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SMS Regulations in South Africa:

Introduction

We know that regulations might seem onerous or daunting to some, but we’re fortunate that South Africa has a robust and strict regulatory environment when it comes to mobile messaging. Regulations are there to protect you and your contacts as well as keeping the mobile messaging ecosystem compliant with various laws.

In South Africa, the Electronic Communications and Transactions Act, 2002 (ECTA) along with the Consumer Protection Act, 2008 (CPA) and the Protection of Personal Information Act, 2013 (POPIA) all regulate electronic communications, including SMS messaging, defining how consent to receive direct marketing is obtained and how a consumer can opt-out from receiving marketing messages. POPIA requires an opt-in regime to receive SMS marketing.

In addition, the Independent Communications Authority of South Africa (ICASA) published regulations on premium rated services (PRS) in 2017, covering rules for the sending of an SMS message to long codes or shortcodes, where the messaging fees are higher than the standard rate when charged to consumers.

As a mobile messaging provider delivering services in South Africa, BulkSMS is a member of the Wireless Application Service Providers’ Association (WASPA) a self-regulating industry body. The WASPA Code of Conduct governs the use of mobile messaging, and you are bound to comply with these regulations when you contract with us to use BulkSMS's messaging services.

This industry Code of Conduct sets out the requirements for SMS marketing in South Africa, as well as the requirements for the advertising and running of premium rated mobile services using shortcodes.

Key requirements for SMS marketing in South Africa:

Identify sender

Sender IDs are not available in South Africa due to mobile network operator policies. Because of this it is important for senders of marketing messages to identify their company, brand or non-profit organisation at the beginning of the body of the SMS message. A contact telephone number or website address must also be included in the body of the message.

Consent

Customers need to opt-in to receive messages from you. This means consumers must give explicit consent to receive messages for your business prior to you sending them marketing messages via SMS or they need to be an existing customer, in which case they have previously provided implicit consent to receive marketing messages. A business must also keep proof of how and when a recipient gave consent because consumers can request to know how their details were obtained.

Alternatively, the organisation must have proof that the recipient has provided their contact details in the context of the sale of a product or service which is same as that being marketed via the mobile channel. These mobile marketing consent rules also apply to non-profits engaged in SMS fundraising campaigns.

Unsubscribe function

A STOP reply unsubscribe mechanism is available for SMS messaging in South Africa whether the messages are marketing related. Consumers have the right not to receive direct marketing communications via SMS. To protect this right, the recipient must be able to opt-out from receiving further messages. This opt-out mechanism must include the ability to reply STOP via SMS, and this STOP request cannot be charged at an additional rate above the standard cost of processing an SMS message. The BulkSMS platform allows for your contacts to reply STOP to your marketing messages, and these opt-outs will be added to a blocked list on your account.

A STOP confirmation message must be sent to the consumer to confirm the opt-out. This message should include the name of your company and the following words: “You have opted out. You will not receive further marketing messages”. Records of opt-out communications need to be kept by a business. A sender also needs to honour an opt-out request made via other channels, such as email or telephonically and provide confirmation of that opt-out request to the consumer.

In some industries there is a requirement to zero-rate the opt-out request from a consumer, that is, the consumer is not charged the transmission cost when replying STOP to a direct marketing message. This is a specific requirement for direct marketing messaging in the short-term insurance industry.

Mobile Marketing Regulations for the Short-term Insurance Industry:

In most cases, companies sending promotional SMS messages using normal bulk messaging accounts don’t cover the opt-out costs of SMS replies. However, certain industries, like the short-term insurance industry in South Africa, are required to cover these messaging costs to ensure that consumers do not pay for an SMS message for when opting-out from direct marketing campaigns.

Promotional SMS competitions

SMS promotional competitions can only be charged at R1.50 or less. This is a requirement set out in the Consumer Protection Act Regulations. There are specific rules for what information must be provided in the terms and conditions for a competition published on the business's website when running SMS competitions, including specifying a specific closing date. The WASPA Code of Conduct sets out the Advertising Rules for SMS promotional competitions which include the displaying and disclosing of SMS pricing information in all the adverting mediums used for promoting the SMS competition.

Times when marketing messages can be sent

It is prohibited to send marketing message during these times in South Africa: on Sundays and South African public holidays; Saturdays before 09:00 and after 13:00; and for all other days between 20:00 and 08:00 the following day. However, a consumer may give a sender permission to send marketing messages during these times by prior consent.

Do Not Contact List

In March 2020, the WASPA Do Not Contact (DNC) List was implemented to enable consumer protection. It is available to consumers with a South African mobile number. The service allows consumers to register their mobile phone number on the WASPA DNC List to pre-emptively block their mobile number from receiving direct marketing messages sent via SMS. A consumer can also elect to unblock their number from the WASPA DNC List later. WASPA members are required to check the WASPA DNC List and block registered number from receiving direct marketing messages sent via its SMS platform by its clients. Read more about the WASPA Do Not Contact List here.

Key Requirements for Premium Rated Services:

What is a Premium Rated Service?

Premium Rated Services (PRS) are those SMS services where the cost of the SMS sent to the consumer is charged at a higher rate than the standard rate. PRS are usually 5-digit shortcodes that are used for mobile content services, voting lines, promotional competition, or non-profit donation lines, among other uses. The Independent Communications Authority of South Africa’s (ICASA) regulations on the Code of Conduct for Premium Rated Services (2017) have been included in the WASPA Code of Conduct.

Terms and Conditions

The terms and conditions of the use of the PRS must appear on the provider’s website. This must include the registered name of the organisation, telephone, and email contact details of the organisation, how the service works, the per message cost of the service (the shortcode access cost), and any other details that are specific to the services (such as, the end date of an SMS competition or whether voting is limited or not).

Advertising

The advertising of PRS must clearly describe the services offered, the pricing information for the cost of SMS, as well as the name of the company or brand providing those services. PRS must not be intentionally targeted at children.

Billing Threshold

Where a consumer spends R200 or more on a specific PRS shortcode in the period of a month from the same mobile number, the provider of that SMS service must send the consumer a billing threshold notification of this fact. A billing threshold notification is then to be sent for every R200 spent thereafter. This rule applies specifically to SMS voting lines.

Telephonic Support

The provider of the PRS must ensure that telephonic support is available and, where possible, the telephone number is to be a toll-free number.

Record keeping

If a complaint for a PRS is received by WASPA then the organisation is required to keep accurate records of the PRS complaint for 5 years.

Links to regulations and further information:

Relevant legislation and regulations:

• Electronic Communications and Transactions Act, 2002 (Act 25 of 2002)
• Consumer Protection Act, 2008 (Act 68 of 2008)
• Consumer Protection Act: Regulations, 2011
• The Protection of Personal Information Act, 2013 (Act 4 of 2013)
• ICASA’s Regulations on the Code of Conduct for Premium Rated Services, 2017
• Short-term Insurance Act (53/1998): Replacement of the Policyholder Protection Rules (2017)

Industry body:

• Wireless Application Service Providers’ Association (WASPA)

SMS Industry Code of Conduct:

• WASPA Code of Conduct

Disclaimer: The information contained in this note is for general guidance on regulatory compliance matters only. While we have made every attempt to ensure that the information contained here has been obtained from reliable sources, BulkSMS.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. It shall be the sole responsibility of Users of BulkSMS.com’s services to familiarise themselves with all applicable laws, regulations and codes of conduct to which they may be subject and to ensure compliance with them.