Companies could face huge fines for pesky telemarketers

CONSUMERS could soon get their own back on the persistent and irritating telemarketing companies which harass them at the most inopportune times.

The pesky telemarketers could face a R10-million fine or even time in prison for contacting you without your permission.

The Protection of Personal Information Act, meant to shield consumers from being targeted unlawfully by direct marketing, will prohibit the use of personal information without prior consent from consumers.

With the establishment of regulators and the provisions of the act coming into full effect, direct marketing companies will be monitored and penalised if they are found contravening the act.

Telemarketing expert and chief executive of South Africa’s marketing association, Lovemore Mushayanyama, said while telemarketing was an effective way of selling products to consumers, it was a disruptive method.

He said: “Companies which rely on telemarketing are going to be stifled with the new law and incur costs in order to comply with the law.”

While consumers’ rights to privacy and the protection of their personal information may be found in other legislation – such as the Consumer Protection Act and National Credit Act, among others – the Protection of Personal Information Act (POPI) is the first piece of comprehensive legislation dealing with privacy.

KPMG corporate and competition law advisory practice’s Nikki Penne said: “If the consumer believes that their information is being processed in contravention of POPI or that their rights to privacy are being unlawfully infringed by an organisation, they could directly submit a complaint to the Information Regulator.”

Economist Mike Shussler said as much as telemarketing was annoying and troublesome to consumers, it played a significant role in the economy as certain sectors such as insurance and timeshare relied on telemarketing to sell their products.