Consumer Protection Bill goes before Parliament

The Bill was debated and passed late last month by the National Assembly, but with certain amendments made.

It is now up to the Committee on Economic and Foreign Affairs to approve the amendments, which will thereafter be considered by the National Council of Provinces. The Bill will then be signed into law by the President.

The Bill seeks to regulate the commercial relationship between a supplier and a consumer to ensure fair and competitive markets.

Proposed rights

Director of Consumer, Competition Law and Policy at the Department of Trade and Industry, Nomfundo Maseti said the Bill would give consumers the right to cancel fixed term contracts and the right to receive documentation that is written in plain and understandable language.

Other amendments which benefit the consumer relate to the prohibition of unfair contract terms, enhancing consumer choice by requiring disclosure and information as regards prices, the right to demand quality service and good quality products, guarantees and warranties.

In a statement, Maseti acknowledged the Bill's incorporation of fair and responsible advertising and marketing which would be aimed at protecting consumers from fraudulent or deceptive practices.

The Bill also gives consumers the right to restrict unsolicited direct marketing and to demand the solicitor to cease from initiating any further communication. This is often the case in telemarketing.

Accountability

The director added that the Bill makes provision for a system of product liability and improved redress.

“Producers, distributors or suppliers, will be liable for any damages in the form of death, injury, loss, or damage to property and economic loss, to the consumer or third party.

“This Bill decriminalises certain conduct and subjects it to administrative sanctions, while also ensuring that serious misconduct is dealt with criminally, subject to normal court procedures”, Maseti explains.

Promoting consumer activism

The Bill promotes consumer activism by proposing a partnership between government and civil society.

According to the Bill, such a partnership recognises the need to build the capacity of the consumer non-profit sector and suitably equip it to provide face-to-face services such as consumer advice, consumer representation and mediation.

The Bill replaces, in a new and simplified manner, existing provisions from five acts, including the Consumer Affairs (Unfair Business Practices) Act of 1988, Trade Practices Act of 1976, Sales and Service Matters Act of 1964, Price Control Act of 1964, and Merchandise Marks Act of 1941 (specifically Sections 2-13, and 16-17).

Article published courtesy of BuaNews