2. DIRECT MARKETING ASSOCIATION OF SOUTH AFRICA A JOURNEY THROUGH THE REGULATORY FRAMEWORK

3. What is direct marketing? “Direct marketing is the interactive use of marketing media to stimulate an immediate behavior modification in such a way that the behavior can be tracked, analyzed, and stored on a database for future retrieval and use”. Bob Stone

4. Direct Marketing Association 3 Capitalizing on the use of data and media channels to enhance the end user experience and maximize ROI What is direct marketing?

8. A recession is a terrible thing to waste!

9. Disclaimer The views expressed on this presentation are my own and do not necessarily represent the views of the association The presentation should serve as a guideline and not legal advise. If this was legal advice I would have sent you invoices by now! 5/13/2015

10. I LIED! Consumer Protection Act 5/13/2015

11. Our journey today 1.Brief history of the DMA Laws that affect Direct Marketing The Constitution and Bill of Rights Act 108 of 1996 The Promotion of Access to Information Act no 2 of 2000 The Promotion of Administrative Justice Act no 3 of 2000 Electronic Communications and Transactions Act no 25 of 2002 Electoral Act of 1998 Identification Act of 1997 Unfair Discrimination and Promotion of Equality Act of 2000 Unfair Businesses Act of 1988 The Lotteries Act no 57 of 1997 National Credit Act no 34 of 2005 Consumer Protection Act Protection of Personal Information Bill 5/13/2015

12. Brief History of the DMA Re-Founded in November 2005 The DMA currently has 291 members and 10 founder members Members range from agencies to large corporate companies and service providers Our 10 founder members are AVIS, HOME CHOICE, ABSA, FNB, NEDBANK, MTN, SAPO, PLATINUM e- PRODUCTS, COMPUTER FACILITIES AND RCS GROUP The DMA currently holds self regulatory status from the DTI 5/13/2015

13. More media = greater sophistication- more laws to deal with mail TV Radio Print Unaddressed E-mail E-Commerce Mobile Telephone Specialized print Word of mouth Sales promotion Sponsorship E-mail 12

15. DM-Driven Demand Adds 8.3% to US GDP $1.2 trillion US GDP =14.1 trillion

16. DM Spend in 2007/2008 Direct marketing toolAmount spent in 2007 AMS R 100,000.00 SMS R 3,330,000,000.00 MMS R 338,423,437.50 DIRECT MAIL R 475,000,000.00 CATALOGUE R 1,500,000,000.00 CALL CENTRE R 1,000,000,000.00 DIRECT TO HOME R 1,665,400,000.00 INTERNET ADVERTISING R 254,000,000.00 ESTIMATED EXPENDITURE R 8,753,323,437.50 5/13/2015

17. DM Spend in 2009-ESTIMATE 5/13/2015 Direct marketing toolAmount spent in 2009 AMS R 500,000.00 SMS R 5,500,000,000.00 MMS R 1,000,000,000.00 DIRECT MAIL-SAPO R 575,000,000.00 CATALOGUE R 1,200,000,000.00 CALL CENTRE R 1,000,000,000.00 DIRECT TO HOME R 2,000,000,000.00 EMAIL AND DIGITAL R 500,000,000.00 INTERNET ADVERTISING R 300,000,000.00 DATA BASE AND ANALYTICS R 500,000,000.00 MAIL HOUSE AND INSERTS R 100,000,000.00 AGENCY FEES R 2,500,000,000.00 ESTIMATED EXPENDITURE R 14,950,500,000.00

18. 5/13/2015 ‘DON’T COUNT THE PEOPLE YOU REACH, REACH THE PEOPLE WHO COUNT’ - Reimer Thedens

19. Never before has one industry been hit by so many Laws!!- lets start our journey through the law jungle! 5/13/2015

20. Consumer Protection Act 68of 2008 5/13/2015

21. RIGHT TO STOP UNWANTED MARKETING MESSAGES - WE DON’T CALL IT JUNK MAIL. SECTION 11 5/13/2015

22. TIME TO CONTACT THE CONSUMERS SECTION 12

23. EXPIRY AND RENEWAL OF FIXED TERM AGREEMENTS SECTION 14 5/13/2015

24. COOLING OFF PERIOD – 5 WORKING DAYS SECTION 16 5/13/2015

25. PLAIN AND UNDERSTANDABLE LANGUAGE SECTION 22 5/13/2015

26. DISCLOSURE OF PRICE AND SERVICES SECTION 23 5/13/2015

27. DISCLOSURE OF INTERMEDIARIES SECTION 27 5/13/2015

28. GENERAL STANDARDS OF MARKETING SECTION 29 5/13/2015

29. Honest? Win a Nissan 1400 5/13/2015

30. BAIT MARKETING- GOODS ADVERTISED MUST BE AVAILABLE SECTION 30 5/13/2015

31. NEGATIVE OPTION MARKETING SECTION 31 5/13/2015

32. DELIVERING GOODS WITHOUT PAYMENT SECTION 32 5/13/2015

33. CATALOGUE MARKETING SECTION 33 5/13/2015

34. TRADE COUPONS AND PROMOTIONS VOUCHERS SECTION 34 5/13/2015

35. LOYALTY PROGRAMMES- INTENTION TO HONOUR PROMOTIONS SECTION 35 5/13/2015

36. PROMOTIONAL COMPETITIONS SECTION 36 5/13/2015

37. REFERRAL SELLING/MARKETING SECTION 38 5/13/2015

38. UNCONSCIONABLE CONDUCT SECTION 40 5/13/2015

39. CONSUMERS RIGHT TO DEMAND QUALITY PRODUCTS AND SERVICE SECTION 54 5/13/2015

40. GUARANTEES AND WARRANTEES SECTION 56 5/13/2015

41. LIABILITY FOR DAMAGE TO GOODS SECTION 61 5/13/2015

42. Each individual employed in DM Advertising creates increased demand for more than five other employees in production…* The Importance of DM in our Market

43. Siyabonga brian@dmasa.org www.DMA121Club.com www.dmasa.org 0861 DMA DMA brian@dmasa.org www.DMA121Club.com www.dmasa.org 5/13/2015