Consumer Protection

The Consumer Protection Bill was introduced on 5 May 2008 to provide norms for consumer protection.

Generally, save for transactions of the State, the Bill, if passed into law, would apply to all transactions that take place within the Republic of South Africa.

The Bill recognises the fundamental rights of consumers to:

1. Equality;

2. Privacy including the right to avoid unwanted approaches either in person or by electronic means to purchase products and services;

3. Avoid a transaction solicited by direct marketing by rescinding the transaction within 5 days of the transaction without reason or penalty;

4. Fair and responsible marketing. In terms of the Bill a supplier of goods or services may not market his goods or services in a manner that is misleading as to properties and price of goods or services. Negative-option marketing which is a situation which arises when a consumer is considered to have concluded a contract with a supplier of a product or a service unless the contract is specifically refused is not permitted.

5. Honest dealing. “Fine” print in contracts is not permitted. In particular where a contract seeks to limit the risk of the supplier or impose an obligation on the consumer to indemnify the supplier against liability, such clauses must be drawn to the attention of the consumer in a manner that will be understood.

6. Fair value, good quality and safety. The Bill provides for all suppliers of goods to warrant that the goods are of good quality, are safe and suitable for purposes that they were intended. If a product fails to satisfy these standards, consumers are entitled, within 6 months of delivery of the product, to return the product to the supplier, without penalty and the supplier is obliged to either repair or replace the defective product or refund the consumer his purchaser price.

In addition to recognising a consumer’s right to always seek redress from our courts, the Bill also makes provision for the creation of a National Consumer Commission to deal with the Act and to encourage both consumers and suppliers to resolve their disputes in a less formal forum.

While at its heart, the Bill proposes significant protections for the consumer and requires that suppliers engage in responsible selling it goes without saying that ultimately it is up to the consumer to engage in responsible buying.