This amendment introduces an "Opt Out Registry" that allows users to opt out of unwanted marketing communications.
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Consumers can finally breathe a sigh of relief as new regulations are set to tackle unwanted calls from direct marketing companies; failure to adhere will result in penalties of up to R1 million.
Last week, Parks Tau, the Minister of Trade, Industry and Competition, gazetted the amendment to Regulation 4 of Section 11(3) of the Consumer Protection Act (CPA) No. 68 of 2008. This amendment introduces an "Opt Out Registry" that allows users to opt out of unwanted marketing communications.
According to the National Consumer Commission (NCC), which is recognised as the administrator of the "Opt Out Registry" system, all direct marketers must register to ensure compliance with the CPA. Failure by direct marketers to comply with the regulations violates the CPA and may attract an administrative penalty of up to R1 million or 10% of the direct marketer's annual turnover (whichever is greater).
In a statement, the NCC for the effective administration of the system, all direct marketers must register to ensure compliance with the CPA and the regulations.
"The regulations also stipulate the registration, renewal and cleansing (deduping) fees, among other requirements. Section 11(3) of the CPA, read with Regulation 4 and the amended regulations, obligates direct marketers in South Africa to update their direct marketing lists to remove consumers who opt out, before marketing goods or services.
"Through the Opt Out Registry system, consumers will be able to block unwanted direct marketing communication from either an individual direct marketer or the entire industry."
The NCC said registration for direct marketers and consumers would start in July. However, before the registration commences, the NCC will communicate the process.
Hardin Ratshisusu, the NCC’s Acting Commissioner, welcomed the promulgation of the amended regulations.
“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 that consumers are protected.”