30 April 2009
President Kgalema Motlanthe has signed into law the Consumer Protection
Bill. 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 Act seeks to
create and promote an economic environment that supports and strengthens a
culture of consumer rights and responsibilities, whilst through the measures
adopted therein; it seeks to promote fair, efficient and transparent market
place for consumers and business. The Consumer Protection Act will introduce
general principles of consumer protection and serves as an overarching
governing statement on consumer protection matters in South Africa.
The Acting Deputy Director General in the Department of Trade and Industry,
Ms Nomfundo Maseti, says the primary purpose of the Act is to protect consumers
from exploitation and unfair practices in the marketplace from 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.
âProducers, 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. This Act decriminalises certain conduct and subjects
it to administrative sanctions, while also enables consumers to demand refund
if the goods are of inferior quality.
âConsumers may return the goods to the supplier, without penalty and at the
supplierâs risk and expense, if the goods fail to meet the required standardâ,
added Maseti.
Consumers are now empowered to cancel contracts if not satisfied with the
terms of contract. Further, consumers will have a final 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.
For the first time, the Act promotes consumer activism by providing for
accreditation of consumer groups for lodging complaints on behalf of consumers
and provide for possible financial support for activities such as consumer
advice, education, publications, research and alternative dispute resolution
through mediation or conciliation, noted Maseti.
For implementation purposes, the National Consumer Commission, which is an
enforcement /investigative body on consumer protection issues, will be
established after 12 months from the date of signing of the Bill by the
President. The National Consumer Commission will commence implementation of the
Act after the period of 18 months from the date of signing of the Bill by the
President. 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.
The Act replaces, in a new and simplified manner, 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).
For more information, contact:
Sidwell Medupe
Tel: 012 394 1650
Cell: 073 522 6801
E-mail: MSMedupe@thedti.gov.za
Issued by: Department of Trade and Industry
30 April 2009
