SMS text messaging could become much less practical as a marketing medium in the UK under proposals to reform UK company law, according to a report by Silicon.com. Currently, companies must include certain registration details in their business letters and notices. Under new proposals from the Department of Trade and Industry (DTI), Silicon.com says that plans are in progress to extend the scope of this provision in UK company law to cover both e-mail and mobile phone text messages.

With the maximum length of text messages currently limited to 160 characters by screen displays, the registration details of companies would take up the vast majority of that space. Company law provides that: “every company shall have its name mentioned in legible characters... in all business letters of the company, in all its notices and other official publications” or it is liable to a fine. Further, “every company shall have the following particulars mentioned in legible characters in all business letters and order forms of the company, that is to say –

(a) the company’s place of registration and the number with which it is registered,
(b) the address of it’s registered office,
(c) in the case of an investment company (...) the fact that it is such a company, and
(d) in the case of a limited company exempt from the obligation to use the word ‘limited’ as part of its name, the fact that it is a limited company.”

A DTI consultation paper which considers reviews and modernisations to UK company law acknowledges that current law is ambiguous about application to e-mail. The paper states:

"It is arguable whether this requirement applies to equivalent electronic communication such as e-mails and publications on web sites. We consider that the Act should apply regardless of the method of delivery. In any event, the Act should be clear in this respect".

However, the paper makes no mention of text messages. OUT-LAW.COM spoke to Alan Freundlich of the Company Law & Investigations Directorate at the DTI. He said he was unaware of any proposals to extend the current position to text messaging.

Text messaging is currently an extremely popular method of communication, a fact that advertising companies have picked up on. The monthly volume of text messages sent in the UK is expected to exceed one billion for the first time during August, according to a report released by the UK based Mobile Data Association. This estimate only includes person-to-person messaging, not text messages sent by web sites and SMS marketers.

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