Does your business comply with the Consumer Protection Act? As a small business owner, you can add value to your business by knowing your customers’ rights and protecting them. Here is an overview of the Consumer Protection Act to help you get started. The Consumer Protection Act (CPA) was launched in April 2011 with much fanfare and excitement, as South African consumers looked forward to embracing a new culture of fair business practices and ending an era of being "sitting ducks" on the receiving end of insufficient legislation to cover their rights. Alas, we’re two years down the line and it seems that many businesses, particularly the small ones, are carrying on with their now illegal habits – secure in the knowledge that the Consumer Commission has had limited success in taking contravening culprits to task. Just the other day I walked into a small retailer with a "no refunds, no exchanges" sign proudly displayed above their till. When questioned as to the validity of this statement, given that the CPA allows customers to get a refund on a defective product for a period of up to six months, I was met with a blank stare and mumble that this was "company policy". Since when did company policy override national legislation? As a small business owner, you can add value to your business by knowing your customers’ rights and protecting them. You might not be caught out if you ignore the implications of the CPA (or you may well be, in which case you’ll be in a very sorry state), but the goodwill you can earn by being sensitive to consumer needs can mean significant returns. While the contents of the Act are extensive and you would do well to read up on them in more depth, here is a brief snapshot of what it entails: Order cancellation Your customers have the right to cancel any pre-booking/reservation/order for goods and services, without being penalised. Cancellation of fixed-term agreements: Provided written notice is given to the supplier at least 20 days prior, consumers can cancel a fixed-term agreement at any time – they are liable for payments up till the date of cancellation and a reasonable cancellation penalty can be charged. Quotes Suppliers must provide an estimate or quote for customers to agree to prior to work being done. If the cost has not been acknowledged and accepted, none can be charged for repairs, maintenance work or other diagnostic work done. Warranty on repaired goods There is a mandatory three-month warranty on service providers who install any new or reconditioned part during repair work; calculated from the date of installation. Right to return goods A consumer may return unsafe or defective goods, including goods that are not of a good quality, for a period of six months from the date of purchase. No penalty can be charged to the consumer. Unsolicited goods or services There is no obligation on the part of a recipient to pay for unrequested goods and services. Transaction cancellation from direct marketing Direct marketing refers to the practice of approaching someone (in person, via phone/fax/email/sms etc) to try to sell them goods or services. A customer who has accepted a transaction has five business days to rescind the transaction without reason or penalty. Written notice must be given to the supplier. Ethical marketing practices Suppliers may not promote their products and services in a deceptive, misleading or fraudulent manner or in a way that violates dignity or is based on unfair discrimination. *This article does not constitute legal advice, neither is it exhaustive. Please consult a professional for more in-depth information.
Posted on: Tue, 23 Jul 2013 21:32:25 +0000
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