Say goodbye to spam calls in South Africa

Trade, Industry, and Competition Minister Parks Tau’s plan for an opt-out registry for direct marketing is taking shape, with a rollout planned in the 2025/26 financial year.

The department told MyBroadband that the majority of the public who submitted comments on Tau’s proposal supported implementing an opt-out registry to block direct marketing calls.

“This is an electronic system where consumers will apply by uploading their details into the Registry,” it said.

“The opt-out registry will provide consumers with the opportunity to restrict or block unwanted communication from direct marketers.”

It added that direct marketers must also register on the system and “cleanse their list before running a campaign”.

“A cleansed consumer list will be valid for 30 calendar days,” it said.

In December 2024, Minister of Trade, Industry, and Competition Parks Tau proposed amending Regulation 4 of the Consumer Protection Act (CPA) to establish an opt-out registry for direct marketing.

The department says Regulation 4 provides guidance on the mechanism of blocking unwanted communication from direct marketers.

“The gazetting of the regulation and soliciting input from consumers and interested stakeholders was a step towards the rolling out of the registry,” it said.

“The registry will be run by the National Consumer Commission once the Regulations are promulgated within the new financial year 2025/26.”

While the Direct Marketing Association of South Africa (DMASA) already offers a national opt-out registry, only its members are obliged to use it.

When the department launches the new opt-out registry, the government-run platform promises a pre-emptive block against all direct marketing.

Unlike DMASA’s registry, Tau wants to ensure that all direct marketers register before they can operate.

All direct marketers must also identify themselves in all marketing communications. This will ensure that consumers can report any unsolicited communications.

Current punishments for violating the CPA include fines and up to one year of jail time.

South Africa’s Information Regulator wants to crack down on direct marketers contravening the Protection of Personal Information Act (Popia).

In February 2024, the Information Regulator decided that telemarketing amounts to electronic communication and must be regulated under Popia.

In feedback to MyBroadband, the watchdog warned that offenders could face fines of up to R10 million or jail time.

“Following receipt of a complaint on direct marketing, we would conduct an investigation, which may be followed by an enforcement notice,” it said.

“Should the responsible party fail to adhere to the instructions in an enforcement notice, this may result in us issuing an infringement notice, which carries a fine of up to R10 million and/or imprisonment.”

Speaking about the decision, Information Regulator chair Pansy Tlakula said the watchdog had published a direct marketing guidance note for public consultation.

She explained that the issue isn’t that companies are calling consumers to market to them. The problem is that they spam residents with calls, even if they decline the communication.

“If you decline the communication, they should stop, but they don’t stop,” she said, adding that she, too, is a victim.

Speaking about the guidance note, the chair said she expected direct marketers to take issue with it, which would probably lead to legal battles.

However, Tlakula is undeterred.

“The rules are very clear, but I think with direct marketing, my sense is that we’ll probably end up being in court,” said Tlakula.

“They will wait for the time when there is a complaint, and once we decide against them, they’ll probably take us on review and the issue of whether a telephone is electronic communication or not will come to the fore.”

The regulator issued an enforcement notice to its first offending company, FT Rams Consulting, in late February 2024 and said it had identified 14 other offenders it was investigating.

It has not announced the issuing of any further related enforcement notes since.