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Regulatory News South Africa

Meeting CPA standards with voucher coupons

Within the voucher coupon industry, the new Consumer Protection Act (CPA) means that retailers, brands and agencies need to ensure an intimate understanding of their consumers' communication preferences and respect for how they market to these potential customers.

Consumers are knowledgeable and empowered, and in this technical world expect personalized products and services as well as brand experiences that make them feel unique and powerful. So add to this the compensation the new CPA gives consumers, advertisers could feel they are at a disadvantage.

For the industry, this means that the process of using mobile vouchers within marketing needs to be done in such a way as to ensure it is compliant with the legislation, which spans all phases of implementing vouchers and coupons. The introduction of the CPA brings about big, yet relevant, changes in how consumers and suppliers engage with each other. Bringing with it the right to fair trade, the right to privacy, to the right clear and honest terms and the right to full disclosure.

Simple language, opt out options

Firstly the CPA protects the consumer by stating that the coupon or voucher must be in a language that is plain and understandable. For example not using the words "T and C's apply" when quite simply "rules apply" is more understandable to the average consumer. Secondly, as stated in section 40 of the CPA, the consumer has the right to fair and honest dealing - namely what the voucher or coupon offers is what the customer can expect to receive. Section 40 also cites that vouchers and coupons may not be false, ambiguous or misleading. Meaning that the voucher and/or coupon must be redeemable for what it appears to offer in a plain and clear language.

Another important point covered by the CPA and affects mobile vouchers is the limitations placed on direct marketing. This includes giving the consumer the right to refuse to accept such marketing, and the right to both opt- in and opt-out from receiving vouchers and/or coupons directly. Random databases cannot be marketed to without the customer's explicit permission.

Honesty pays

Further the CPA places the onus on the supplier to always supply the consumer with honest information when marketing a product. For example: not to market one product with the intention of forcing the sale of another because the initial product is not available.

Another relevant point covered by the CPA is that marketers may not place unreasonable terms and conditions on consumers when redeeming these vouchers and coupons. Here Rolfe points out that when vouchers and/or coupons are received at the discretion of the marketer, the timeline for redemption lies with the decision of the marketer.

Build relationships

Mobile marketing consultant, specialising in compliance and regulations and member of the Mobile Marketing Association of SA's advertising guidelines committee, Janice Allem, hits the nail on the head when she says that marketers will now need to build relationships with their consumers and find ways of being more relevant to them, instead of just assuming that consumers need them.

She adds that marketers need to view the CPA in the spirit it is intended - to protect consumers of their right to choose, privacy and mainly to promote an economic environment that supports and strengthens a culture of consumer rights and responsibilities, business innovation and enhanced performance.

About Chris Rolfe

Chris Rolfe is the CEO of Mobilitrix. For more information, visit: www.mobilitrix.com or the mobile blog: www.ourmobilerevolution.com
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