The plan to introduce an opt-out registry for direct marketing in South Africa is gaining momentum, with implementation set for the 2025/26 financial year. This initiative, spearheaded by Trade, Industry, and Competition Minister Parks Tau, aims to give consumers more control over unsolicited marketing calls.
According to the department, a majority of the public who provided feedback on Tau’s proposal expressed strong support for the opt-out registry.
“This will be an electronic system where consumers can register by uploading their details into the database,” the department explained.
“The opt-out registry will allow consumers to block or limit unwanted communication from direct marketers.”
In addition to consumers signing up, direct marketers will also be required to register on the system and “cleanse their list before running a campaign.”
“A cleansed consumer list will be valid for 30 calendar days,” the department added.
A New Era for Consumer Protection
In December 2024, Minister Tau proposed amending Regulation 4 of the Consumer Protection Act (CPA) to formally establish the opt-out registry for direct marketing.
Regulation 4 outlines the mechanisms for blocking unwanted communication from direct marketers, and the recent proposal was a crucial step toward launching the system.
“The public gazetting of the regulation and gathering input from consumers and stakeholders were key steps toward rolling out the registry,” the department stated.
Once the new regulations take effect in the 2025/26 financial year, the National Consumer Commission will oversee the registry’s operation.
Currently, the Direct Marketing Association of South Africa (DMASA) runs a national opt-out registry, but only its members are required to comply with it. However, the government’s new opt-out system aims to introduce a more comprehensive and legally enforceable block against unsolicited direct marketing.
Unlike DMASA’s system, which is voluntary for non-members, Minister Tau’s proposal mandates that all direct marketers register before conducting any marketing activities.
Additionally, direct marketers must clearly identify themselves in all communications, ensuring that consumers can report any unsolicited marketing attempts.
Penalties for Violating Consumer Protection Laws
Under current CPA regulations, businesses that violate direct marketing rules face fines and, in some cases, up to one year of imprisonment.
Meanwhile, South Africa’s Information Regulator is intensifying efforts to crack down on direct marketers who violate the Protection of Personal Information Act (POPIA).
In February 2024, the Information Regulator ruled that telemarketing falls under the category of electronic communication and must be regulated under POPIA.
In a statement to MyBroadband, the regulator warned that businesses found guilty of non-compliance could face fines of up to R10 million or even jail time.
“If we receive a complaint regarding direct marketing, we will launch an investigation, which could lead to an enforcement notice,” the regulator explained.
“If the responsible party fails to comply with the enforcement notice, we may issue an infringement notice, which carries a fine of up to R10 million and/or imprisonment.”
A Legal Battle on the Horizon?
Information Regulator Chair Pansy Tlakula emphasized that the key issue is not businesses contacting consumers, but rather the relentless spamming of individuals even after they have declined communication.
“If a consumer refuses the communication, companies should stop – but they don’t,” she said, revealing that she herself has been a victim of such calls.
The regulator recently published a guidance note on direct marketing for public consultation, outlining stricter compliance measures for businesses.
Tlakula anticipates resistance from direct marketers, which could potentially lead to legal challenges.
“My sense is that we will probably end up in court over this,” she said.
“Direct marketers will likely wait until there is a formal complaint, and when we rule against them, they will take us to court. The key legal debate will be whether telemarketing qualifies as electronic communication.”
In February 2024, the regulator issued its first enforcement notice against FT Rams Consulting, a company found guilty of violating direct marketing rules.
Since then, the regulator has identified 14 additional companies under investigation, though no further enforcement notices have been publicly announced yet.
With stricter regulations on the horizon, South Africans may soon see a significant reduction in spam calls, giving consumers much-needed relief from intrusive marketing practices.
Image by Gerd Altmann from Pixabay
