The head of the Direct Marketing Association of SA (DMASA) has hit out at the MD of BulkSMS.com in an open letter to the media.
DMASA CEO Brian Mdluli accuses Pieter Streicher, MD of BulkSMS.com, of being overly negative whenever he writes about the association, and of not being part of the solution.
However, the public spat seems to be linked to a tender to run a national opt-out registry that must be established as a result of the new Consumer Protection Act (CPA).
Under the new law, consumers can be listed on the national database so they are not contacted by marketers. However, the registry has yet to be created, as the Department of Trade and Industry (DTI) only recently issued a tender for companies to bid to run the database.
Mdluli writes to Streicher: “I read a lot of your articles and your fixation with our industry body is truly amazing and starting to worry me a bit. I am aware the organisation that you are affiliated to has tendered against the DMA to administer the new opt-out platform, but have you seen or heard the DMA write negatively about any other organisation?”
Opposing views
But Streicher denies being affiliated with any organisation that has tendered against the DMASA for control of a national consumer opt-out database. He says his “fixation” is on the issue of consumers opting in, instead of out of direct marketing e-mails and SMSes.
Recently, Streicher said changes to the Protection of Information Bill to opt-out instead of opt-in would allow companies to spam people. The Bill now allows firms to send a once-off message to request permission to send communication to people who are not their clients, which Streicher argues is open to abuse.
“My fixation is on the issue of opt-in versus opt-out, and only when this relates to communicating with non-clients via SMS and e-mail,” says Streicher. He argues this will add a cost burden to consumers, who pay to receive mails and to opt-out of SMSes.
“It is my view that the economic costs associated with these unwanted messages significantly outweigh the economic benefits of the resulting sale,” Streicher notes. He supports permission-based direct marketing via SMS and e-mail, and those companies that are involved in the permission-based direct marketing industry.
Mduli says: “We have to work together with all the regulators to make sure that we build a society that has access to valuable offers and important information using all available channels within the ambit of the law.
“The interactive and direct marketing industry employs in excess of 150 000 deserving South Africans who also happen to be majority subsistence employees.” He says the association's goal of creating employment does not dilute consumers' rights to privacy and protection.
“For the DMASA this is a vocation and not a job, and the sooner you commit to a positive dialogue with practitioners who are committed to consumer protection, the better for all of us as an industry,” says Mdluli.
Mdluli urges Streicher to “check your facts and read the legislation properly”. He says his letter is an “olive branch” to Streicher to allow collaboration that will benefit consumers.
Streicher says: “If I made any inaccurate statements about the DMA, any legislation or any other issues, as alleged, please point this out to me, and I will correct these.” Streicher says he respects the role the DMASA plays and hopes to convince it of the benefits of an opt-in regime.
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