The National Consumer Commission (NCC) has yet to finalise whether it will outsource a national opt-out registry, or develop the function internally.
The NCC had initially indicated the Direct Marketing Association of SA (DMASA) was its preferred supplier, as it had the necessary infrastructure and would not charge the commission to run the registry.
However, the NCC's public consultation period resulted in more people lodging objections to this decision than those in favour of it. Commissioner Mamodupi Mohlala says concerns were raised about the DMASA's independence, as it is an umbrella body that looks after the interests of the direct marketing sector.
DMASA CEO Brian Mdluli has argued there is no conflict of interest because the association was formed by responsible direct marketers to self-regulate the sector.
Waiting game
A national opt-out database, which will allow South Africans to pre-emptively block contact from marketers, including unwanted SMS and e-mail spam, is provided for in the Consumer Protection Act (CPA).
In terms of the new law, which came into effect in April, companies must assume they cannot communicate with consumers, unless they have written confirmation that people's information is not in the opt-out system.
Mohlala says the NCC may have to go back to the drawing board and consider building the infrastructure internally. She says the commission has asked the Department of Trade and Industry whether it would make available about R5 million for this function, but has not yet received feedback.
service provider,” says the commissioner.
Once this analysis is complete, the NCC will communicate its decision with the DMASA, and then gazette the method and medium by which it will provide the opt-out register, explains Mohlala.
Mohlala says there is a possibility that it may be handled in-house, but there are cost implications regardless of whether the registry is handled internally, or outsourced. “In-house provisioning appears to be the cheaper and more objective option.”
The NCC recently told a select trade and industry parliamentary committee that its budget, at R33 million, was insufficient. An “ideal” figure would be R98 million to cover its running and capital costs.
According to the NCC's general notice, only three entities submitted written proposals for the register. The DMASA's bid came in at a cost of R1 million and will not cost the NCC anything, as the investment is covered by annual fees paid by the association's members. The DMASA was established in 2005, and has been running a registry since 2006.
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