Business

Law drives call-logging sector

Read time 1min 30sec

The introduction of the Consumer Protection Act (CPA) will boost the call-logging sector.

The new legislation came into effect on 1 April and aims to better protect consumers by cutting down on unscrupulous business practices. Companies that fall foul of the law face a fine of R1 million, or 10% of turnover.

Majuda Software Southern Africa director Matthew Balcomb says the CPA will spur growth in the call-logging sector, because companies must keep records of their interactions with consumers for three years.

Majuda has seen “extreme” growth in demand for its product since the legislation came into effect, says Balcomb. Majuda is affiliated with Majuda Corporation International, which specialises in the development of call recording and quality management solutions.

Balcomb says most interactions with consumers take place though call centres. Recording all telephonic interactions with customers and potential clients is crucial for companies to mitigate risk if there is a dispute.

If a consumer says they were given the wrong information, and lodges a complaint with a consumer body, companies won't be able to prove their side unless they have recorded the call, he says.

Manual recordings and reports will no longer be good enough if a customer disputes what they were told over the phone, says Balcomb. Calls also need to be encrypted so that they can't be tampered with, he adds.

Historically, call-logging used to be a luxury, says Balcomb. He adds that the practice is mostly limited to the financial and legal services sectors at the moment.

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