Implementing the Protection of Personal Information (PPI) Bill's requirements around data will cost local companies large amounts of money, if they have not already sorted out their databases to make sure the information is accurate.
By the end of the year companies will have to clean up their databases an exercise that is expected to cost companies billions as each organisation will have to check every bit of information they have stored for each person on their database.
The Bill will impose a number of "stringent obligations" on all companies that process personal information in any manner. Direct Marketing Association of SA (DMASA) COO Alastair Tempest says cleaning up databases is a cost that could run into billions for companies in SA. He adds that this is a process that should have been done already, and will ensure that fly-by-night marketers and contact list sellers disappear.
As a result, a company that breaches the pending Act by sending spam to 500 people would, for example, face a fine of R10 million, times 500. People who deal in financial data and breach the law face up to 10 years behind bars, he notes.
One marketing campaign that is in breach of the new law can kill a company, says Tempest. He adds this could lead to job losses at companies that do not follow the legislation's requirements if the regulator is prepared to enforce the Act when it comes into being.
This information was taken from an article on IT Web – read the full article here
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