In this, the second part of our series looking at the Consumer Protection Act, that comes into effect in October this year, we will address the issue of marketing. There are a number of changes that may be required to your existing marketing campaigns, so please read this as well as other reference material on this matter, and if required please consult a legal professional and download the act for yourself.

•   The act addresses the risks associated with managing lay buys. All payments made by the customer are to be accrued to the customer and do not belong to the supplier, only when the goods have been delivered can the supplier take ownership of the monies paid.
• If you are currently in the referral market and gaining customers and leads through referrals, then you are no longer allowed to pay for these leads. This is outlined in section 38 of the act and is a little confusing, we will have to wait for a judgment to clarify this matter.
• If you are running a competition in order to gain contacts for marketing, your competition needs to be clear and transparent with no hidden clauses.
• Unsolicited marketing is no longer allowed. This means that anything sent to you that you did not ask for, you may now keep and not pay for the item.
• Unsolicited marketing in the form of phone calls, e-mails or SMS can only be done to preapproved lists where consent for such marketing has been granted.
• If you run a loyalty campaign, or any form of rewards for your customers, all credits allocated to your customer need to be treated as cash on your financial books.
• Overselling will no longer be allowed. This applies to the airlines, hotels and other industries that oversell and playing for a low show of actual customers.
• All gift vouchers must be valid for three years from date of issue.