2007 Unsolicited Electronic Messages Act and further explored in the Department of Internal Affair’s (DIA) Anti Spam regulations, there is no reason to fall foul of the law when it comes to email marketing in New Zealand.

The 2007 Act makes it clear what is permitted and what is not for email marketing. Primarily, the focus falls on permission. Unsolicited emails are strictly forbidden, tallying entirely with DIA’s definition of spam.

Despite the clarity of wording, there remain a few legal grey areas.

Whilst the use of purchased email registers or stripping software is not permitted, without contradiction (these are specifically legislated against within the 2007 Act), there remain questions over active or passive consent. The simplest way to differentiate between active and passive consent is through the transaction page tick box. Tick to receive or untick to receive. Both are versions of consent. However, proving consent relies entirely on the sender, and without a clear consent from the recipient, the law will always find in favour of the recipient.

The second requirement for all email marketing in New Zealand is a functional unsubscribe link. All messages must provide the opportunity to unsubscribe from all future electronic communications. The unsubscribe function, once activated, removes any previous consent to receive electronic communications. There is a five day grace period, allowing for emails that have already been designed and uploaded into sending software to be sent without potential for prosecution. Any email marketing sent after the five day period will be deemed to be illegal. The unsubscribe function must be clearly and conspicuously included within each email, and there may be no financial penalty for doing so.

Thirdly, each communication must clearly show the senders contact information. This not only means the inclusion of a working contact address, but it must also name the person that authorized the sending of the email. This individual must be physically in New Zealand, or a business that acts within New Zealand at the time of use.

As per the New Zealand's Law Sharesies can not use purchased email registers. Before use the email registers Sharesies must get consent from recipient. However, proving consent relies entirely on the sender, and without a clear consent from the recipient, the law will always find in favour of the recipient.

Also he must follow, remaining legal grey areas which are mentioned above.