SA Information Regulator Issues its first enforcement notice against spam caller FT Rams Consulting

South Africa’s Information Regulator has issued its first enforcement notice against spam caller FT Rams Consulting, amidst increasing complaints against unsolicited direct marketing from insurance companies, debt collectors, and political parties.

South Africa’s Information Regulator has made a decisive move against unsolicited direct marketing, issuing its first enforcement notice to FT Rams Consulting. This action marks a significant step in the regulator’s efforts to curb the growing issue of spam calls, particularly from insurance companies, debt collectors, mobile operators, and political parties.

According to complaints received by the Information Regulator and data from TrueCaller, these categories are the most frequent offenders when it comes to spam and scam calls in South Africa. The Information Regulator has noted a substantial number of complaints against insurance companies, with many complainants alleging persistent spam communications.

In the past financial year, the regulator received numerous complaints, primarily about insurance companies, but also covering a range of other business types. The most notable action to date is the enforcement notice issued to FT Rams Consulting for contravening the Protection of Personal Information Act (POPIA) through direct marketing activities.

TrueCaller, while not sharing exact figures, confirmed the prevalence of spam calls from insurance companies, finance firms, debt collectors, telecommunications companies, political parties, and those involved in immigration fraud.

The Information Regulator’s crackdown follows a decision in February 2024 to classify telemarketing as electronic communication, thus falling under the regulation of POPIA. Companies found to be in violation of this act may face investigations and subsequent enforcement notices.

Upon receiving a complaint about direct marketing, the regulator conducts an investigation that can lead to an enforcement notice. It also has the authority to initiate assessments independently, which can result in assessment reports equivalent to enforcement notices.

These enforcement notices or assessment reports require offending companies to comply within a specified timeframe. Failure to do so can result in fines up to R10 million or jail time.

The case of FT Rams Consulting serves as a stern warning to other potential offenders. The regulator’s investigation revealed that the training institution had ignored multiple opt-out requests from a data subject and continued to send unsolicited direct marketing messages. This was a clear violation of section 69 of POPIA.

The enforcement notice mandates that FT Rams Consulting cease sending unsolicited messages without consent and that any initial communication must include a request for consent. The company is required to provide evidence of compliance within 90 days.

Additionally, the Information Regulator has identified 14 other potential offenders under investigation. While some cases are still ongoing, the regulator has issued enforcement notices to TransUnion for POPIA violations and the Department of Forestry, Fisheries, and Environment for PAIA violations.

The Information Regulator continues to monitor compliance across both public and private sectors, with ongoing assessments and investigations to ensure adherence to the POPIA and PAIA regulations.