A leading commercial law firm has warned that new European data protection regulations could prevent many UK small firms from marketing their products altogether.
Under the EU electronic communications directive, to become UK law in October, companies wishing to send unsolicited direct marketing e-mail messages will require prior consent from the recipient.
Businesses will also be able to block cold callers by registering with the Telephone Preference Service (TPS), currently only available to residential users.
But Reynolds Porter Chamberlain (RPC) warned that SMEs would lose out under the legislation, because it would cut off a cost-effective marketing channel. "Small companies do not have the option of communicating with their customers through TV or billboard advertising. They tend to rely exclusively on telephone and e-mail marketing to drive sales and growth," said RPC's Sarah Sherlock.