For many professionals, including real estate agents, direct marketing is an everyday tool to secure new business leads. However, recent updates to the Regulations under the Consumer Protection Act (‘the CPA’), which came into effect in mid-April, have tightened compliance by creating mechanisms for consumers to opt out of unwanted direct marketing. In this informative guideline, we answer key questions emanating from the latest regulatory updates – and how they may impact your business moving forward.
What has changed under the CPA?
On 15th April 2026, government published the Consumer Protection Act Amendment Regulations (‘the Regulations’). These amendments significantly expand and operationalise the rules governing direct marketing under the CPA. Specifically, the amendments principally revise Regulation 4. In practice, the revisions establish an opt-out registry administered by the National Consumer Commission (‘the NCC’) and introduce new registration, opt-out, and database cleansing obligations for businesses engaging in direct marketing.
Who is affected by the update? And does this include estate agents and property agencies?
The new rules apply to any person or business that engages in direct marketing to consumers. This may include estate agents and property agencies that make outbound prospecting calls or send unsolicited marketing communications to potential clients.
If your agency cold-calls potential sellers or landlords, sends unsolicited WhatsApp or SMS campaigns, emails prospecting lists, or uses purchased lead databases, your business will likely fall within the scope of the amended Regulations. The Regulations define a ‘direct marketer’ broadly as a person who engages in direct marketing, namely a person who approaches a consumer – in person or via electronic communication – for the purpose of, inter alia, promoting the supply of goods or services. As such, real estate professionals should carefully assess their marketing practices and not assume they are exempt merely because they operate within the property sector.
What forms of communication constitute ‘direct marketing’?
The amendments apply to unsolicited direct marketing communications made through electronic or telephonic channels. This may include phone calls, SMS campaigns, WhatsApp messages, bulk emails, and similar electronic communications aimed at promoting the provision of services or soliciting business.
The Regulations expressly refer to direct marketing conducted ‘by telephone, email, SMS or other electronic communication’. If an agency contacts consumers who have not specifically requested to be contacted for marketing purposes, those communications may fall within the scope of the CPA.
How do I register my agency as a direct marketer?
Businesses engaging in direct marketing are required to register on the NCC-administered opt-out registry using the prescribed Direct Marketer Registration Form contained in Annexure P to the Regulations (page 13).
The registration process requires businesses to submit prescribed company and contact information together with the applicable registration fee. Registration must be renewed annually on the anniversary date of registration.
Although further operational guidance from the NCC may still clarify whether registration obligations apply at agency, branch, or individual representative level, the current expectation is that registration will occur at entity level.
Businesses should also ensure that their registration details remain accurate and up to date.
What fees must be paid?
The Regulations prescribe the following fees for 2026 in Annexure N (page 11):
- Initial registration fee: R2 574.00
- Annual renewal fee: R1 930.50
- Cleansing fee: R0.12 per data entry
The Regulations further provide for annual escalations in these fees over the following years.
The initial registration fee is payable upon registration. Renewal fees are payable annually, while cleansing fees apply each time a database is cleansed against the NCC registry.
What are the ongoing obligations of registered direct marketers?
Once registered, direct marketers must comply with several ongoing obligations under Regulation 4, including:
Monthly database cleansing
Direct marketers must cleanse their marketing databases against the NCC’s opt-out registry on a monthly basis and remove consumers who have registered pre-emptive blocks. The precise technical implementation process, however, may still be clarified by the NCC.
No marketing to blocked consumers
A direct marketer may not market to any consumer who has registered a pre-emptive block on the registry.
Identification requirements
Direct marketing communications must clearly identify the sender. Accordingly, communications must include the marketer’s name, electronic address, physical address, and contact number.
Registration prerequisite
Businesses engaging in direct marketing may not contact consumers for direct marketing purposes unless registered on the NCC-administered opt-out registry.
Annual renewal
As stated, registration must be renewed annually in accordance with the Regulations.
What is a ‘pre-emptive block’?
A pre-emptive block refers to a consumer’s registration on the NCC opt-out registry to prevent unwanted direct marketing communications.
Once a consumer registers a pre-emptive block, direct marketers are prohibited from contacting that consumer for direct marketing purposes under the CPA regime.
How can consumers register a pre-emptive block?
Crucially, consumers may register a pre-emptive block by completing the prescribed Consumer Pre-emptive Block Form contained in Annexure O (page 12) to the Regulations.
The NCC is responsible for administering the registry and making the relevant mechanisms available to consumers.
Given the updates, what information must marketing messages include?
To promote transparency and accountability, direct marketing communications must clearly identify the sender. To that end, the Regulations require marketers to ensure that recipients are able to identify the marketer’s:
- Name;
- Electronic address;
- Physical address; and
- Contact number.
Can estate agents still contact consumers who previously consented to marketing?
Once a consumer registers a pre-emptive block, direct marketers are prohibited from contacting that consumer for direct marketing purposes under the CPA framework, even where the marketer previously held that consumer’s details or prior consent.
Businesses should therefore ensure that opt-out requests and registry blocks are properly incorporated into their compliance processes.
How do the CPA amendments interact with POPIA?
The CPA amendments operate alongside, and do not replace, obligations under the Protection of Personal Information Act (‘POPIA’).
Businesses engaging in direct marketing must still comply with POPIA’s requirements regarding lawful processing and electronic direct marketing, including section 69 of the Act where applicable.
The CPA registration, opt-out, and cleansing obligations should therefore be read together with existing POPIA obligations in a manner that promotes consumer protection and lawful marketing practices.
What happened to the old DMASA opt-out registry?
Before the latest amendments, the Direct Marketing Association of South Africa (‘DMASA’) operated a voluntary opt-out registry on behalf of the NCC, which primarily applied to DMASA members.
The amended Regulations introduce a compulsory NCC-administered opt-out registry that applies more broadly to direct marketers. Businesses that previously relied on DMASA participation for compliance purposes should thus note that the NCC registry now governs compliance under the CPA framework.
Is there a grace period?
No. The Regulations came into effect immediately on 15th April 2026 upon publication – and the Regulations do not provide for a transitional or grace period.
However, certain operational aspects of implementation may still require further practical guidance from the NCC.
What are the penalties for non-compliance?
Failure to comply with obligations under the CPA may expose businesses to enforcement action by the NCC.
Accordingly, the Commission may issue compliance notices under section 100 of the CPA requiring businesses to remedy non-compliance. Failure to comply with a compliance notice may constitute a criminal offence.
In addition, the National Consumer Tribunal may impose administrative fines in terms of the CPA, which may reach up to 10% of annual turnover or R1 000 000, whichever is greater.
How does the monthly ‘cleansing’ requirement work?
The Regulations define ‘cleansing’ as the process of removing consumers who have opted out of electronic communications from a direct marketer’s database to ensure they are no longer contacted.
Direct marketers are required to cleanse their databases against the NCC registry on a monthly basis. In practice, businesses will need to compare or reconcile their marketing databases against the registry in accordance with the NCC’s operational processes once fully implemented.
As stated, the Regulations prescribe a cleansing fee of R0.12 per data entry.
Does a consumer’s prior consent still matter if they later register a pre-emptive block?
A consumer who registers a pre-emptive block may not lawfully be contacted for direct marketing purposes under the CPA regime, even where the marketer previously held that consumer’s details or prior consent.
Businesses should therefore ensure that registry blocks and direct opt-out requests are consistently honoured across all marketing databases and platforms.
Key takeaway for readers
Real estate agents and businesses that rely heavily on outbound prospecting or unsolicited direct marketing communications should urgently review their compliance processes, database management practices, and marketing procedures in light of the new regulatory framework.
For sound legal guidance and assistance, contact our experienced team today.
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