8) Consumer protection act (CPA)

• Purpose

  • Promotes responsible consumer behaviour
  • Establishes a National Consumer Commission (NCC)
  • Establishes national standards to protect consumers
• Impact

  Positives

  • Businesses safeguarded from dishonest competitors
  • Gain consumer loyalty, if comply with CPA
  • Prevents larger businesses from undermining smaller ones
• Impact

  Negatives

  • Penalties for non-compliance high
  • Confidential business information may become available to competitors
  • Businesses may feel unnecessarily burdened by legal processes
• Discriminatory actions

  • Charging unfair prices for same goods and services
  • Treating customers differently based on gender/age/race
• Penalties for non-compliance

  • Business face fines or imprisonment for a period not exceeding 10 years.
  • Contract may be rendered void or fine or term of direct imprisonment may be imposed.
• Ways to comply

  • Disclose prices of all products on sale
  • Provide adequate training to staff on the CPA
  • All agreements must provide for 5-day cooling off period
• Consumer rights

  Right to choice:

  Consumers have the right to:

  • choose suppliers and/ or goods
  • shop around for best prices
  • cancel/ renew fixed term agreements
• Consumer rights

  Right to privacy:

  Consumers have the right to:

  • Consumers have right to stop/ restrict unwanted direct marketing
  • Can object to unwanted promotional emails/ telesales
• Consumer rights

  Right to information about products and agreements:

  Consumers have the right to:

  • Business label products and trade descriptions correctly
  • Consumers may request unit and bulk price of same product
  • Business display prices which are fully inclusive disclosing all costs
• Consumer rights

  Right to fair/responsible marketing/ promotion:

  Consumers have the right to:

  • Businesses should not mislead consumers on pricing, benefits/ uses of goods
  • Consumers may cancel purchases made through direct marketing within five working days/ cooling off-period
• Consumer rights

  Right to accountability from suppliers:

  Consumers have the right to:

  • Businesses should honour credit vouchers and prepaid services
  • Consumers have right to be protected in lay-bye agreements
• Consumer rights

  Right to fair terms and conditions:

  Consumers have the right to:

  • Businesses may not market/ sell goods at unfair prices
  • Businesses should provide consumers with written notices of clauses that may limit consumer rights
• Consumer rights

  Right to equality in the consumer marketplace:

  Consumers have the right to:

  • Businesses should not limit access to goods and services
  • Businesses may not charge different prices for same goods/services
• Consumer rights

  Right to return goods/claim a refund:

  Consumers have the right to:

  • Faulty items may be returned for a full refund
  • Goods that are unsafe/ defective may be replaced by supplier
• Consumer rights

  Right to complain:

  Consumers have the right to:

  • Complain via customer care desks/ consumer hotlines/ ombudsman, etc.
  • Consumers may use various methods/ channels to complain about poor quality goods/ services.
• Consumer rights

  Right to quality goods and services:

  Consumers have the right to:

  • Cancel/ renew fixed term agreements
  • Consumers may demand quality services/ goods
  • May receive an implied/ written warranty