Coming soon, the CONSUMER PROTECTION ACT MADE EASY: IMPLEMENTATION MANUAL
(Enquiries)
There has been a coup in the business law arena: the Consumer Protection Act will forever change the way that South African organisations do business.
The Act will apply to virtually every business, organisation (including unions and non-profit organisations) and the government. It will even apply to municipalities.
Consumers will be entitled to demand quality goods and services and suppliers will be strictly liable for ALL damages resulting from defective products, even if they were not at fault.
The Consumer Protection Act is like a Constitution for Consumers, giving them a “bill of rights”, including the right:
- To choose
- To disclosure and information
- To fair and responsible marketing
- To fair and honest dealing
- To fair, just and reasonable terms and conditions
- To safe and reliable products and services
- To effective redress of complaints.
Four good reasons why you should get your organisation and staff ready for the Consumer Protection Act now (it goes live in October 2010).
1. You will avoid making the headlines e.g. “FAIS Ombudsman hammers the JD Group” (www.debtslfhelp.co.za).
2. You will avoid the imposition of a fine of up to R1 000 000 or ten per cent of your annual turnover.
3. You will avoid ending up at the “New CCMA” (the Consumer Commission).
4. You will have an advantage over your competitors.
FREQUENTLY ASKED QUESTIONS
Q When will the Consumer Protection Act come into effect?
A. On 25 October 2010. That is not so far into the future, considering nothing happens between mid-November and the beginning of February and during April.
Q Must we wait until the regulations are passed?
A. No. The regulations should be available early 1010, but all they will do is provide more detail on matters such as which contracts are to be in writing. In the meanwhile, you should establish which sections will apply to your organization and whether it matches up to what is required of it.
Q. Will the Act apply to business-to-business transactions?
A. In some instances a business will have the right of a consumer under the Act if its asset value or annual turnover is beneath the threshold value set by the Minister. This is likely to be R5 million initially.
Q My business has a policy/warrantee/ agreement terms that say something different to the Act. Will they still be valid?
A. No. No agreement of term may be contrary to what the Act requires. For example, a supplier may not have a term in an agreement that excludes it for liability even if it has acted in a grossly negligent manner.
Q. Does the Act apply for franchisees?
A. Most of the sections of the Act apply to Franchisees.
Exceptions: Delivery (Section 19)
Catalogue selling (Section 33)
Trade coupons (Section 34)
Referral selling (Section 38)
Over-selling/booking (Section 47)
For more information about how we can help you to prepare your organisation for the Consumer Protection Act, contact us now.
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