Consumer Protection Act.

[BinaryJack]

I thought it is absolutely vital for every business of any nature, size and format to start looking at this act and become proactive in it's application of the act.

At first glance it looks like "Seller Beware!" but after some thorough discussions with colleagues and various managers, it is clear that after the initial growth pains (there will be many) this stands to benefit not only the consumer but ultimately businesses.

An educated consumer will have higher expectations regarding the price, the product and most importantly the service and only be delivering on these three aspects and exceeding the educated consumers

By focusing on these 3 simple but crucial aspects of any business, you will be able to adapt to the Act and capitalise on it.

Each type of business will be impacted on different levels of Price, Product & Service.
It is going to be mighty interesting to see how companies like Vodacom, Multichoice, Telkom, SABC and Telkom will be adapting to the act.

The main day to day change that will take in affect will be administration.
Our T&C's has gone from 1 page to 2 in order to ensure that they are clear, understandable and concise.
We are now also looking at including multiple languages for the T&C's in order to avoid any miscommunication and misinterpretation.

In my business specifically we will be looking at clients that will be looking at abusing the system.
We have made suggestions of creating a "Fund" to assist with these claims as we do not want to even appear in front of the Tribunal.
The tribunal can fine any business 10% of their annual turnover or R1 000 000 if found liable.

I have included the Act below and I think it is imperative that we as managers and business owners communicate in order to adapt.

All details of the Act is subject to change without notice.

http://www.dti.gov.za/ccrd/cpact09.pdf

http://www.dti.gov.za/ccrd/Consumer_protection_bill.pdf

 

[Venomous]

there's a lot there

but thank you i'm sure a few of us will find this helpful.

 

[Other Pineapple Smurf]

Was discussing the business approach with my wife when the act comes into place. Our approach for her business is going to be ask no questions, take back the product and refund the customer. I expect a peek of customer complaints the first few months but the novelty will die down.

At least my wife is glad to hear she now has recourse against her suppliers, many who will not take back faulty products. Its a big problem in her industry (Hair Salons).

The only thing though is I need to know audit her stock before the act so we know what stock we can return and what stock we are stuck with.

 

[broken1]

I really hope this act does benefit the consumer, and gives us some ammo when dealing with large corporates.

I also hope that it doesn't affect the "small guy" too badly.

 

[phiber]

thanks, really hope this makes our lives easier, its great that its there, but companies better behave. Don't want to have to see 10 court cases before all the companies learn their lesson!

 

[bokka1]

I am just worried that people will abuse the system.

 

[Hard Rain]

People actually think this is about "protecting" the consumer or holding bad businesses to "account" for their transgressions? I had to lol. It's just another horrific expansion of State interventionism into the private lives and private transactions of private citizens and firms. Never mind the wonderful rent-seeking opportunity this ubiquitous "tribunal" provides. Large companies can take the hit on multi-million Rand fines, but what about their smaller competitors?

Quick question for Kage: are you some kind of business or legal consultant by any chance?

 

[Ianf1]

How does this affect personalised services like haircuts. What if someone says complains after the service and it becomes a he said she said argument. With a small business you generally let the customer get away with the first complaint but are wary with dealing with them a second time. If someone used this with me unreasonably I would refund get the printing back but then tell them never to come back as their needs can't met here.

 

[Quest10n]

I am just worried that people will abuse the system.

Abuse is inevitable because the consumer was abused all these years. So yeah expect it and deal with it.

 

[Quest10n]

I thought it is absolutely vital for every business of any nature, size and format to start looking at this act and become proactive in it's application of the act.

At first glance it looks like "Seller Beware!" but after some thorough discussions with colleagues and various managers, it is clear that after the initial growth pains (there will be many) this stands to benefit not only the consumer but ultimately businesses.

An educated consumer will have higher expectations regarding the price, the product and most importantly the service and only be delivering on these three aspects and exceeding the educated consumers

By focusing on these 3 simple but crucial aspects of any business, you will be able to adapt to the Act and capitalise on it.

Each type of business will be impacted on different levels of Price, Product & Service.
It is going to be mighty interesting to see how companies like Vodacom, Multichoice, Telkom, SABC and Telkom will be adapting to the act.

The main day to day change that will take in affect will be administration.
Our T&C's has gone from 1 page to 2 in order to ensure that they are clear, understandable and concise.
We are now also looking at including multiple languages for the T&C's in order to avoid any miscommunication and misinterpretation.

In my business specifically we will be looking at clients that will be looking at abusing the system.
We have made suggestions of creating a "Fund" to assist with these claims as we do not want to even appear in front of the Tribunal.
The tribunal can fine any business 10% of their annual turnover or R1 000 000 if found liable.

I have included the Act below and I think it is imperative that we as managers and business owners communicate in order to adapt.

All details of the Act is subject to change without notice.

http://www.dti.gov.za/ccrd/cpact09.pdf

Thanks Kage!

 

[Quest10n]

How does this affect personalised services like haircuts. What if someone says complains after the service and it becomes a he said she said argument. With a small business you generally let the customer get away with the first complaint but are wary with dealing with them a second time. If someone used this with me unreasonably I would refund get the printing back but then tell them never to come back as their needs can't met here.

I don't understand, what printing? How does this fit into a haircut complaint?

 

[Ianf1]

I don't understand, what printing? How does this fit into a haircut complaint?

Both are a personalised service with no value to the supplier when returned! Since we are a small shop we don't even get money for our waste paper it is picked up from us as a service.

 

[bokka1]

Abuse is inevitable because the consumer was abused all these years. So yeah expect it and deal with it.

Where was the consumer abused? You let it sound as if all suppliers abused their consumers.

Why must the law protect you if you entered a legally binding contract on your own volition and realise later you made a mistake. Tough cookies, learn from your mistakes.

This law is going the same way as the NCA, very good intentions but a **** up in reality.

 

[BinaryJack]

People actually think this is about "protecting" the consumer or holding bad businesses to "account" for their transgressions? I had to lol. It's just another horrific expansion of State interventionism into the private lives and private transactions of private citizens and firms. Never mind the wonderful rent-seeking opportunity this ubiquitous "tribunal" provides. Large companies can take the hit on multi-million Rand fines, but what about their smaller competitors?

I dont agree with your viewpoint on this regarding it being "State interventionism" (sp) although I can see how you could misconstrue it as such.
Any business from SME's to large international corporations will have to adapt to this and recognise it for what it is: a way to improve in regards to the price, product and service.
Only through that will a company grow in Turnover, profit and margin.

Quick question for Kage: are you some kind of business or legal consultant by any chance?

No comment.

 

[BinaryJack]

Both are a personalised service with no value to the supplier when returned! Since we are a small shop we don't even get money for our waste paper it is picked up from us as a service.

Well then now it is time to be a bit more clever about it:
Draw up T&C's.
Do proofs for clients which they sign off with a 50% non refundable deposit.
On delivery of end product you get the other 50%.
(50% is just a random number, you can change this to better suit your clients and costs.)

If there is only 1 piece of information you take away, let it be Terms & Conditions.
Your Terms & Conditions will be the only way you will be able to protect yourself and your client.

I would strongly suggest that if you are serious about your business, you start looking at this from a business perspective. Go and get some professional advice regarding the act and how best you can protect your business and your client.
Your client and business goes hand in hand, now even more so.

 

[[Quattro]]

Abuse is inevitable because the consumer was abused all these years. So yeah expect it and deal with it.

Really?

I have one, the Nandos burger has to look like it does in the pic lol!!! Ill abuse that one...

 

[Ianf1]

Well then now it is time to be a bit more clever about it:
Draw up T&C's.
Do proofs for clients which they sign off with a 50% non refundable deposit.
On delivery of end product you get the other 50%.
(50% is just a random number, you can change this to better suit your clients and costs.)

If there is only 1 piece of information you take away, let it be Terms & Conditions.
Your Terms & Conditions will be the only way you will be able to protect yourself and your client.

We do all that and use the terms and conditions from Printing Industries, I will relook at the T&Cs. Also get to know the act better than the average customer. Also we do get a quite a bit of flak on the proofing as each customer expects you know about each phone number change and resent signing away that they are responsible for proof reading.

 

[Hard Rain]

I dont agree with your viewpoint on this regarding it being "State interventionism" (sp) although I can see how you could misconstrue it as such.

Wow, cognitive dissonance. This is legislation which allows the government to interfere with the operations of, and impose penalties upon, private businesses. How is this not the exact definition of State intervention?

Any business from SME's to large international corporations will have to adapt to this and recognise it for what it is: a way to improve in regards to the price, product and service. Only through that will a company grow in Turnover, profit and margin.

I'm so glad you and the government can presuppose to know what every single business needs to do in order to maintain profitability. Ever heard of F.A. Hayek's "Pretense of Knowledge"?

It's interesting how you wouldn't directly answer my question, although your responses definitely intrigue my suspicions.

 

[BinaryJack]

Also we do get a quite a bit of flak on the proofing as each customer expects you know about each phone number change and resent signing away that they are responsible for proof reading.

Be clear with your clients and educate them.
A proof is required, as this is the only way that you are certain that the details you have for them is correct and in order. You can go as far as to allow 1 free change within 24hours.
You need to take a firmer position regarding your business.

 

[BinaryJack]

Wow, cognitive dissonance. This is legislation which allows the government to interfere with the operations of, and impose penalties upon, private businesses. How is this not the exact definition of State intervention?

I'm so glad you and the government can presuppose to know what every single business needs to do in order to maintain profitability. Ever heard of F.A. Hayek's "Pretense of Knowledge"?

It's interesting how you wouldn't directly answer my question, although your responses definitely intrigue my suspicions.

Hardrain.
Although I might be unable to fully understand or measure the impact of individuals on my business; I am however able to fully understand and measure the impact I have on my business.

I would also suggest that you don't lose any sleep regarding your suspicions.
I am of almost no consequence.