The CPA clearly spells out the rights of consumers and the responsibilities of suppliers of goods or services. By codifying the common law in relation to consumer rights, South Africa is not only following in the footsteps of many first-world countries, but also aligning itself with United Nations and European Community guidelines on consumer protection.
Last week, we have explored the main objectives of the CPA. This week, we will focus on the application of the Act.
A bit of background: Consumer protection has become extremely important, particularly in the South African context. The more vulnerable consumers, the more protection is required. The Act acknow-ledges the reality of many South African consumers: high levels of poverty, illite-racy and other forms of social and economic inequality; living in remote or low-density population areas; being minors, seniors or other similarly vulnerable consumers; having a limited ability to read and comprehend advertisements, agreements, instructions, warnings, etc. as a result of low literacy levels, vision impairment or language impediments.
The application of the CPA extends to both goods and services delivered or rendered "in the ordinary course of business". It applies to transactions (occurring within the Republic) between suppliers and consumers with regard to -
- goods and services unless specifically exempted
- the promotion (and marketing) of goods and services
- goods and services itself
- goods which form the subject of an exempted transaction.
Goods and services are to take on an entirely new meaning under the CPA. Almost all types of businesses will be affected. Here is a limited list of the businesses that will be severely impacted by the Act: retailers of goods (i.e. consumables, furniture, clothing, literature, music etc); casinos; motor manufacturers; motor mechanical shops, second-hand car dealers; marketing and advertising agencies; the print media industry; airlines; estate agencies; the tourism and hospitality industry; franchisors and franchisees; service providers in, for example, the healthcare, beauty and haircare, education, banking and financial services, transportation, funeral and telecommunications sectors, as well as providers of professional services (i.e. medical practitioners, attorneys and accountants) will soon have to undertake a complete review of their standard agreements, day-to-day operational processes and marketing strategies to ensure compliance with the Act.
As indicated earlier, from TOMORROW, consumers will have extremely strong and enforceable rights against suppliers of goods and services and suppliers should be well acquainted with their rights and responsibilities.
Next week, we will discuss some of the main rights of the consumer.
(Contributed by Braam Botha, lecturer, NMMU Business School)
Read another article about the Consumer Protection Act here.
