Power Report: Where do those SMS spammers get your number?

17 January 2016 - 02:02 By Megan Power

Too often, self-regulatory industry bodies are nothing more than cosy clubs looking after their own interests. But there are exceptions, and the Wireless Application Service Providers' Association, or Waspa, appears to be one of them. It represents companies that link mobile content and services to cellphone users; a complex and controversial industry with its fair share of cowboys and rogues.All the more reason consumers can be thankful for the industry's rigorous code of conduct, one that, remarkably, offers stronger protection against SMS spam than the all-powerful Consumer Protection Act.The association also boasts a robust and transparent dispute-resolution system, with a detailed list of independently adjudicated complaints on its website. If only more consumers would use it.story_article_left1Johannesburg reader John Paterson did - and it paid off. The guilty verdict against a major sender of bulk SMSes - and indirectly its large retail client - is worth crowing about.I wrote about Paterson's anger at a Truworths spam SMS in August last year, and encouraged him to complain to Waspa.Under the act, as long as the opportunity to opt out is offered (and requests honoured), suppliers are allowed to send direct marketing messages without consent. But Waspa's code - binding on its members - forbids it. So when Waspa memberSMSPortal transmitted a marketing message to Paterson, 34, on behalf of Truworths, there had to be consent from him. There wasn't.A furious Paterson claimed he wasn't a Truworths customer, nor had he ever consented to its marketing. He opted out of the SMS, but wanted answers.In cases where marketers - in this case, Truworths - are not Waspa members, the code makes aggregators like SMSPortal liable for any breaches made by its clients. It's an impressive provision that ensures the buck stops somewhere.In this case it stopped with SMSPortal, one of the largest bulk SMS providers in South Africa, which sends more than 300million SMSes a month.An independent Waspa adjudicator ruled SMSPortal had transmitted an unsolicited marketing message and fined it R15000 for the single violation.block_quotes_start Under the new Protection of Personal Information Act companies will have to get specific consent from consumers block_quotes_end"It's a victory for the small guy!" said Paterson.This was the sixth time Waspa has fined members since August 2014 for breaching the spam provisions - among other things - when violating direct-marketing rules. The fines ranged from R2500 to R50000 - significant amounts, considering those meted out by our courts for certain criminal acts.Said Waspa general manager Ilonka Badenhorst: "The fact that the complaints process as a whole works, and that our members are held accountable ... can be viewed as a victory not just for consumers, but also for the industry as a whole."Although Waspa received between 50 and 170 spam-related complaints a month, Badenhorst claimed only a small number were linked to its members."Many companies obtain software which sends bulk SMS messages when a sim card is connected to a PC running that software," said Badenhorst.story_article_right2"These companies fall outside our jurisdiction ... we refer complaints involving non-Waspa members to the mobile networks, and in some cases they are able to take action against the senders."Charles Stretch, the MD of SMSPortal, said the adjudicator's report made it clear that no fault was attached to SMSPortal, but that it was still responsible for breaches by those on whose behalf it acted , if its clients were not Waspa members.The aggregator stated in its response to the adjudicator that it was updating its agreement with Truworths to ensure the retailer's responsibilities were "properly set out".Clearly they weren't.Truworths was adamant with me this week that it wasn't bound by the industry code."The distinction between the Consumer Protection Act and the code is that the former is law and the latter is an industry-drafted and adjudicated code of conduct, binding only on its members," said legal adviser Aneeka Savahl.How could Truworths be so misinformed of its obligations when using an aggregator, I asked SMSPortal's legal adviser, Dominic Cull."SMSPortal hadn't made it clear to Truworths what its responsibilities were under the code," said Cull. "The agreement was signed seven years ago ... and should have been updated."He would meet the retailer next week to resolve the issue.So where did Truworths get Paterson's number? The adjudication report named Blue Label as the source, saying the retailer had used it to "refresh" some of its contact data.story_article_left3But following my query to Blue Label, it turned out Paterson's number came from another source - Information Capital, described as "a leading provider of qualified consumer leads", with more than 40million consumers on its database.CEO Steve Monty said Paterson's ID number was bought from the deeds office database, checked against the Direct Marketing Association's opt-out database and sold to Truworths. Truworths checked Paterson's credit rating at the credit bureau, and his cellphone number was bought from the bureau.Monty said Truworths ran the ID and cell number against the opt-out database. (Paterson has since registered on the database.)Under the new Protection of Personal Information Act, which promotes transparency in the way information is collected and processed, companies will have to get specific consent from consumers to share their information. The act was signed into law in 2013, but the government has yet to announce a commencement date.Key to Paterson's victory was that he insisted on pursuing his gripe through Waspa's free adjudication process. It's time other spam victims did the same.Visit waspa.org.za to lodge complaints. Register on the Direct Marketing Association's database, nationaloptout.co.za. This won't stop SMS and e-mail spam from non-DMA members. Tune in to Power98.7's "Power Breakfast" at 8.50am tomorrowsub_head_start Contact Megan Power sub_head_endE-mail: consumer@sundaytimes.co.zaFollow Megan on Twitter: @Power_ReportTune in to PowerFM 98.7's 'Power Breakfast' (DStv audio channel 889) at 8.50am on Monday to hear more from MeganPlease note: Other than in exceptional circumstances, readers sending me complaints must be willing to be identified and photographed...

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