A Guide to Processing Personal Data for Direct Marketing

Table of Contents

What Businesses Need to Know

Businesses handle large amounts of personal data daily, especially from their customers. This is equally true when processing data for direct marketing. Direct marketing allows businesses to create effective campaigns by offering personalized products, services, or offers to customers. However, this practice is strictly regulated, and businesses must comply with the legal framework on personal data protection. This framework sets clear boundaries on how such information can be used. Full compliance with the law is essential when handling data for direct marketing purposes.

The meaning of direct marketing

Running campaign, email advertising, direct digital marketing.

According to the Personal Data Protection Law of Georgia, direct marketing involves the direct and immediate delivery of information to a data subject by telephone, mail, email, or other electronic means. This is done to generate or maintain interest in, sell, or support a person, product, idea, service, or initiative. Businesses may use any of these methods, provided they operate within the law. Because personal data is sensitive, businesses must follow the strict regulations set by Georgian legislation.

Consent

Georgian law requires clear consent from the data subject before processing personal data for direct marketing. Since the 2024 amendment, written consent is mandatory in all cases, with no exceptions. Businesses must inform data subjects that their personal data will be used for direct marketing. They must also clearly describe the data processing procedure. This information must be provided in clear, simple, and understandable language, as required by law.

Opt-in and Opt-out

Data subjects must be informed of their right to withdraw consent at any time. If consent is withdrawn, businesses must stop processing the data within a reasonable timeframe. This must occur no later than 7 working days. Businesses must also inform data subjects about the withdrawal process. They cannot impose fees or restrictions and must provide accessible means for withdrawal. This opt-in and opt-out mechanism ensures that data subjects share their information voluntarily.

Other rights of the data subject

Beyond consent, data subjects have the right to know the source of their data. They also have the right to know the identity of the direct marketing provider, the legal grounds, and the purpose for data collection. They can also request correction, update, addition, blocking, deletion, or destruction of their personal information at any time. These rights protect individuals from misuse of their data.

Type of personal data

The type of personal data collected is crucial. Not all personal data can be used for direct marketing, even if processed legally. Personal data can be obtained in two ways: from publicly available sources or directly from the data subject. Publicly available data is limited to name, surname, address, telephone number, and email address. This data must have been made public legally with the data subject’s consent. Any other personal data must be obtained directly from the data subject with written consent. Otherwise, its collection is illegal.

Practical considerations for businesses

Businessmen shaking hands, with icons for data, communication, and security.

When processing personal data for direct marketing purposes, businesses typically collect information from potential or existing customers. They send personalized notifications and communications about their services, including via SMS, email, or newsletters, and may create client profiles. In accordance with Georgian law, businesses must ensure that clients are provided with a simple, clear, and easily accessible mechanism to understand their rights regarding their personal data.

It is also common for businesses to engage third parties, such as advertising companies, to conduct direct marketing activities. In such cases, the processing of personal data must be governed by a formal agreement or contract between the business and the advertising company.

This agreement must clearly outline the duties and obligations of each party and, most importantly, guarantee appropriate data security measures. The business remains responsible for monitoring the advertising company to ensure that personal data is processed strictly in accordance with the legal framework and the terms of the agreement. The advertising company is strictly prohibited from processing or using personal data for any purposes other than those specified in the agreement.

Sanctions in case of a breach

Failure by a business to comply with the legal obligations related to the processing of personal data for direct marketing purposes may result in sanctions imposed by the Personal Data Protection Service. Sanctions may be applied to natural persons, public institutions, non-commercial entities, legal persons, branches of foreign enterprises, and individual entrepreneurs.

These sanctions can include warnings or fines, the amount of which may vary depending on the circumstances and may be increased in the presence of aggravating factors. The imposition of such sanctions underscores the importance placed by Georgian law on the safe processing of personal data and the protection of clients’ rights.

In summary, businesses must exercise due diligence when processing personal data for direct marketing purposes to ensure full compliance with Georgian law. This includes obtaining explicit written consent from data subjects prior to collecting or using their data, providing clear information about the intended use of the data, and respecting the data subject’s right to withdraw consent at any time.

Marketing activities should be conducted with transparency and fairness, adhering to all consent requirements, lawful data collection practices, and effective withdrawal mechanisms. By doing so, businesses not only reduce the risk of enforcement actions but also build trust with clients and strengthen relationships through responsible data handling.