September 2006

The effect of the pending privacy legislationon the Direct Marketing and Contact Centre Industries…

Catastrophe or Opportunity?

Introduction to Andy Quinan

Chairman of the Direct Marketing Association of SA Legislation Sub-committee

Owner of Database Solutions - a list broker and direct marketing consultancy - www.listsa.co.za

Partner in the Contact Industry Hub - a new integrated marketing service for the contact centre industry, comprising of a web site, www.contactindustryhub.co.za, an e-mail newsletter and an industry database

The Direct Marketing Association of SA

Founded to encourage and develop the highest standards of direct marketing in South Africa

Encompassing all direct media - mail, telephone, broadcast, print, fax, electronic mail and the internet

Representative of all direct marketers - financial, retail, advertising, mail order, contact centre, and electronic commerce industries

The Direct Marketing Association of SA

Relaunched in December 2005

Section 21 company with new board

Sub-Committees formed

Services: Code of conductLobbyingTrainingAwardsIndustry forumLegislation

The DMA Legislation Sub-Committee

Formed in December 2005 specifically to represent the industry on legislative matters - membership is representative

The Protection of Personal Information Bill

Meeting with the SA Law Commission

SALC Consultative Workshops

Final Submission on 25 April 2006

Fully supported by SACCCOM

2nd draft due in September 2006

The Protection of Personal Information Bill -

the issues Constitutional right of privacy

Right of freedom of trade and access to information

Consent - opt in or opt out

Personal data versus sensitive data

EU compliance - The Argentinean example

Privacy Commissioner

The Protection of Personal Information Bill -

the consequences

Limit the use of prospect lists

Uncertainty of final interpretation

Registration of databases

More bureaucracy

Overlap with other laws

Possibility that the views and rights of business would be considered

The Consumer Protection Bill

Second draft published on 15 March 2006

Deadline for submissions first 26 May, then 26 April then 15 May

DMA allies with Business Unity SA

DMA submission in by 15 May 2006

Fully supported by SACCCOM

BUSA Submission by 26 April 2006

Nedlac negotiations

Final draft due in September 2006

To Parliament early 2007

Law by mid 2007?

The Consumer Protection Bill - the issues

A good piece of legislation - for the consumer

A controversial bill

Fundraising and direct marketing specifically identified

Section 13 (1) - express written permission

Section 13 (2) - don’t compile a database without consent

Section 13 (2)

A person must not initiate, sponsor, promote or knowingly participate in any activity, scheme or communication that is primarily designed for the purpose of accumulating confidential information or other identifying information concerning consumers, either surreptitiously or without their express consent.

The Consumer Protection Bill - the issues

Opt-in or opt-out

Do not contact registry

The National Consumer Commission

Overlap with other laws

Moratorium

The Consumer Protection Bill - the consequences

Potentially grave threat to the direct marketing industry

Therefore a very serious threat to the contact centre industry

If not changed - a catastrophe

If changed - a drastic re-adjustment but survival

The Consumer Protection Bill - why a threat?

Affinity marketing

Compiled lists

The changing demographics of SA

The growth in telemarketing

Credit cards, retail credit, loans and insurance

The National Credit Act

The Consumer Protection Bill - why a threat?

Estimated 30% of SA contact centres are outbound

An estimated 20,000 plus agents are calling right now, primarily using compiled lists

The list owners cannot afford to obtain consent

Marketers will no longer be able to compile new prospect lists

A call to action

Finalize the industry code of conduct

Continue lobbying and dialogue with government departments

Talk to the DTI via BUSA

Conduct research into the impact of the legislation

Unify and publicise the Do Not Contact Registry

Take up the challenge individually

As a priority start a customer consent drive

Relook at your systems, your copy, your strategy

Form partnerships and alliances to create and confirm consent driven databases

Make the privacy of your customers a reality