South African Businesses Violating Privacy Laws with SMS Marketing Tactics
South African companies that require consumers to opt out of direct marketing SMS messages through mobile applications are breaking the country’s privacy laws, according to legal experts.
Vodacom’s Controversial VodaPay Marketing Approach
Telecommunications giant Vodacom has come under scrutiny for its VodaPay app marketing strategy. Instead of allowing users to opt out by replying to marketing SMS messages, the company requires them to:
- Download or re-download the VodaPay app
- Navigate to notification settings
- Manually uncheck SMS marketing preferences
This practice affects both current and former app users, including those who may have switched mobile networks or deleted the application.
Legal Experts Weigh In on POPIA Violations
Consumer rights specialist Wendy Knowler and legal professionals from Webber Wentzel and Fairbridges Wertheim Becker assert that this approach violates South Africa’s Protection of Personal Information Act (POPIA).
Key Legal Concerns:
- Channel restriction: Companies cannot dictate the method for opting out of marketing communications.
- Accessibility: The current process requires data usage and app reinstallation, creating unnecessary barriers.
- Cost implications: Forcing users to download apps to unsubscribe imposes financial burdens.
POPIA’s Direct Marketing Requirements
Webber Wentzel partner Wendy Tembedza explained that Section 69 of POPIA clearly states:
“Each marketing communication must include a free and easy opt-out mechanism.”
The Information Regulator’s Guidance Note on Direct Marketing reinforces this position, emphasizing that withdrawal of consent must be as simple as giving it.
Industry-Wide Issue
MyBroadband’s investigation revealed this problematic practice extends beyond Vodacom, with several major South African banks and other businesses employing similar tactics.
Legal experts warn that companies continuing these practices risk:
- Regulatory action from the Information Regulator
- Damage to customer trust and brand reputation
- Potential legal consequences
Businesses are urged to review their direct marketing compliance strategies to align with POPIA requirements.
Source: MyBroadband