Long-awaited amended regulations now protect consumers against unwanted spam calls.
Image: Sora
South Africans frustrated by relentless spam calls are set to benefit from newly amended regulations that establish a formal opt-out registry under the National Consumer Commission (NCC).
The updated Consumer Protection Act (CPA) Amendment Regulations set out the long-anticipated operational framework for the system. It requires direct marketers to register, renew their registration annually, regularly cleanse their databases against the opt-out list, and prohibits marketing to consumers who have placed a pre-emptive block, with immediate effect.
The NCC has welcomed the amendments to the CPA, as gazetted by Minister of Trade, Industry and Competition Parks Tau last week. The new regulations formally introduce the opt-out registry while creating a structured mechanism for consumers to block unwanted direct marketing.
Under the framework, the NCC is designated as the administrator of the system. To ensure compliance with the CPA and regulations, all direct marketers will be required to register on the registry.
The regulations also set out requirements relating to registration, renewal, and database cleansing (de-duplication) fees. Marketers will be obliged to update their databases to remove consumers who have opted out before any marketing communication is sent. Consumers will be able to block direct marketing either from specific companies or across the industry as a whole.
Registration for both consumers and direct marketers is scheduled to begin in July. All direct marketers must comply with the CPA requirements, and failure to do so will constitute a violation of the Act. Non-compliance may result in administrative penalties of up to R1 million or 10% of annual turnover, whichever is greater.
NCC Acting Commissioner Hardin Ratshisusu welcomed the development, saying it addresses long-standing concerns about intrusive marketing practices.
“For too long, consumers have been exposed to intrusive and unwanted direct marketing communication. The regulations provide for a robust mechanism to stem unwanted calls to ensure that consumers are protected,” he said.
Legal expert Ahmore Burger-Smidt of Werksmans Attorneys said the regulations clarify the NCC’s role as custodian of the national opt-out registry and establish the compliance framework governing direct marketers, addressing ongoing concerns around spam calls and messages.
She noted that Regulation 4 requires the opt-out registry to remain accessible at all times, except for unforeseen technical interruptions, allowing consumers across the country to register a pre-emptive block.
“This positions the NCC as the operational hub and guarantees public access to exercise the opt-out right,” she said.
Burger-Smidt added that direct marketers must register via a dedicated registration form, creating a single entry point for all entities engaged in direct marketing.
She further explained that the regulations establish a hub-and-spoke compliance model, requiring all marketers to register on the system and renew their registration annually on the anniversary date through payment of the prescribed fee.
Marketers must also ensure their information remains accurate and that they are identifiable across platforms. They are prohibited from sending electronic communications where the originator cannot be identified.
According to Burger-Smidt, marketers are required to remove the details of individuals who have opted out by cleansing their databases on a monthly basis in coordination with the Commission. This shifts compliance from a once-off exercise to an ongoing obligation.
She said the overall message is clear: responsibility for reducing unsolicited direct marketing is now embedded in a formal CPA compliance system anchored by the NCC, requiring immediate operational adjustments by industry players.
zelda.venter@inl.co.za
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