LEGAL MATTERS
What does POPIA really mean for SA's direct marketers? Demystifying the law... With South Africa’s Protection of Personal Information Act (POPIA) having officially commenced on 1 July 2020, the clock is now ticking for business leaders and marketers to ensure they remain compliant once the grace period (of one year) is over. Emails, online adverts, database marketing, promotional letters, SMS messaging, phone calls, postcards, websites, flyers, and catalog distribution are some examples of direct marketing strategies. For these marketers and lead generation companies in particular, there is a great deal of confusion as to what POPIA means in regards to these direct marketing practices – and what companies can and cannot do under the data privacy legislation. In recent years, there has been strong consumer pushback against marketing practices that are widely perceived to be intrusive, surveillance-based, and even downright creepy. Yet this sentiment has to be carefully balanced with sustainable and respectful marketing strategies that provide value to both businesses and consumers – and support business growth in a sustainable way with respect to consumer privacy. To achieve this balance, it is critical for marketers and lead generation companies/specialists to understand the parameters that POPIA has outlined, and how to adapt marketing practices (or review them) within the new legal context. Companies have a lot at risk, as the recent Experian data breach has underscored: the consumer credit reporting company suffered a major breach of customers’ personal information - affecting an estimated 24 million South Africans and nearly 800,000 businesses. Such an incident highlights the value of personal information, and the many questions (and risks) around the buying and selling of customer data without permission. Arguably, one of the key areas to examine and understand is lead generation – and where/how marketers can obtain leads, as well as consent from the consumer. Privacy regulators are hyper focused on this space, so it is really worth understanding the new rules of the road. 54 YOUR BUSINESS | October-November 2020
Lead generation and record-keeping Contrary to what many people think, POPIA doesn’t include a long list of things you can no longer do; instead, it deals mostly with how businesses and marketers now do things. So, where can you get leads? Today, first party lead generation is experiencing a resurgence in popularity – with companies spending more time around starting conversations with potential customers. That said, a major portion of lead generation is from third party providers, and buying leads. You can still buy leads, but there are certain rules attached to this. For example, if you are looking to purchase leads from a credit bureau, you can buy these leads if there is a clause within the credit bureau’s terms and conditions stating that they have obtained
