DMASA still wants opt-out database

The Direct Marketing Association of SA (DMASA) is still interested in running a national opt-out registry at no cost to government, or citizens.

The concept of a countrywide do-not-contact list is contained in the Consumer Protection Act (CPA), which came into effect in April last year. However, so far the database has yet to be established, a situation that seems to be the result of a funding dispute between the former national consumer commissioner and the Department of Trade and Industry.

Last July, the National Consumer Commission (NCC) said the DMASA, an umbrella body that looks after the interests of the entire sector, was the preferred entity to run the database.

However, in September, the commission said it was considering running the registry in-house, after people objected to the DMASA providing the service because of potential conflicts of interest.

DMASA COO Alastair Tempest says someone has to run the national list and the DMASA would be willing to handle the registry.

Tempest says the concern is that if someone else handles the database, the 61 000 consumers who have opted out on the DMASA's list would have to reregister, as it cannot pass over the information.

In general, governments are not well-placed to handle such databases, as they do not have a working relationship with the industry, says Tempest. He says the database requires software that allows marketers to cross-reference against one record, such as IDs or cellphones, depending on the kind of campaign.

Tempest says the database would be run at no cost to government or the public. However, there may be a small - or no - charge for members to cross-reference, and a larger charge for non-DMASA registered companies, he adds.

The DMASA currently has 248 members and Tempest estimates the size of the industry is around 3% of SA's total economy, with 500 000 contract and permanent staff. He says the bulk of direct marketing is done via SMS and e-mail.

Acting commissioner Ebrahim Mohamed is set to meet with the organisation today, possibly to discuss the issue of a registry. Previous commissioner Mamodupi Mohlala-Mulaudzi had indicated the NCC asked the Department of Trade and Industry for R5 million to build the list in-house.

However, trade and industry spokesman Sidwell Medupe has said funding is available for the database, but Mohlala-Mulaudzi did not request it.

Medupe said DTI advised the commissioner in writing, on 14 February, that R9 million was available for projects. He said the department told the NCC it needed to prioritise the projects according to this available funding.

Mohlala-Mulaudzi was also told the procurement process for priority projects could go ahead, but service providers should only be informed once the DTI was satisfied that all relevant procurement processes have been complied with, said Medupe.

So far, the funds have not been requested and are available for the registry, said Medupe. He said Mohlala-Mulaudzi has not submitted an application breaking down the cost of the database.

However, Mohlala-Mulaudzi, whose contract expired on 3 September, argued that funding was requested when the NCC submitted its budget. She said the DTI, which placed the NCC under administration earlier this year, granted a budget that was R100 million lower than requested.