New Rules for Direct Marketing: Amendments to the Consumer Protection Act

The Department of Trade, Industry and Competition (DTIC) has proposed amendments to the Consumer Protection Act (CPA 68 of 2008). These changes aim to enhance consumer protection from unwanted direct marketing and have implications for businesses involved in direct marketing, including their accountants.

What Key Amendments Are Proposed

1. Opt-Out Registry Management

   • Direct marketers must register annually on the National Consumer Commission’s Opt-Out Registry.

   • Databases must be cleansed monthly to remove contact details of consumers who have opted out.

2. Transparency in Communications

   • All marketing communications must clearly identify the marketer, including their name, physical and electronic addresses, and contact number.

3. Verification Systems

   • Systems must be in place to verify a consumer’s opt-out status before any communication is initiated.

4. Record-Keeping Requirements

   • Direct marketers must maintain updated records that reflect consumers’ opt-out preferences.

What Accountants Need to Know

• Assisting Client Compliance

  Clients involved in direct marketing must understand their obligations under the new regulations. This includes budgetary considerations for system upgrades and regular database cleansing.

• Record-Keeping

  Assist clients in setting up robust systems to maintain accurate records for compliance purposes.

• Financial Impact

  Help clients assess the cost implications of registration and compliance, including potential penalties for non-compliance.

Stakeholders have until 15 January 2025 to submit comments on the proposed amendments. Accountants working with businesses in the direct marketing space should advise clients to review these changes and consider submitting feedback to the DTIC.

For further details or assistance, the draft amendments can be accessed here.