Is our company breaking the law?
 

A while ago our company looked into buying another similar company within the same industry. While we were considering the purchase we were given a complete list of names and addresses of people this company dealt with.

Just recently, events have occured within the industry which mean this company has major problems and is temporarily unauthorised deal with any of its customers. With this in mind we want to send generic mailshots offering our services to the people on the lists we received.

By doing this are we breaking any laws - such as data protection?

yes mate it will be covered by the data protection act, it will also be seen that you dont "own" that information. its adodgy legislation. look into v carefully!

jamo

I would also imagine that your company signed a non-disclosure type agreement with the other party, so may fall foul of that.

I think it is safe to say you shouldn't be using those lists for any other purpose than for due diligence of the company that was to be purchased. Something will almost definately have been signed to that end.

It is also likely that these lists should have been destroyed by now as they are no longer needed.

No non-disclosure agreements were ever signed, they were just given to us to show the extent of said companys' list of customers. The purchase never went ahead for a number of reasons and we have never used the lists before. However, the customers are left in the lurch while this company sorts itself out.

The other alternative is to take postcodes from the postcode book/phone book and mailshot certain areas in total rather than specific people.

Its unethical at the least, but could be illegal if you have signed an NDA as mentioned above or if you have entered into any other agreement whilst doing Due Diligence activities with the company to be purchased, or if the documents are marked confidential etc.

Put yourself in a customer's shoes...

Would you be happy to be sharked in such a way? Would you want to do business with such a company?

Put yourself in third party's shoes who are in trouble...

Someone has nicked your data for financial gain.

Put yourself in Receiver's shoes (if it goes to that)

You have stolen one of the most valuable assets of the company.

I personally think your company would be in the wrong to use this, but what do I Know :D

Cheers,
Nick.

cant see the problem myself, for one there is no guarantee that the DPA will cover this and two how enforceable is it? as for unethical its no different to someone cold calling or cold mailing if you dont reveal the source of the information how are they to know? If it is for the *possible* benefit of the customer Im sure they wont feel cheated and if it was a one off mail shot what harm can it do? list brokers sell lists over and over again of contacts, just remember you aint in business to make friends!


Gary