MTN has been referred to the Information Regulator's Enforcement Committee after the regulator received complaints from South Africans about unsolicited marketing.
The Information Regulator of South Africa has referred MTN to its Enforcement Committee over potential breaches in the Protection of Personal Information Act (POPIA).
Chairperson Pansy Tlakula said during a media briefing that MTN, as well as insurance provider OUTsurance, were referred to the committee due to unsolicited electronic communications.
Specifically, Tlakula referred to the direct marketing in which companies targeted their customers and other data subjects in South Africa.
She said that last year, the regulator received over 3,800 complaints from South Africa, 10% of which concerned unsolicited direct marketing.
“The complaints demonstrate continued concern among data subjects about the use of their personal information for marketing purposes, particularly through electronic communications,” Tlakula said.
“These matters are significant because they raise important questions regarding the interpretation and application of section 69 of POPIA on direct marketing.”
Section 69 of the act focuses solely on direct marketing by means of unsolicited electronic communications, also known as spam marketing.
According to the section, the processing of personal information of a data subject for the purpose of spam marketing is prohibited, except in a few cases.
Those exceptions are if subjects gave their consent to receive this marketing, or if the company sending the direct marketing gave the data subject a reasonable opportunity to refuse or object.
The section also makes it clear that any direct marketing communication must include the sender’s details and a contact which can be used to opt out.
MTN will now be under review by the regulator’s Enforcement Committee to determine whether it is in breach of any of these Section 69 subsections.
If any breaches are found, the regulator will begin assigning penalties to MTN. The South African telecom said it was engaging with the Information Regulator on the matter.
MTN has been referred to the Information Regulator’s Enforcement Committee
MTN South Africa agreed with Tlakula’s statement that greater certainty was required for both responsible parties and data subjects, and that Section 69 raised “important questions.”
“MTN values its customers and takes feedback regarding its communications seriously. MTN’s approach to customer engagement and marketing is founded on customer choice and preference,” it said.
“Customers remain in control of how they receive marketing communications and can opt in, opt out, or update their preferences through available channels, such as MTN App, USSD and the contact centre.”
The company reiterated that its marketing was informed by a framework based on lawful and fair practices, and where concerns were raised, they were reviewed and addressed.
“Respecting and giving effect to those choices is a core principle of MTN’s approach to customer communications,” said MTN South Africa.
“We encourage customers to remain mindful of the marketing permissions and consent choices they provide when engaging with any organisation, retailer or service provider.”
MTN South Africa said that it reviews its customer communication practices to ensure that customer preferences are respected and appropriate across its channels.
“The outcomes of these matters will be important in providing greater certainty to both responsible parties and data subjects,” said Tlakula.
“We emphasise that POPIA is not an obstacle to legitimate commerce. It is a framework within which commerce must take place lawfully and fairly.”
MTN South Africa is cooperating with the Information Regulator following the referral and said it was committed to protecting its customers’ personal information.
Hardin Ratshisusu, Acting Commissioner of the National Consumer Commission
The Information Regulator chairperson said that the organisation welcomed recent amendments to the Consumer Protection Act, which are aimed at curbing unsolicited marketing, including spam calls.
Earlier this month, the National Consumer Commission revealed that it was almost ready to launch its National Opt-Out Registry.
This system would allow consumers in the country to opt out of receiving spam calls from companies or entire industries.
“What is evident, from the information in the public domain, is that unwanted direct marketing calls are out of control,” the commission said.
“In this context, the NCC will be rolling out the opt-out registry system very soon to allow consumers to register their pre-emptive block against direct marketers.”
Tlakula said that the pre-emptive block register was an important additional message in addressing “the scourge of unwanted direct marketing.”
“Registration in the pre-emptive block register does not displace the obligations imposed by POPIA,” she said.
“Bodies have an obligation to obtain consent from a person before sending unsolicited direct marketing communication to them.”
The Information Regulator is now working with the NCC to identify areas in which the two institutions can work jointly in creating public awareness and receiving and handling complaints.
“We trust that closer collaboration between us and the National Consumer Commission will strengthen the fight against unwanted electronic communications,” Tlakula said.
“It stands the chance to provide greater protection to consumers and data subjects.”
