While proposed changes to the Postal Services Act may not seem relevant to Internet companies at first glance, the amendments could have a serious impact if they are not made properly. Questions like what a courier company is and what defines a parcel have not been clearly answered and could raise a lot of problems for e-tailers later.
This became clear at a recent press conference called by the Department of Communications to talk about its road show on proposed amendments to the Postal Services Act. The proposed amendments sent the courier industry into quite a tizz, as they originally required these companies to be licensed with a fee ranging between R5 000 to R25 000. Now they will only have to register for a minimal cost of R500.
Many Internet companies have developed their business models around the ability to deliver goods or a service to a customer, at a fair price and at a place and time of the customer`s choosing. Whether the company delivers or the delivery is outsourced to a third-party is almost immaterial, the point is that the goods must be delivered when required.
At the department`s press conference, chairman of the Postal Regulator, Dupree Vilakazi, and his deputy, Mikie Kutta, worked through some of the possible amendments to the Postal Services Act. High on the agenda was the question of registering courier companies. Apparently, though, there is still some confusion about what a courier company actually is.
While the new Section 22 of the Act defines the obligations of a registered courier company, it does not quite define where a courier company begins and a self-delivery operation ends. The Post Office has some exclusive areas, although its own courier company, the CFG Group, has to compete in the open market.
Another question is - when is a parcel a parcel? According to Vilakazi, the real definition is that a parcel would have to have a receiver`s address on the front and a return address on the back. So a bouquet of flowers or a box bearing only a tracking code may not really be a parcel and may not be covered by the amendments. However, this seems rather inadequate as it leaves a few obvious loopholes that may be difficult to plug later.
One should remember that Internet-based companies often exploit the grey areas, whether they are created through pure commercial opportunism or through legislative oversights. The problem is that once these areas, or loopholes, are plugged it can lead to a loss of profits, opportunity and even livelihoods.
While communications minister Ivy Matsepe-Casaburri has said that changes to the Postal Services Act will not impact on pizza delivery or flowers arriving for Mother`s Day, it must be remembered that if badly written legislation comes into effect, no matter how good the intention, it will mean upheaval for a lot of companies. And possibly more expense for the taxpayer.
So some Internet companies that deliver to their customers could unwittingly be caught up in a legislative malaise that may cut their lifeblood - that of delivering on their promises.
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