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Opt-out checks will cost

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 29 Jan 2015
It will cost R1 for every 1 000 records checked against the Direct Marketing Association of SA's registry.
It will cost R1 for every 1 000 records checked against the Direct Marketing Association of SA's registry.

The Direct Marketing Association of SA (DMASA) will start charging marketers to check they are not sending unwanted communications to end-users.

This was revealed in a letter the DMASA sent to its members earlier this month. The association was initially set to start charging for its services from the beginning of this month, but ITWeb understands this has now been postponed to February.

The DMASA will charge companies R1 for every 1 000 records marketers check against their campaign list. In a letter sent to members, it explains the cost is necessary because of the amount it pays to license, connect and maintain the system.

In addition, notes the DMASA's letter, the cost of securing and backing up its database also needs to be covered. Marketers upload their target's contact details to the DMASA, which then checks whether contact details such as cellphone numbers and e-mail addresses are listed on its do not contact list.

Limited choices

The DMASA is one of two national opt-out lists in SA, with the other run by TrustFabric, which has more than 300 000 consumers registered on its list. A national opt-out list has been in the offing for several years, but has seemingly stalled.

Initially, the database - which was meant to be set up under the Consumer Protection Act that came into effect in April 2011 - was held up because of a wrangle over funding between the National Consumer Commission (NCC) and its parent, the Department of Trade and Industry.

Although current NCC commissioner Ebrahim Mohamed has made moves to get the database in place, it was again held up last year because of issues with conflicting laws. Almost a year ago, he told ITWeb the commission wanted the Department of Justice to clarify the conflicting marketing regimes contained in the Consumer Protection Act (CPA) - which governs the NCC - and the Protection of Personal Information Act (POPI), which has yet to come into effect.

Mohamed explained the CPA provides for an opt-out regime, while POPI creates one in which people need to choose to be marketed to - or opt-in. He said the database will be held in abeyance until these issues are sorted out, because he does not want to confuse the market. He was unable to provide an update on the process this morning.

The database, which has been three years in the making, would allow consumers to pre-emptively block all forms of communication from direct marketers.

TrustFabric has estimated over 200 million direct marketing calls and messages are generated each month. The Internet Service Providers' Association has estimated the cost of local e-mail-related direct marketing amounts to about R20 million a year in wasted time and traffic.

The DMASA did not respond to a request for comment.

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