South Africa is introducing stricter regulations for direct marketing in an effort to reduce unsolicited calls and improve consumer protection. While legal experts have welcomed the reforms, they caution that the new framework may have limited impact unless it is backed by strong enforcement and technical safeguards.
The amendments to the Consumer Protection Act regulations introduce mandatory registration for direct marketers, stronger consumer opt-out rights and new compliance obligations for businesses. However, questions remain over whether the rules can effectively tackle the growing volume of spam calls, particularly those originating outside the country.
New Compliance Requirements For Direct Marketers
Trade, Industry and Competition Minister Parks Tau has approved significant amendments to the regulations under the Consumer Protection Act, introducing a more comprehensive regulatory framework for direct marketing in South Africa.
Under the new rules, every business engaged in direct marketing will be required to register with the National Consumer Commission’s Opt-Out Registry before conducting marketing activities. Marketers must also consult the registry before contacting consumers, ensuring that people who have chosen to block unsolicited communications are excluded from marketing campaigns.
Legal experts Tim Fletcher and Kgatlhiso Mofokeng of Cliffe Dekker Hofmeyr said the amendments substantially increase compliance obligations for businesses. Registration must be renewed annually, and companies will be required to conduct monthly data cleansing exercises to remove the contact details of consumers who have opted out.
The regulations also strengthen transparency requirements by obliging marketers to clearly identify themselves and provide accurate contact information in every communication.
From 2026, businesses will face additional compliance costs, including an initial registration fee of 2,574 rand, an annual renewal fee of1,930.50 rand and monthly charges linked to database cleansing. These fees will increase every three years, creating ongoing financial obligations for companies that rely heavily on direct marketing.
Experts Say Enforcement Will Determine Success
According to Fletcher and Mofokeng, the amendments represent a significant improvement in South Africa’s consumer protection framework by preventing unregistered businesses from carrying out direct marketing activities.
Consumers who register on the Opt-Out Registry will be able to block legitimate electronic marketing communications before they are sent, providing greater control over unwanted contact.
However, the experts warned that the effectiveness of the new system may be limited by factors beyond South Africa’s jurisdiction.
International experience shows that do-not-call registries can reduce unsolicited marketing from legitimate domestic businesses, but many spam calls now originate from operators based outside the country. These cross-border callers are unlikely to be affected by South Africa’s regulatory framework.
The lawyers also questioned whether sufficient technical measures have been introduced at network level to detect and identify marketers who ignore the rules.
Without robust enforcement mechanisms, they argued, the registry risks affecting only businesses that are already willing to comply with the law, while rogue operators continue to contact consumers.
Although the reforms mark an important step towards improving consumer rights and raising industry standards, Fletcher and Mofokeng said the real test will be whether the regulations deliver meaningful reductions in unwanted calls rather than simply creating additional administrative requirements for legitimate businesses.
Source: Cliffe Dekker Hofmeyr, Department of Trade, Industry and Competition