New advertising rules for local cellphone service providers will come into effect this week.
The new rules, applicable from 1 February, are a co-operative effort between the three cellphone service providers and the Advertising Standards Authority (ASA).
The rules call for advertisements to state the minimum monthly cost at which the contract can be concluded and the exact period for which the contract will be valid.
Dineo Pooe, ASA communications executive, says drafting the rules was a process that started early last year, following an investigation into cellphone advertising by the Department of Trade and Industry (DTI).
The DTI found that advertisements were confusing and misleading to the average consumer due to the large number of costs involved, she says.
It took a number of consultations with all three cellphone service providers before the rules were decided upon in December last year and the DTI approved them on 19 January this year, she says.
Deline Beukes, ASA`s executive director, says the new advertising rules will create "a win-win situation for the cellphone industry as well as government".
"The friendly solution which has been agreed upon makes it possible for the cellphone industry to regulate itself rather than to contend with court battles," she says.
The new rules have been developed to ensure the cost of cellphone contracts will in future be clear and unambiguous to the consumer, says Pooe.
"Cell C has been a leader in this regard, having decided to self-regulate as soon as the matter was brought to our attention in October last year," says Karabo Motlana, head of regulatory affairs at Cell C.
"We welcome the ASA statement giving clarity on the implementation date for the new advertising rules for total costs of cellphone contracts," says Motlana.
All three service providers (Cell C, Vodacom and MTN) agreed voluntarily to adhere to the new advertising rules.
Should the service provider, at the time of placing the advertisement, be aware of the fact that the monthly cost of the contract may differ at any time during the contract period (excluding regulated tariff increases) the advertisement must indicate this prominently.
The advertisement must also indicate the initial minimum total monthly cost and the period of validity, and the subsequent minimum total monthly cost and the period for which it will be valid; and all advertisements have to state clearly that "conditions apply".
According to the ASA web site, the new rules have been accepted by the marketing communications industry, including the media, and will apply to all cellphone advertising.
"I believe the new code rules will clarify the actual cost of a contract. A voluntary agreement to amend the code also creates a win-win situation for both the cellphone industry and government," says Beukes.
"We are glad the decision ensures that all players in the industry must follow suit. The implementation of this amendment across the industry means that consumers will now be able to make informed decisions and have a clear basis for comparison," says Motlana.
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