05 consumer protection act01

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Consumer Protection Act Power Point Presentation

Consumer Protection Act Power Point Presentation

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  • 1. South Africa
    Consumer Protection Act
  • 2. Background
  • 3. Scope of the Act
  • 4. Excluded transactions
  • 5. Meaning of goods
  • 6. Meaning of service
    Accommodation e.g. restaurant or hotel
    Entertainment e.g. sale of tickets
    Access to any electronic communications infrastructures e.g. cell phones, 3G
    Access to event, premises, activity or facility
    Right of occupancy in land or other immovable property
    Education, information, advice or consultation (excluding FAIS)
  • 7. Right to equal access to consumer market
    Sales of alcohol to under-aged minors
    Discounted prices for children, persons over a certain age
    Separate use of facilities for different genders
    Access to goods or services
    Different quality or pricing
  • 8. Right to privacy
    Minister to:
    Consumer’s right to:
    Accept, refuse or block any approach for the purposes of direct marketing
    Formal demands to discontinue marketing approach
    Pre-emptively blocking of direct marketing
    Establish an “Exclusion Register”
    Prescribe certain days, dates and times during which it is prohibited to contact consumers
  • 9. Consumer’s right to choose
    No bundled goods or services
    Unless bundling results in economic benefit
    Right to cancel a fixed term agreement upon expiry without penalty or charge
    Month to month automatic renewal
    20 Business days cancellation notice
    Fixed term contracts
    Provide consumer with an estimate. Supplier not permitted to charge for drawing up cost estimate
    Consumer to pre-authorise or refuse additional repairs
    Suppliers not permitted to charge for inspections required in compiling cost estimates unless with prior agreement
    Repairs, maintenance or replacement services
  • 10. Consumer’s right to choose
    Cooling off period of
    5 business days
    No need to provide reasons for cancellations
    No penalties
    Suppliers to return payments received within 15 business days of receiving cancellation notice
  • 11. Consumer’s right to choose
  • 12. Right to disclosure and information
    Notice or document
    Content, significance and importance of notice or document
    Terms and conditions to make informed choices
    Person with average literacy skills and minimal experience must understand
    Compulsory to display prices for goods and services
    Specify duration of promotions, otherwise customers may purchase goods at specified prices
    If two prices are displayed, the lowest has to be charged
    Trade descriptions must not be misleading or tampered with
    Disclose fact if:
    • Reconditioned
    • 13. Grey market goods
    Disclosure requirements
  • 14. Right to fair and responsible marketing
    Prohibition against marketing that is misleading, fraudulent or deceptive
    Following are prohibited
    Bait marketing
    Negative options: Client under no obligation to pay
    Referral selling
    Offering of prizes with intention of not providing them
    Informing consumers that they have won a prize when no competition has been conducted
    Making prize subject to payment of consideration
    Consumers to be:
    • Provided with identity of agents
    • 15. Informed about right to rescind the agreement during cooling off period
  • Right to honest and fair dealing
    Unconscionable conduct, force, coercion, undue influence, pressure or harassment, unfair tactics
    Making false, misleading or deceptive representations
    Overselling and overbooking:
    Refund in full with interest
    Claim contractual and consequential damages, including economic losses
    Right to assume that the supplier has legal right to goods
    The supplier is liable to third party if third party has legal right over property
    Does not apply to used goods or immovable property
  • 16. Right to fair, just and reasonable terms
    Provisions that seek to limit suppliers liability must be brought to the attention of the consumer
    Right to fair value, good quality and safety
    Safeguard the safety of consumers
    Establish regime of product liability
    Rights of consumers to receive goods that are:
    • Of good quality
    • 17. Free from defects
    • 18. Reasonably suitable for the intended purpose
    Goods to be in working order, free of defects, useable and durable for a reasonable period of time
  • 19. Right to fair, just and reasonable terms
    To issue alerts of any activity that is subject to hazard
    Provide notice or instructions of safe handling, how to inhibit any risk, remedy or mitigate the effects
    Provide for safe disposal of goods
    Accept the return of waste goods
    Liable for harm caused as consequence of product defect or failure
    Joint and several liability: producer, importer, distributor, retailer
    Obligation of suppliers
    Implied warranty on quality:
    Six months on repair, replace or refund
    Further three months replace or refund on repairs
  • 20. Supplier’s accountability to consumers
    Supplier obliged to honour them
    Minimum period is three years
    Treated as pre-paid income until redeemed
    Pre-paid certificates, credits and vouchers
  • 21. Registration of business names