The Direct Marketing Association (DMA) of SA has endorsed the Consumer Protection Act (CPA) which comes into play today.
Brian Mdluli, DMA chief executive, says it was never the intention of the association to fight or resist the CPA.
“The Consumer Protection Act is welcomed by the DMA and we believe that our members have been ready for this law for some time now and we are committed to best practice.
“The DMA has walked the long road with the Department of Trade and Industry (DTI) and we are very proud of the successes that we have achieved in building strong and worthwhile partnerships with legislators who see the work that we do in the marketing industry,” says Mdluli.
According to Dr Pieter Streicher, MD of BulkSMS, there is no denying that the promulgation of the CPA 'do not contact registry' to allow South African customers to permanently opt out of all unsolicited marketing communications will be a massive step forward for consumer rights.
Mdluli adds that the CPA, under section 11, allows the consumer to block the usage of their details for direct marketing purposes.
“The Act provides for a register to be created so that the consumers have a platform to register,” he says.
Under section 12, the Act requires that direct marketing communication be from 8am to 7:30pm during weekdays and from 9am to 1pm on Saturday. It is banned on Sundays and public holidays.
However, Mdluli says consumers must realise that for every right, there is an obligation to understand that right.
Streicher agrees, saying customers need to understand the limitations of the mechanism, and companies need to be ready to comply with the law. Smaller companies especially need to consider the implications of having to regularly query the database.
The other warning he adds, is that despite the CPA finally coming into effect on 1 April, the development of the registry has only just gone out to tender.
“Building the registry is no small task, as it needs to allow companies to quickly query it on a regular basis,” notes Streicher, adding it would take another year or so to set up, at best.
He also points out that the DMA manages an opt-out list that only its members are obliged to comply with, noting that under the CPA, anyone marketing to a consumer has to comply.
security risk - the CPA registry will keep the contact details secure. Companies will submit their lists to the registry and then be told who they can legitimately contact,” says Streicher.
He adds that the DMA list only applies to third-party lists, and not to companies that the customer initially gave their contact details to directly.
“The CPA registry will override previously given explicit consent to companies for direct marketing messages. While the Act criminalises companies who spam consumers, the DMA works on an industry regulation basis.”
From an SMS point of view, Streicher believes the registry will go a long way in cutting down SMS spam, but only for those on the registry.
“Recently, spammers have been by-passing industry regulations such as the Waspa Code, by using international messaging routes. The CPA will apply to all companies, including network operators, regardless of which messaging routes they use.”
Furthermore, Streicher says for consumers not on the registry, the CPA provides no protection against spam or the buying and selling of their personal details.
This will change once the Protection of Personal Information Bill (POPI) is enacted, he says. The POPI Bill requires that businesses obtain personal details directly from the data subject.
Businesses may not obtain personal details from third parties unless they have the explicit consent of consumers to do so, he says.
“Companies should be gearing up to comply with the CPA once the 'do not contact registry' becomes available.”
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