Edgars: 28 November 1997
28 November 1997


The Director General
Office of the Deputy President

Attention: Advocate M Gumbi

Dear Sirs

DRAFT OF OPEN DEMOCRACY BILL (NOTICE 1514 OF 1997 – GOVERNMENT GAZETTE 18381)

1. Background to the Edgars Group of Companies

The Edgars Group, as you may be aware, is a leading speciality retailer of clothing, footwear, and accessories. The Group trades under the style Edgars, Sales House, Jet Cuthberts and ABC throughout Southern Africa from some 600 trading outlets. The Group retains a base of customer accounts in excess of 3,6 million in number. The Group relies heavily on its account base for a significant portion of retail sales and maintains regular communication with its customer account holders through the mail. The mail is used as the medium to distribute merchandise promotional literature, sale notifications and general information to all account holders.

2. SACOB and the Direct Marketing Association submission on the Bill

As a member of both SACOB and the Direct Marketing Association of Southern Africa, the Edgars Group fully associates itself with and supports the submission containing commentary and suggestions on the draft bill as provided by SACOB and the Direct Marketing Association.

3. Impact of the Bill on specifically the business of Edgars

Sections 54 and 56, as read with sections 58 and 59, which all relate to the disclosure and usage of information held on private data bases could impact significantly on our business in the context of individual consent to disclosure of information.

We note from the draft bill that the nature of the consent to be granted, manner, timing and associated issues are to be fully dealt with by way of regulations. The number of accounts currently held by ourselves (as well as other like organisations) would make it extremely difficult, if not impossible, to obtain the express consent of each and every account holder for purposes contemplated in Sections 54 and 56 of the bill.

We would accordingly request that in framing the regulations the administrative and practical issues be borne in mind. The administrative activities and costs associated with obtaining the express consent of customers would be enormous for an organisation such as ours (with our 3,6 million account holders).

We submit that imposing on a data-base holder the obligation to give effect to the specific instructions of a customer (i.e. to expressly record their denial of consent) would be far more appropriate than imposing on the data-base holder the obligation to obtain the express consent of a customer.

We respectfully request that our submissions as contained herein, as well as the submission of SACOB and the Direct Marketing Association be favourably considered. We are of the view that the content of the two submissions aforementioned if taken into account when the final bill and regulations thereto are framed, would add value to the process.

Should you have any queries with regard to the content hereof, do not hesitate to contact the writer directly.

N V TOERIEN
GROUP SECRETARY AND LEGAL COUNSEL