Era Gunning, a senior associate of ENSafrica’s banking and finance department writes:
The Consumer Protection Act (CPA) became law on 1 April 2011 and sets out the minimum requirements to ensure adequate consumer protection in South Africa.
The CPA aims at promoting fairness, openness and good business practices. All suppliers of goods and services need to comply with the Act.
The CPA covers a wide range of factors aimed at protecting consumers, including the following:
- Fixed-term contracts: In terms of Section 14 of the Act, a person can cancel a fixed-term contract, but the supplier can charge a reasonable cancellation fee.
- Direct marketing: The CPA sets out days and times that consumers may not be contacted for direct marketing purposes. Section 16 of the Act provides for a cooling-off period of five business days for a consumer who has bought goods as a result of direct marketing.
- Language: Information does not have to be in a specific official language, but it must be plain and understandable which is appropriate to the group that the goods or services are aimed at.
- Overselling and overbooking: A supplier may not accept payment for goods or services where it has no reasonable intention to supply the goods or services, or where it intends to supply goods or services that are very different to the goods or services for which the consumer has paid.
- Implied warranty of quality: The Act provides for an implied warranty of quality. This means that the producer, importer, distributor and retailer each warrant that the goods comply with the requirements and standards set out in the CPA.
- Prepaid certificates, credits and vouchers: Gift cards or similar vouchers must stay valid for at least three years unless they have been redeemed.
Product liability: One of the most controversial and far-reaching implications of the CPA for suppliers is the imposition of strict or no-fault liability for damage caused by goods. Section 61 provides for liability for any harm caused as a result of the supply of any unsafe goods; product failure, defect or hazard in any goods; or inadequate instructions or warnings provided to a consumer regarding any hazard arising from or associated with the use of any goods.
It is said that South Africans are now the most protected consumers in the world.
Details: ENSafrica or click here for more details. 011 555 0980.
