05 consumer protection act01


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05 consumer protection act01

  1. 1. South Africa<br />Consumer Protection Act<br />2011<br />
  2. 2. Background<br />
  3. 3. Scope of the Act<br />
  4. 4. Excluded transactions<br />
  5. 5. Meaning of goods<br />
  6. 6. Meaning of service<br />Accommodation e.g. restaurant or hotel<br />Entertainment e.g. sale of tickets<br />Access to any electronic communications infrastructures e.g. cell phones, 3G<br />Access to event, premises, activity or facility<br />Right of occupancy in land or other immovable property<br />Education, information, advice or consultation (excluding FAIS)<br />
  7. 7. Right to equal access to consumer market<br />Sales of alcohol to under-aged minors<br />Discounted prices for children, persons over a certain age<br />Separate use of facilities for different genders<br />Access to goods or services<br />Different quality or pricing<br />
  8. 8. Right to privacy<br />Minister to:<br />Consumer’s right to:<br />Accept, refuse or block any approach for the purposes of direct marketing<br />Formal demands to discontinue marketing approach<br />Pre-emptively blocking of direct marketing<br />Establish an “Exclusion Register”<br />Prescribe certain days, dates and times during which it is prohibited to contact consumers<br />
  9. 9. Consumer’s right to choose<br />No bundled goods or services<br />Unless bundling results in economic benefit<br />Right to cancel a fixed term agreement upon expiry without penalty or charge<br />Month to month automatic renewal<br />20 Business days cancellation notice<br />Fixed term contracts<br />Provide consumer with an estimate. Supplier not permitted to charge for drawing up cost estimate<br />Consumer to pre-authorise or refuse additional repairs<br />Suppliers not permitted to charge for inspections required in compiling cost estimates unless with prior agreement<br />Repairs, maintenance or replacement services<br />
  10. 10. Consumer’s right to choose<br />Cooling off period of<br />5 business days<br />No need to provide reasons for cancellations<br />No penalties<br />Suppliers to return payments received within 15 business days of receiving cancellation notice<br />
  11. 11. Consumer’s right to choose<br />
  12. 12. Right to disclosure and information<br /> Notice or document<br /> Content, significance and importance of notice or document<br /> Terms and conditions to make informed choices <br />Person with average literacy skills and minimal experience must understand<br />Compulsory to display prices for goods and services<br />Specify duration of promotions, otherwise customers may purchase goods at specified prices<br />If two prices are displayed, the lowest has to be charged<br />Trade descriptions must not be misleading or tampered with<br />Disclose fact if:<br /><ul><li> Reconditioned
  13. 13. Grey market goods</li></ul>Disclosure requirements<br />
  14. 14. Right to fair and responsible marketing<br />Prohibition against marketing that is misleading, fraudulent or deceptive<br />Following are prohibited<br />Bait marketing<br />Negative options: Client under no obligation to pay<br />Referral selling<br />Offering of prizes with intention of not providing them<br />Informing consumers that they have won a prize when no competition has been conducted<br />Making prize subject to payment of consideration<br />Consumers to be:<br /><ul><li> Provided with identity of agents
  15. 15. Informed about right to rescind the agreement during cooling off period</li></li></ul><li>Right to honest and fair dealing<br />Prohibited:<br />Unconscionable conduct, force, coercion, undue influence, pressure or harassment, unfair tactics <br />Making false, misleading or deceptive representations<br />Overselling and overbooking:<br />Refund in full with interest<br />Claim contractual and consequential damages, including economic losses<br />Right to assume that the supplier has legal right to goods<br />The supplier is liable to third party if third party has legal right over property<br />Does not apply to used goods or immovable property<br />
  16. 16. Right to fair, just and reasonable terms<br /> Provisions that seek to limit suppliers liability must be brought to the attention of the consumer<br />Right to fair value, good quality and safety<br />Safeguard the safety of consumers <br />Establish regime of product liability<br />Rights of consumers to receive goods that are:<br /><ul><li>Of good quality
  17. 17. Free from defects
  18. 18. Reasonably suitable for the intended purpose</li></ul>Goods to be in working order, free of defects, useable and durable for a reasonable period of time<br />
  19. 19. Right to fair, just and reasonable terms<br />To issue alerts of any activity that is subject to hazard<br />Provide notice or instructions of safe handling, how to inhibit any risk, remedy or mitigate the effects <br />Provide for safe disposal of goods<br />Accept the return of waste goods<br />Liable for harm caused as consequence of product defect or failure<br />Joint and several liability: producer, importer, distributor, retailer<br />Obligation of suppliers<br />Implied warranty on quality:<br />Six months on repair, replace or refund<br />Further three months replace or refund on repairs<br />
  20. 20. Supplier’s accountability to consumers<br />Supplier obliged to honour them<br />Minimum period is three years<br />Treated as pre-paid income until redeemed<br />Pre-paid certificates, credits and vouchers <br />
  21. 21. Registration of business names<br />