What is the Consumer Protection Act in South Africa?
Overview
South African National Consumer Protection Act 68 of 2009 became effective on April 1, 2011. The purpose of the Consumer Protection Act (CPA) is to “promote fairness, transparency, and sound business practices between Suppliers of Goods and Services and Consumers of Such Goods and Services.”
The creation of the CPA was a direct outcome of the Department of Trade and Industry’s (dti) desire to “develop and promote an economic environment that supports and strengthens a culture of Consumer rights and duties.” All agreements made before 1 April 2011 are not covered by the Consumer Protection Act, but all providers of products and services after this date must adhere to its regulations.
CPA
The Consumer Protection Act outlines the rights of the consumer and the supplier’s obligations. By codifying a common law for consumer rights, South Africa imitates many developed nations and aligns itself with the EU and UN principles on consumer protection.
Creating a legal framework with the following goals will help consumers: create a fair, easily accessible, and efficient marketplace; lessen the barriers that vulnerable consumers face when trying to access goods or services; protect consumers from unfair trade practices; promote responsible consumer behavior; advance consumer empowerment; and provide an effective system of recourse for consumers.
Who is protected by CPA?
Consumers
A person or Juristic Person (a legal body with revenues or assets under R2 million) to whom products or services are sold, who has engaged in business with suppliers, consumers of specific products, or service users or beneficiaries.
Suppliers
A company or other organization that provides goods or services in South Africa. Any tangible items, immaterial products, and legal interests in real estate are all considered to be goods. Any task or activity carried out by one person for the direct or indirect benefit of another is referred to as a service. This includes legal advice, financial assistance, the assumption of risk, transportation, and the provision of lodging, food, or similar services.
NINE RIGHTS the Consumer Protection Act (CPA) GIVES CONSUMERS:
Consumer Right No. 1: Protection against Discriminatory Marketing Practices and the Right to Equality in the Consumer Market
Privacy is the second consumer right.No.2
Third-ranked consumer right: freedom of choice No.3
Fourth consumer right: Information disclosure No.4
Right to Fair and Responsive Marketing (Article 5) No.5
The sixth consumer right is the right to honest and fair trade.
Right to fair, just, and reasonable terms and conditions is the seventh consumer right.
Right to fair value, good quality, and safety is the eighth consumer right.
The ninth consumer right calls upon suppliers to be accountable.
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REPORTING PROCEDURE
It is advised that customers first try to resolve their issues with the supplier. If the complaint is not satisfactorily resolved, a dispute resolution agent should be consulted. Minor complaints will be forwarded by the National Consumer Commission to provincial offices, who will then escalate the case to provincial consumer courts. Individual complaints will only be resolved by the Commission/Tribunal as a last resort. Lastly, the National Consumer Commission investigates issues and refers via way of the Consumer Tribunal. The Consumer Tribunal has the power to determine that the CPA has been broken, to mandate practice adjustments, to impose administrative fines, and to enjoin the continuation of future illegal actions.