Improved consumer protection regime for Eastern Cape
The provincial Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) says the new draft legislation, the Eastern Cape Consumer Protection Bill, is now out for comment.
The bill, published on 4 March 2016, will replace the provincial Consumer Affairs (Unfair Business Practices) Act of 1998 and interested parties have until 14 April – 30 days from when the bill first made its appearance - to provide comment and inputs on the proposed 56 clauses.
In principle, the legislation acts on complaints or disputes where a consumer believes an alleged breach of the rights (as set out in in the Consumer Protection Act) has taken place and the business has not resolved the matter despite the consumer's request for resolution.
The reason for the development of new legislation, says the Department, is that the current legislation which established the Office for the Investigation of Unfair Business Practices is close to 10 years old, and not aligned to the national consumer protection legislation says the Department.
Now the proposed legislation, which has been substantially overhauled, addresses the alignment and at the same time, substantially beefs up the role of Office of the Consumer Protector through a landmark milestone, the establishment of a consumer tribunal.
The tribunal is to consist of six members including chairperson and deputy chairperson who should have extensive legal background. Other members need to have consumer advocacy, economics, industry, commerce or law experience.
The new legislation if enacted, also beefs up the improved functioning and powers for the consumer protector which will allow the consumer protector to now issue compliance notices in cases where the conduct of a business is found to be prohibited conduct in terms of the National Consumer Protection Act.
In these cases, if a business fails to comply with the notice, the consumer protector can, amongst others, apply for a hearing with the consumer tribunal which can impose significant administrative fines.
For example, in the case where a person engages in prohibited conduct, penalties could include a fine, imprisonment of up to 10 years or both. Lesser offences will attract a fine, imprisonment of up to 12 months or both.
"But there may be other improvements that consumers may need or want, so it is imperative that they comment on the bill now," says the Department.
The bill also covers, for example, the process for dealing with claims (clause 21), allowing for witnesses who are obliged to testify before the tribunal (clause 34), participation in a consumer tribunal hearing (clause 35) and penalties (clause 48).
Inspectors, which are not yet in place, will also have improved investigative powers which will include the authority to summons, and enter and search if accompanied by a warrant issued by the High Court and magistrate.
The Department says it is ready to implement the Consumer Protection Bill once it has been promulgated.
This includes making the necessary appointments which include support staff, inspectors and investigators.
Currently, the Office of the Consumer Protector is located at the DEDEAT offices in King William's Town with representation at the six district offices – Port Elizabeth, East London, Maluti, Queenstown, Mthatha, and Aliwal North.
In the last financial year, the Office of the Consumer Protector dealt with over 500 complaints ranging from furniture and household appliance defects and repairs, buying motor vehicle parts and repairs, and buying second-hand vehicles.
Other complaints included financial services like credit agreements or problems with cell phones, home improvements/building construction, retail, insurance, lay-byes and debt.
Enquiries:
Tobile Gowa
Spokesperson for the Department and the MEC for Economic Development, Environmental Affairs and Tourism, Sakhumzi Somyo
Mobile 078 184 7153
Email: tobileg@yahoo.com
