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Over 300 000 users opt-out

Nicola Mawson
By Nicola Mawson, Contributing journalist
Johannesburg, 06 Aug 2012

TrustFabric's national opt-out list has grown to 305 000 users after hitting the 200 000 mark in April, 12 months after its launch that coincided with the implementation of the Consumer Protection Act (CPA).

In terms of the CPA, which came into effect last April, a national opt-out registry is meant to be set up by the National Consumer Commission (NCC). However, a lack of funding and an ongoing battle between the NCC and parent body, the Department of Trade and Industry, means there will be no national registry this year.

The NCC needs about R5 million to develop an opt-out registry, which will allow consumers to preemptively block unwanted communications from companies.

However, there is a dispute between commissioner Mamodupi Mohlala-Mulaudzi and the department over the money needed for the registry. Because of the lack of funding, about half of the provisions in the CPA, which deal with direct marketing, cannot be enforced.

TrustFabric says it is estimated that more than 200 million direct marketing calls and messages are generated every month. The Internet Service Providers' Association estimates the cost of local e-mail-related direct marketing totals about R20 million a year in wasted time and traffic.

“Phone calls and SMS messages are far more intrusive and a bigger waste of productive time. The cost in wasted time from sales calls and SMS spam could be as high as R500 million per year,” Botha has said.

The only other third-party register is run by the Direct Marketing Association of SA, an umbrella body.

TrustFabric also operates a Child Protect service, which offers marketing companies a way to avoid sending adult content like alcohol and tobacco marketing to minors. This service works in a similar way to the opt-out service, but checks if a mobile number belongs to a user over 18-years-old.

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