NEW LAW GIVES CONSUMER MORE POWER

New law gives consumers power
Apr 30 2009 21:03
Johannesburg - The Consumer Protection Bill has been signed into law by President Kgalema Motlanthe, the department of trade and industry (dti) said on Thursday.
"The primary purpose of the new Act is to prevent exploitation or harm on consumers and to promote the social well-being of consumers," the dti said in a statement.
Motlanthe signed it on April 24 and it was gazetted on April 29.
The Consumer Protection Act would introduce general principles of consumer protection and would serve as an overarching governing statement on consumer protection matters in South Africa.
It aimed to create a strong culture of consumer rights and responsibilities, as well as to promote a fair, efficient and transparent market place for consumers and business, the dti said.
Nomfundo Maseti, the acting deputy director general in the dti, said the primary purpose of the act 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, amongst 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 may return the goods to the supplier, without penalty and at the supplier's risk and expense, if the goods fail to meet the required standard," said Maseti.
Consumers were now empowered to cancel contracts if not satisfied with the terms of contract.
Unscrupulous
Further, consumers would have a final say in whether they would like their contracts to be renewed or not.
"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 added.
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 after a period of 18 months from the date the president signed the bill.
"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.
The act replaced existing provisions from five acts, including the Consumer Affairs (Unfair Business Practices) Act of 1988, Trade Practices Act of 1976, Sales and Service Matters Act of 1964, Price Control Act of 1964, and Merchandise Marks Act of 1941 (specifically Sections 2-13, and 16-17).
- Sapa