On 8 July 2026, REBOSA, which represents thousands of property practitioners, wrote a well-researched letter to the Minister of Trade and Industry, demanding a retraction or amendment to the recent direct marketing regulations. The letter can be summarised as follows:
- Ultra Vires Argument
The CPA empowers the Minister to regulate the operation of a consumer opt-out registry. It does not create a compulsory registration/licensing scheme for direct marketers. The regulations go far beyond what Parliament intended.
- Section 120 of the CPA:
The general regulation making powers in section 120 do not authorize the creation of new licensing or fee obligations for direct marketers. Powers to impose fees require clear, express statutory authority, which is absent here.
- Nature of Fees:
The prescribed fees (registration, renewal, cleansing) are not “filing fees” as contemplated by the CPA, but rather licensing/participation fees without statutory basis.
- Failure to Implement Granular Opt-Outs:
The regulations do not allow consumers to block marketing from some sources but not others. This is contrary to the CPA’s intent for specific-purpose opt-outs.
- Impact on Property Practitioners and Transformation:
The regulations impose costs and administrative burdens on small and historically the disadvantaged.
Fees escalate annually, with no relief or differentiation for SMMEs or disadvantaged groups. This seeks to undermine transformation objectives in the property sector. - Procedural Concerns:
The escalated fees for future years were not published for public comment as required by the CPA, making the regulations procedurally invalid.
Conclusion
- REBOSA requests the Minister to withdraw or amend the regulations to align with the CPA’s provisions.
- If not addressed, REBOSA reserves the right to seek legal relief.
- The letter emphasizes urgency, as enforcement is set to begin 1 October 2026, and requests a substantive response within 10 days.
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