September 2008

The New Consumer Protection Bill is set to provide an encompassing framework in order to protect the South African consumer against unlawful, unfair and discriminatory practices of the consumer market. The market will be transformed by this bill and consumers will have more rights than ever before. This in turn will have a huge impact on the whole value chain, which ranges from the manufacturing to selling products or services.

What impact will the bill have on the business industry?

Consumers will have the right to hold the manufacturer, or even the supplier who gave the flawed material to the manufacturer liable for their actions, where they only had the right to hold the seller of a value add product responsible to date. This will make suppliers, manufacturer and sellers re-evaluate the way they do business and the level of quality they are willing to accept.

The bill will also apply to every business transaction in SA, ranging from the supply of goods or services to even advertisements. This may have an enormous impact on the cost of goods and the way a business will supply its goods. Businesses may have to make provision for this in their supply costs. To cover overheads businesses might transfer these cost to the consumer throughout the whole value chain.

In certain instances, the Bill will also have retrospective application and may apply to agreements entered into before the Bill is disseminated.

How will the bill benefit the consumer?

Consumers will have more rights available than ever before and will be able to hold companies accountable for their unfair actions and quality management. Even though businesses may shift the overall cost the consumer, consumers will be getting better quality goods and services. Consumer rights will include equality in the consumer market; privacy; consumer choice; disclosure of information; fair and responsible marketing; honest dealing and fair agreements; fair value, good quality and safety; and the right of the consumer to hold the supplier accountable for its actions.

The overall aim of the bill is to establish a market with fair, accessible and a sustainable market and prohibiting unfair practices currently pursued in the market. No longer will consumers not have a say, but suppliers will have to listen and take accountability in the cacophony of unfair practises.

Progress in the implementation of the Bill

The bill has been voted in on the 23 of September 2008 and is now in wait for the president to sign it off and have it enacted. After enactment A National Consumer Commission is to be created to protect the consumer and to ensure that consistent enforcement measures are adopted. Consumer protection groups will have the duty to educate the public, conduct research, promote consumer interest, promote alternate dispute resolutions and participate in national and international activities for the protection of the consumer. The National Consumer Commission will be empowered to investigate complaints by the public, issue compliance notices and refer matters to the Tribunal or to alternative dispute resolution forums.

Certain amendments have been made where certain institutions such as credit providers are excluded from this act as they are governed by the NCA, which already protects consumers significantly. Businesses and consumers must keep in mind that where two acts come into play and where the industry will be governed by both, the most weight will be given to the Act protecting the consumer the most.

Educate yourself today

It is evident that it is very important that consumers, as well as suppliers, be educated on the finer print of the Consumer Protection Bill once enacted. The effects on your business or personal life might be significant if you are not aware of your rights as a seller, supplier, manufacturer or consumer.

Compuscan Skills Training Institute (CSTI) will soon have a course ready to educate businesses and consumers on the impact of the bill once enacted. You can not afford to miss out on this value added opportunity! Remember knowledge is power!