Consumer Protection Act – 2011
Background
• developed by the department of trade and industry
• supports consumer rights and responsibilities
• develop a fair market place for consumers
• reduce difficulties faced by consumers
• protect consumers from unfair business practices
• creating responsible consumers
• empowering consumers
Consumer Rights
• the consumer protection act gives nine rights to consumers:
o right to equality in the consumer market and protection against discriminatory marketing
o right to privacy
o right to choose
o right to disclosure of information consumer rights
o right to fair and responsible marketing.
o right to fair and honest dealing with consumer.
o right to fair, just and reasonable terms and conditions.
o right to fair value, good quality and safety.
o right to accountability from suppliers. key points of CPA
Key Points of CPA
• marketing standards- no more unwanted direct mail. marketing must be factual and accurate
• cooling off period- 5 days
• fixed term contracts- responsibility is on consumer. will carry on from month to month basis
• overselling and overbooking
• implied warranty of quality- consumer has 6 months to return defective goods
• prepaid vouchers- 3 years to redeem. is the property of company until redeemed channels for
consumer complaints
Channels for Consumer Complaints
• department of trade and industry are responsible for creating a competitive, enabling economic
environment through the implementation of fair, transparent, effective and predictable regulations.
• consumer corporate and regulations division offers information and advice to consumers on their
rights and how and where to complain provincial consumer affairs offices
Provincial Consumer Affairs Offices
• staff advise on consumer issues.
• provide information, protection and education.
• elects a consumer protector, provincial consumer court, national consumer commission
National Consumer Commission
• established to enforce the CPA
• ensure consumers are well educated and well informed
• promote a fair market place
• establish norms and standards
• stop unfair marketing
• promote responsible consumers
• give a legal framework national consumer forum NCF
,National Consumer Forum – NCF
• non-profit and autonomous
• raise awareness of consumer rights
• highlight channels they can follow if they face with unfair practices
• give a voice to the public
• co-ordinate campaigns South African National Consumer Union Sancu
South African National Consumer Union – SANCU
• voluntary independent body
• build up consumer awareness through education, protection, and information
Where to Complain
Public sector offices
• consumer affairs committee: investigates harmful business practices
• public protector: unfair treatment of citizens by government offices
• advertising standards authority of South Africa: oversees advertising
• South African Bureau of standards: benchmark for quality; canned foods, electrical
appliances, building material, safety aspects of cars
• consumer goods and services ombud: goods and services complaints
Corporate organisations and private sector
• Furniture Traders Association
• National Home Builders Registration Council: building defects
• estate agents affairs board
• financial services board: short and long term insurance
• national credit regulator: complaints on credit providers
Professional bodies
• Engineering Council of South Africa: complaints regarding engineering services
Consumer journalism
• using mass media for complaints and information
• sections dedicated to consumer issues
▪ electronic journalism
▪ tv
▪ radio
▪ newspapers
▪ magazines
▪ specialist consumer magazines e.g. consumer fair
Legal action
• small claims court – R15 000
• magistrate – emotional issues
• high court – R100 000
• legal aid board: means tested in order to qualify
• legal aid bureau: PVT organisation also means tested
• legal resource centre: NGO that provides legal advice to the poor
• university legal clinics: university-based where consumers can take issues
, Financial and Contractual aspects of importance to
Consumers
Contracts:
• Legal agreement between two or more parties
• Discusses all terms and conditions if an offer is made
• Rights and responsibilities of all parties are included
Requirements for Valid Contracts:
• Requirements must be met for a contract to be legal and binding
• All parties must consent, must be an offer and an acceptance of offer
• Capacity to contract – all parties must be 18+ and of a sound mind
• Agreement cannot be illegal
• Must comply with necessary legal formalities – must be correctly signed by all parties and
witnesses
• Agreement and consent must be voluntary, o party may be forced into contract
• Must be possible to perform the contractual obligations
Breach of Contract:
• When one party fails to perform the obligations specified in contract, that party breaches
contract
Consequences:
• Court can declare party guilty for failure to keep to the agreement and a fine/jail sentence
may be imposed
• Court can sue guilty party for damages
• An interdict can be obtained to prevent the guilty party from continuing with their work
• The contract can be cancelled or declared void
Types of Agreements:
Oral Agreements:
• Take place through conversation
• Credibility is difficult to determine
• One person’s word versus the other
Silent Agreements:
• An exchange transaction takes place without a dispute/ questioning
Written Agreement (contract):
• Legal agreement on paper usually signed in presence of witnesses
Types of Contracts:
Employment Contract:
• Agreement between employer and employee
• Terms are binding by law
• Protects both employer and employee in terms of obligations and service conditions
• Signed by employee, employer and witnesses
Background
• developed by the department of trade and industry
• supports consumer rights and responsibilities
• develop a fair market place for consumers
• reduce difficulties faced by consumers
• protect consumers from unfair business practices
• creating responsible consumers
• empowering consumers
Consumer Rights
• the consumer protection act gives nine rights to consumers:
o right to equality in the consumer market and protection against discriminatory marketing
o right to privacy
o right to choose
o right to disclosure of information consumer rights
o right to fair and responsible marketing.
o right to fair and honest dealing with consumer.
o right to fair, just and reasonable terms and conditions.
o right to fair value, good quality and safety.
o right to accountability from suppliers. key points of CPA
Key Points of CPA
• marketing standards- no more unwanted direct mail. marketing must be factual and accurate
• cooling off period- 5 days
• fixed term contracts- responsibility is on consumer. will carry on from month to month basis
• overselling and overbooking
• implied warranty of quality- consumer has 6 months to return defective goods
• prepaid vouchers- 3 years to redeem. is the property of company until redeemed channels for
consumer complaints
Channels for Consumer Complaints
• department of trade and industry are responsible for creating a competitive, enabling economic
environment through the implementation of fair, transparent, effective and predictable regulations.
• consumer corporate and regulations division offers information and advice to consumers on their
rights and how and where to complain provincial consumer affairs offices
Provincial Consumer Affairs Offices
• staff advise on consumer issues.
• provide information, protection and education.
• elects a consumer protector, provincial consumer court, national consumer commission
National Consumer Commission
• established to enforce the CPA
• ensure consumers are well educated and well informed
• promote a fair market place
• establish norms and standards
• stop unfair marketing
• promote responsible consumers
• give a legal framework national consumer forum NCF
,National Consumer Forum – NCF
• non-profit and autonomous
• raise awareness of consumer rights
• highlight channels they can follow if they face with unfair practices
• give a voice to the public
• co-ordinate campaigns South African National Consumer Union Sancu
South African National Consumer Union – SANCU
• voluntary independent body
• build up consumer awareness through education, protection, and information
Where to Complain
Public sector offices
• consumer affairs committee: investigates harmful business practices
• public protector: unfair treatment of citizens by government offices
• advertising standards authority of South Africa: oversees advertising
• South African Bureau of standards: benchmark for quality; canned foods, electrical
appliances, building material, safety aspects of cars
• consumer goods and services ombud: goods and services complaints
Corporate organisations and private sector
• Furniture Traders Association
• National Home Builders Registration Council: building defects
• estate agents affairs board
• financial services board: short and long term insurance
• national credit regulator: complaints on credit providers
Professional bodies
• Engineering Council of South Africa: complaints regarding engineering services
Consumer journalism
• using mass media for complaints and information
• sections dedicated to consumer issues
▪ electronic journalism
▪ tv
▪ radio
▪ newspapers
▪ magazines
▪ specialist consumer magazines e.g. consumer fair
Legal action
• small claims court – R15 000
• magistrate – emotional issues
• high court – R100 000
• legal aid board: means tested in order to qualify
• legal aid bureau: PVT organisation also means tested
• legal resource centre: NGO that provides legal advice to the poor
• university legal clinics: university-based where consumers can take issues
, Financial and Contractual aspects of importance to
Consumers
Contracts:
• Legal agreement between two or more parties
• Discusses all terms and conditions if an offer is made
• Rights and responsibilities of all parties are included
Requirements for Valid Contracts:
• Requirements must be met for a contract to be legal and binding
• All parties must consent, must be an offer and an acceptance of offer
• Capacity to contract – all parties must be 18+ and of a sound mind
• Agreement cannot be illegal
• Must comply with necessary legal formalities – must be correctly signed by all parties and
witnesses
• Agreement and consent must be voluntary, o party may be forced into contract
• Must be possible to perform the contractual obligations
Breach of Contract:
• When one party fails to perform the obligations specified in contract, that party breaches
contract
Consequences:
• Court can declare party guilty for failure to keep to the agreement and a fine/jail sentence
may be imposed
• Court can sue guilty party for damages
• An interdict can be obtained to prevent the guilty party from continuing with their work
• The contract can be cancelled or declared void
Types of Agreements:
Oral Agreements:
• Take place through conversation
• Credibility is difficult to determine
• One person’s word versus the other
Silent Agreements:
• An exchange transaction takes place without a dispute/ questioning
Written Agreement (contract):
• Legal agreement on paper usually signed in presence of witnesses
Types of Contracts:
Employment Contract:
• Agreement between employer and employee
• Terms are binding by law
• Protects both employer and employee in terms of obligations and service conditions
• Signed by employee, employer and witnesses
