Parks Tau, minister of trade, industry & competition, has amended the Consumer Protection Act (CPA) to shield consumers from intrusive spam calls by opportunistic telemarketers, with the National Consumer Commission (NCC) set to establish a register of direct marketers to improve enforcement.
Direct marketers who fail to register will be prohibited from contacting consumers for direct marketing purposes or face penalties if they do.
The NCC will administer the “opt-out registry”, which provides mechanisms on the registration of direct marketers and the processes of registering by consumers and direct marketers.
The amendments are in furtherance of consumers’ rights to privacy, including from unsolicited communications in the marketing of any goods and services.
Under the amendments, which have come into effect immediately, consumers will be able to register a “pre-emptive block” on the opt-out registry to prevent any unwanted electronic communications from direct marketers.
Consumers will be expected to register and elect their options on whether they prefer to be contacted via email, call or text or have no communication from a particular direct marketer or industry.
This will enable marketers to cleanse their contact lists before running any campaign. The change means they may contact only consumers who have opted in to be contacted. Failure by marketers to do so would contravene the act.
Tau’s amendments also target anonymous bulk messaging, asking marketers to take steps to ensure recipients can identify the marketer’s name, electronic address, physical address and contact number.
NCC spokesperson Phetho Ntaba said direct marketers who fail to comply with the regulations will be referred to the National Consumer Tribunal for an imposition of an administration fine of up to R1m or 10% of the direct marketer’s annual turnover, whichever is greater.
“There has been an exponential increase in spam calls targeted at South African consumers, and they have now reached unacceptable levels, which then necessitated the amendment of regulation 4 of the CPA,” Ntaba said.
“These amendments will ensure that consumers are protected from unwanted direct marketing and enjoy their right to privacy afforded to them in terms of section 11 of the act. The NCC will be communicating the next steps that consumers and direct marketers should follow to ensure compliance by direct marketers and protection of consumers.”
Direct marketing has been legislatively regulated in South Africa since 2002. Before the commencement of the operative provisions of the Protection of Personal Information Act in 2020, direct marketing was already regulated under the Electronic Communications and Transactions Act 25 of 2002, the National Credit Act, and the CPA.
However, consumers have continued to be flooded with spam calls and messages, with pressure now on the NCC to ensure the new amendments to the CPA are effective in protecting consumers.
Tau has increasingly taken steps to protect consumers. In March, he moved to ensure South Africa will require many unregulated imports from China to meet local safety standards.
He issued a directive to implement a pre-export verification of conformity programme on unregulated Chinese imports, with the directive set to be effective in the next six months.
The directive is aimed at protecting local industries and consumers.
Some of the products targeted for tighter quality controls include skin-lightening creams, sanitary towels, napkins, hair relaxers, hair conditioners, non-stick pans, plastic utensils, aluminium cookware and cooking pots.
Other products covered by the directive include office chairs, office desks, wardrobes, cupboards, children’s cots, bicycles, basic home fitness equipment, sports protective gear, plastic toys, fuel generators, photovoltaic panels, gas stoves, plumbing components, firefighting equipment, and building and construction materials.
The effect of the directive is that the imports will have to meet South Africa’s standards before they leave China.
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