Consumer Protection Act signed into law
The Consumer Protection Bill had been signed into law by President Kgalema Motlanthe, the Department of Trade and Industry said.
“The primary purpose of the new act is to prevent exploitation or harm (to) consumers and to promote the social wellbeing of consumers,” the DTI said.
Motlanthe signed the bill on April 24 and it was gazetted on April 29.
The Consumer Protection Act would introduce general principles of consumer protection and serve as an overarching governing statement on consumer protection matters in SA. It aimed to create a strong culture of consumer rights and responsibilities and promote a fair, efficient and transparent market place for consumers and business.
Nomfundo Maseti, the acting Deputy Director-General in the DTI, said the act’s primary purpose was to protect consumers from exploitation and unfair practices by unscrupulous businesses, and to empower consumers to make wise purchasing decisions.
“It achieves this by introducing, among others, a system of product liability and improved redress. Producers, distributors or suppliers, will be liable for any damages in the form of death, injury, loss, or damage to property and economic loss to the consumer or third party,” she said.
The act decriminalised certain conduct and subjected it to administrative sanctions, while it also enabled consumers to demand refunds if goods were of inferior quality.
Consumers were now empowered to cancel contracts if not satisfied with their terms, and would have a final say as to their renewal.
“Consumers will now be protected from the unscrupulous businesses that tend to induce them to waive the obligations and liability of the supplier in terms of agreement,” Maseti said.
The act promoted consumer activism by providing for accreditation of consumer groups for lodging complaints on behalf of consumers. It also provided for possible financial support for activities such as consumer advice, education, publications, research and alternative dispute resolution through mediation or conciliation, Maseti said.
For implementation purposes, the National Consumer Commission – an enforcement and investigative body on consumer protection issues – would be established after 12 months from the date of signing of the bill by the president.
The National Consumer Commission would then implement the act within 18 months of the signing.
“It is envisaged that the provided time period will afford business reasonable time to align their trading practices for the purposes of complying with the act,” Maseti said.’
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