The Consumer Protection Bill potentially poses a grave threat to the direct marketing industry, says Andy Quinan, chairman of the Direct Marketing Association (DMA) of SA.
Speaking at the second annual Direct Marketing Conference in Johannesburg yesterday, Quinan said if the Bill is not changed, there is potential for catastrophe in the industry. One of the key provisions in the Bill specifically prohibits the inclusion of people`s personal information on a prospect list without the person`s consent, he explained.
Quinan noted that there has been huge growth in the telemarketing industry, with at least 30% of calls outbound or made from outsourced operations. "As we speak, there are at least 20 000 tele-agents calling people using compiled lists," he said.
The challenge, as a result of the growth, is that many list owners cannot afford to obtain consent from their prospective customers, he says. Marketers will no longer be able to compile new prospect lists, he said.
Call to action
The local direct marketing industry must ensure consumer rights and the industry`s requirement for data are balanced, said Jenny Moseley and Rosemary Smith, directors of Opt-4, a UK-based research company, during a joint presentation.
In view of this need for balance, the industry will continue its lobby for amendments of the Consumer Protection Bill to balance the individual`s need for privacy with the needs of business, said Quinan.
"The DMA also needs to conduct research into the impact of this legislation as it is going to affect us dramatically," he said.
"Do not call lists" should also be established to ensure marketers do not contact people who disapprove of direct marketing, as they are unlikely to make purchases anyway, Moseley and Smith said.
It may seem like commercial suicide to create such a list, but is really a "pre-emptive" strike against the consumer lobby, they said. Moseley and Smith also suggested the direct marketing industry develop a code of good practice and over-complies so that government has no reason for enforcement.
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