The Consumer Protection Act (CPA) is the next stage in the evolution of digital marketing, as it is a technology-neutral piece of legislation, which covers all types of digital technology and gives digital communications the same legal force as written documents.
This is according to speakers at last week's 'E-mail/SMS marketing and the law' seminar hosted by ICT law firm Chetty Law at the Forum in Bryanston.
Speaking at the event, attorney Katherine Thompson said the CPA makes South African consumers among the best protected in the world, adding that the new legislation has significant implications for all businesses, including the use of digital media to market goods and services.
According to Thompson, the key message of the CPA is that marketers have to be transparent in their dealings with consumers. Most of its provisions, she argued, are designed to make it much easier for consumers to understand exactly what is being offered. Following that basic understanding, they also need to understand what their rights are, she added.
However, Thomson noted that the Act sometimes does not go as far as current practice. She gave the example of refunds. “Most retailers give full refunds with no questions asked, but the CPA actually has quite strict conditions that govern when a full refund is mandatory.”
Chetty Law's principal, Pria Chetty, argued that the CPA needs to be seen within the broader context of the total legal and regulatory framework. In the case of e-mail and SMS marketing, she said, the Electronic Communications and Transactions (ECT) Act is hugely important. “This is a great piece of legislation that actually enables e-commerce in SA rather than frustrating it.”
Spam is one of the hottest topics in e-marketing but SA does not have specific anti-spam legislation, Chetty pointed out. “That's why we have to look at the total regulatory and legal framework.” She also pointed out that both the ECT Act and CPA make provision for opt-out direct marketing, which means companies can market to people with whom their company has no customer relationship, provided the company meets the requirements under the various legislation.
Also at the seminar, Josh Adler, CEO of Prefix Technologies, said e-mail remains the standard way that a lot of business gets done. “The key lesson is that nothing great ever dies, it evolves. New legislation like the CPA and later the Protection of Personal Information Bill will have an impact on that evolution,” said Adler.
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