The National Consumer Commission (NCC) says registration for the new telemarketing opt-out registry will start in July, enabling consumers to block unwanted calls or even contact from “the entire industry”.
This comes as trade, industry and competition minister Parks Tau signed new regulations under the Consumer Protection Act (CPA) into law earlier this month, creating an opt-out registry that requires direct marketers to check their databases against the list and not call or e-mail anyone who has opted out of marketing communications.
Government first mooted an opt-out registry when the CPA was signed in 2008, coming into effect in 2011. As far back as 2013, the NCC said the database would be operational within four months.
The NCC’s acting commissioner, Hardin Ratshisusu, says “for too long, consumers have been exposed to intrusive and unwanted direct marketing communication. The regulations provide for a robust mechanism to stem unwanted calls to ensure consumers are protected.”
Before registration opens, the NCC will communicate the registration process. “All direct marketers will be expected to register to ensure compliance with the CPA,” it adds.
Cost burden
Industry, through the Direct Marketing Association of South Africa (DMASA), has welcomed the move, although it implied there wasn’t enough stakeholder engagement during the process. It says further clarity from government on implementation aspects “will be essential to ensure smooth and fair adoption”.
In a statement, DMASA CEO David Dickens says: “As with any regulatory change, implementation challenges are anticipated,” listing the cost of registration and database cleaning as well as the potential downstream impact on businesses and consumers across the value chain.
The regulations list a charge of R2 574 to initially register, an annual renewal fee of R1 930.50, and a cleansing fee of 0.12c for each data entry, an activity that must done monthly.
This will result in heavy costs for the sector, which employs at least 300 000 people. A database of only 500 000 records will amount to a cost of R720 000 a year. At least 95% of South Africans have a cellphone, according to Statistics South Africa, which works out to 59 million citizens.
Law firm Mayet & Associates says the rules impose new compliance burdens that could significantly impact marketing strategies, especially for those that rely on large-scale outreach.
Playing by the rules
Marketers also need to ensure they make it possible for consumers to identify them and “be identifiable even on public platforms”. If marketers aren’t identifiable on “public platforms” – which the document doesn’t define – they may not “disseminate any electronic communication”.
If marketers don’t comply with the regulations, they will be in violation of the CPA and could be fined either 10% of their annual turnover or R1 million, whichever is greater.
Consumers also have the duty to ensure their information is accurate and kept up to date. Those who want to complain – or block contact pre-emptively – will need to complete the required forms.
The regulations provide a three-page complaint form and a separate two-page form for consumers who want to block all direct marketing.
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