Peter Grealy, Karl Blom and Wendy Tembedza – partners at Webber Wentzel – take a brief look at the new direct marketing requirements of the Consumer Protection Act.
The Department of Trade and Industry has proposed new direct marketing requirements under the Consumer Protection Act.
These amendments will require direct marketers to implement several modifications to their business practices.
The proposed changes primarily focus on consumer consent, data management and compliance with new administrative requirements.
The proposed changes include:
- Direct marketers must register annually on the opt-out registry which will be maintained by the National Consumer Commission;
- Direct marketers must ‘cleanse’ their databases monthly by removing any consumer data associated with individuals who have registered a pre-emptive block. This ensures that businesses do not contact consumers who have opted out on the registry;
- All electronic communications must clearly identify the direct marketer, including their name, electronic address, physical address, and contact number;
- Direct marketers will need to develop systems to verify the opt-out status of consumers before initiating any marketing communications; and
- Direct marketers must maintain up-to-date records on the opt-out registry and ensure that their marketing practices reflect current consumer preferences as indicated in the registry.
The proposed regulations are open for public comments until Thursday, 12 December 2024.
