Image created by AI

South Africa Ramps Up Consumer Privacy Protection with New Opt-out Registry Proposal

Published November 08, 2024
3 months ago

In a bold move to protect consumers from the persistent nuisance of spam calls, South Africa's Minister of Trade, Industry, and Competition, Mr. Parks Tau, has proposed an amendment to the Consumer Protection Act (CPA) that could reshape the marketing landscape. This amendment outlines the formation of a government-run national opt-out registry, providing residents the power to block unwelcome communications from direct marketers with a pre-emptive registration.





The move comes as a significant step up from the currently existent opt-out database administered by the Direct Marketing Association (DMA), which protects consumers only from its members. The new proposal aims to extend these defenses across the board, offering blanket protection from direct marketing intrusions.


According to the announcement made by the Department of Trade, Industry, and Competition (DTIC), the proposed registry will necessitate that direct marketers register themselves on the opt-out database annually and maintain updated records. Significantly, it will require them to cleanse their databases by removing individuals who have opted out, ensuring that these consumers are not targeted with advertising.


The amendments will also introduce measures to increase transparency in direct marketing. Marketers will be compelled to clearly identify the source of their advertisements, providing the company's name, physical, and electronic addresses, and contact numbers to recipients. A significant deterrent in the form of heavy sanctions ranging from fines to lengthy prison sentences will be imposed for violations of the CPA, including a substantial ten-year imprisonment for the unwarranted disclosure of personal information.


Public engagement in the form of comments on these amendments is open for a 45-day period starting from the 28th of October. For citizens to register on the opt-out database, they will have to submit personal information, for which the DTIC has promised secure management.


Within the broader South African legal context, this registry addresses a major gap in the Protection of Personal Information Act (Popia), which allowed telemarketers to make repeated calls under the guise of obtaining consent, a practice that could lead to endless harassment for individuals.


Despite the historical challenge in receiving sufficient complaints against direct marketers, largely due to misconceptions about financial incentives, the Information Regulator is developing a more efficient and accessible complaints management system. The requirement for direct marketers to register will additionally aid in identifying and keeping track of such entities.


The Information Regulator does not solely depend on consumer complaints for action; it can independently initiate assessments with or without them, leading to enforcement notices with corrective actions to be taken by violators.


Going forward, the Information Regulator's forthcoming guidance note, awaiting finalization, will set clear parameters for how telemarketing should be conducted within the purview of Popia, helping to regulate electronic communication and reinforce the rights of South African consumers.


Leave a Comment

Rate this article:

Please enter email address.
Looks good!
Please enter your name.
Looks good!
Please enter a message.
Looks good!
Please check re-captcha.
Looks good!
Leave the first review