Consumer Protection Act: These are the activities that customers are protected from
Consumers will often hear the National Consumer Commission is investigating prohibited conduct, but not always know what that means.
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The Consumer Protection Act protects consumers against various kinds of prohibited conduct by a supplier of goods or services.
The first place to look for what it means is in the definitions in section 1 of the Consumer Protection Act (CPA). It defines prohibited conduct as any act or omission that is inconsistent with the Act.
Sections 4, 51 and 60 also point out specific prohibited conduct, while various other sections also stipulate what it is regarding a specific issue.
Section 4
According to section 4, which deals with the realisation of consumer rights, nobody is allowed to engage in conduct that is contrary to the objects and policies of the Act or do anything that frustrates or overturns its objectives when negotiating with a consumer during the ordinary course of business.
This section also stipulates that nobody is allowed to engage in unscrupulous, misleading or dishonest conduct, or conduct likely to mislead or defraud consumers, or make a representation about a supplier, goods, or services, unless that person has reasonable grounds to believe it is true.
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Section 51
Section 51 states exactly what prohibited transactions, agreements, bargaining or conditions are. This includes that a supplier cannot make a transaction or agreement subject to conditions that will obstruct the aims and policies of the Act, mislead or defraud the consumer or subject the consumer to fraudulent behaviour.
The supplier may also not directly or indirectly deprive consumers of their rights under the Act and nobody is allowed to do anything that to avoids a supplier’s obligations or duties under the Act or set aside or overturn the effect of a provision of the Act.
Conditions can also not authorise the supplier to do anything unlawful under the Act or failure to do anything required by this Act. The conditions may also not directly or indirectly limit or waive the supplier of goods or services’ liability for loss if the loss is actually due to the supplier’s gross negligence. It is also prohibited to make the consumer bear the risk or liability for damages.
Section 60
According to Article 60, the National Consumer Commission (NCC) must promote the development, adoption and application of industry-wide codes of practice, which provide for effective and efficient systems to receive notification of consumer complaints or reports of product defects, defects or hazards.
It also includes returning goods due to a defect or hazard, personal injury, illness or damage to property and other indications of defect or danger, injury or damage.
The NCC should also monitor the information to ascertain and identify the possible risk of use and investigate the nature, causes, degree and degree of the risk, inform consumers of the nature, causes, degree and degree of the risk and, if it is unsafe, ensure that it is recalled for repairs, replacement or repayment.
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Other prohibited conduct
Other sections of the Act also further state what is prohibited conduct, such as:
- Suppliers cannot exclude anyone from accessing goods or services or charge different prices for goods or services, or target or exclude particular communities, districts, populations or market segments for exclusive, priority or preferential supply of goods or services.
- Direct marketers are not allowed to call people at times excluded by the Act and must remove people’s names from their lists if the consumers ask them to and companies must adhere to the cooling-off period.
- Companies must not refuse to cancel fixed-term agreements and cannot charge penalties that will make it too expensive for consumers to cancel.
- Workshops are not allowed to do work that the consumer did not approve beforehand.
- Companies may not refuse to cancel reservations under certain circumstances.
- Shops cannot refuse to take goods back under certain circumstances or refuse repairs or refunds.
- Providers of products and services may not use complex and incomprehensible language when working with consumers.
- Retailers must affix prices and product descriptions on products in accordance with the Act.
- It is also forbidden not to inform consumers that products are grey or rebuilt.
- Retailers must give consumers a proof of payment or receipt when they buy something.
- Suppliers must not make false or misleading representations or mislead or defraud consumers.
- A supplier may not advertise goods or services at a specified price that could mislead consumers or give them a false impression about the availability at the advertised price.
- Negative marketing, for example, where consumers are subscribed to a service and then have to indicate that they do not want it, is also prohibited.
- Merchants may not refuse to accept coupons or vouchers that are still valid. Coupons or vouchers must stay valid for three years.
- Companies are not allowed to let consumers know that they have won a competition if no competition has actually been held, the consumer has not actually won the competition, the prize is subject to a previously unknown condition or if the consumer needs to do something more to get the prize.
- Nobody is allowed to make false representations about the availability, profitability, risk or other material aspect of work for consumers.
- Businesses must not expect a consumer to give the names of consumers in exchange for discounts.
- It is also forbidden to enter into an agreement with someone who is not competent, such as children under 18 or mentally challenged people.
- Unscrupulous conduct is also prohibited conduct and includes physical violence, coercion, undue influence, pressure, harassment and unfair tactics in marketing or supplying goods or services, concluding an agreement or collecting payment.
- False, misleading or deceptive representations are also prohibited conduct.
- Fraudulent schemes and offers are also prohibited and include that people are not allowed to pretend they represent a company if this is not the case and that no one is allowed to pretend that they are producing or multiplying money.
- Pyramid schemes and participation in them are also prohibited behaviour.
- At an auction, prohibited conduct includes an owner or his representative bidding without the other bidders knowing about it.
- Merchants are allowed to pretend to be able to provide goods or services they cannot provide.
- Companies may not use any contract terms listed in the Act and Regulations in consumer agreements.
- The terms of agreements may also not be changed unilaterally.
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