PROTECTING SOUTH AFRICA’S CONSUMERS

The Consumer Protection Act, No. 68 of 2008 (CPA) was signed by the President on 24 April 2009, coming into effect on 1 April 2011.

This vital piece of legislation has and will continue to change the manner in which businesses conduct themselves in South Africa.  The Act aims to, among other things, promote a fair, accessible and sustainable marketplace for consumer products and services. The Act also, importantly, aims to establish national norms and standards to ensure the protection of consumers. Further, its objective is to prohibit unfair marketing and business practices.

The CPA applies to the following:

1. every transaction which occurs within the Republic of South Africa;
2. promotion or supply of any goods and services occurring within the Republic; and
3. goods or services which are supplied or performed within the Republic in terms of transactions mentioned in the Act.

The Act is not applicable to credit agreements, defined as such in terms of the National Credit Act.

A ‘consumer’ is defined as a person/s to whom goods or services are marketed, who have entered into transactions with suppliers, users of particular goods or recipients of services.

The Bill of Rights protects the rights of all of South Africa’s citizens, including those of consumers. The CPA further outlines the fundamental rights of consumers, of which all consumers should be aware. Every consumer of goods and services is entitled to the protection of their rights, regardless of the monetary value of a transaction or the significance of the product or service that a consumer buys, even if it is only a loaf of bread. These rights include:

1. Right to Equality in the Consumer Market and Protection Against Discriminatory Marketing Practices;
2. Right to Privacy;
3. Right to Choose;
4. Right to Disclosure of Information;
5. Right to Fair and Responsible Marketing;
6. Right to Fair and Honest Dealing;
7. Right to Fair, Just and Reasonable Terms and Conditions;
8. Right to Fair Value, Good Quality and Safety; and
9. Right to Accountability by Suppliers.

 The National Consumer Commission (NCC) was established in terms of the Consumer Protection Act. The NCC is the chief regulator of consumer-business interactions in South Africa. It was created by the government with the backing of the Department of Trade and Industry (DTI) to safeguard the economic welfare of consumers. Consumers are imperative to the growth of the economy and therefore contribute to the national fiscus and to the development of the country.

The NCC’s mere existence in terms of the Consumer Protection Act, which it administers, is to promote a fair, accessible and sustainable marketplace for consumer products and services, establish norms and standards relating to consumer protection, to provide for improved standards of consumer information, prohibit unfair marketing and business practices, promote responsible consumer behaviour, and to promote a consistent legislative and enforcement framework relating to consumer transactions and agreements. This simply means that the NCC registers and assesses complaints, investigates alleged misconduct by businesses, refers individual complaints to Alternate Dispute Resolution (ADR) agencies for resolution, and represents consumers in the Consumer Tribunal amongst other things.

It is important to remember that every Consumer has rights; any infringement of these rights is an act of non-compliance with the provisions of the Consumer Protection Act.

A consumer may approach the NCC for guidance or assistance with a dispute that cannot be amicably resolved.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE).