HomeInsightsPhone-paid Services Authority publishes final version of its guidance on Direct Buy Marketing following consultation

The PSA says that more providers are now using Direct Buy Marketing, which is the direct placing of adverts via major online platforms and which provides greater promotional control for the provider of the service than, for example, affiliate marketing. Although this model may be less susceptible to risk, it does present some challenges. For example, some consumers, particularly children, are unknowingly engaging with phone-paid services via this type of marketing.

While there has been a significant reduction in the prevalence of ads for phone-paid services appearing in children’s content, the PSA said there was still an opportunity to further reduce the risk of consumer harm. Therefore, the PSA developed and consulted on a new Annex to its Digital Marketing and Promotions General Guidance specifically relating to Direct Buy Marketing.

The PSA received one response to the consultation. The response said that while most Direct Buy Marketing traffic was via Google Ads, the Annex was overly focused on Google when there were also other platforms that should be referenced. The response suggested that the Annex should make greater reference to the principles of Direct Buy Marketing advertising controls.

The PSA agreed that the Guidance should be clear that effective Direct Buy Marketing uses techniques such as targeting and exclusion, and that the way these techniques are used will vary across different platforms. It has amended the text accordingly. In addition, that PSA has clarified that Google is currently the most commonly used platform, but that there are also others.

The ASA also made amendments to the expectations on Level 1 providers, taking a more proportionate approach, and to the Due Diligence section to include company registers in territories other than the UK. To access the Annex on Direct Buy Marketing, click here.