UK Gambling Commission: New Rules to Take Place Oct. 31

New rules from the UK Gambling Commission are to take effect on October 31. The authority has vowed to “crackdown on operators who don't treat consumers fairly.” What does that EXACTLY imply? Let’s take a look at the new LCCP (license conditions and codes of practice) provisions in a bit more detail.

Socially Responsible Marketing

Gambling products and services are to be marketed in a socially responsible manner, according to the new rules. This specifically means that all licensees must comply with the advertising codes of practice issued by the Committee of Advertising Practice (CAP) and the Broadcast Committee of Advertising Practice (BCAP). For the media not covered explicitly, licensees should keep in line with the principles included in the codes of practice “as if they were explicitly covered.”

All licensees should follow relevant industry codes of practice on advertising, particularly the Gambling Industry Code for Socially Responsible Advertising.

No Misleading Actions or Omissions Allowed

Licensees are to ensure that their marketing communications, invitations to purchase (within the meaning of the Consumer Protection from Unfair Trading Regulations 2008 and advertisements do not involve “misleading actions or misleading omissions.” Licensees must further make certain that all “significant conditions” applying to marketing incentives are provided “transparently and prominently” to consumers. In case of online marketing, information about the significant conditions must be displayed in full, and “no further than one click away.”

Direct Electronic Marketing Not Allowed

Unless explicitly permitted by legislation, consumers must not be contacted with direct electronic marketing without their specific consent. Whenever a consumer does get contacted, they must be granted an opportunity to withdraw their consent. Should they choose to do so, the licensee must ensure the consumer is not contacted with direct electronic marketing thereafter.

“We consider that this provision and its interaction with other licensing requirements sets out a clear and robust means of addressing failings which arise from licensees’ arrangements with third parties, including marketing affiliates. We therefore have no plans to introduce a licensing regime for marketing affiliates. We encourage licensees and the affiliate industry to continue working together to raise standards,” reads the document.

Licensees to Be Held Responsible for Actions of Third Parties

Changes to the LCCP explicitly state that licensees are responsible for the actions of third parties “with whom they contract for the provision of any aspect of the licensee’s business related to the licensed activities.” The terms on which licensees contract with third parties require the third party to conduct themselves as if “they were bound by the same license conditions and subject to the same codes of practice as the licensee.”

If the third party is found to be in breach of contract, the licensee must terminate the contract promptly.

Remote licensees must ensure that the third parties who provide user interfaces comply with the Commission’s technical standards for remote gambling systems.

Easier to Take Action

The changes will simplify the crackdown on gambling businesses that break the advertising rules. Companies will be held responsible for advertising failings by third party affiliates. Breaches of consumer law will be more quickly addressed. Businesses will have to introduce better complaints processes, including an eight-week deadline for the resolution of complaints. Finally, firms engaging in sending spam emails will be held responsible for it.

Source:

“WATCH: New rules that better protect consumers come into force from 31 October, here's what you need to know”, gamblingcommission.gov.uk, October 22, 2018.