Understand how consumer protection will impact on business

The Consumer Protection Bill was tabled in the National Council of Provinces in May 2008 and details in depth the rights of consumers and responsibilities of suppliers of goods and services. If adopted it will have a major impact on the way businesses operate in South Africa.

Christine Malan, the group compliance officer at the Foschini Group, says consumers stand to benefit from this new legislation as they will no longer have to battle with many aspects of the common law regarding liability for defective goods, contract terms and the concept of "voetstoots".

In addition, consumers will be able to opt-out of direct marketing campaigns and have rights enshrined in law - for example the right to return goods, the right to quality goods and service, and the right to equality in the marketplace.

Get ready for the consumer

Malan has been part of an expert task team dealing with the Bill and will take part in a public workshop on the Bill that will be hosted by the law faculty at the University of Cape Town on 28 July 2008.

Titled Developments in Consumer Protection Legislation, the workshop will focus on the impact of the Bill on businesses operating in South Africa.

The workshop will enable traders, retailers and suppliers to get a better understating of the legislation. It will also benefit legal people who advise businesses on consumer dealings and interactions, as well as risk managers and compliance officers.

Malan says legislation in the Bill will force businesses to adapt their behaviour. For example, they will have to realign their advertising, consider taking out extra insurance to cover strict product liability, redraft certain contracts and in many respects change how they do business at floor level.

They will have to extend the expiry of gift vouchers, redraft notices in plain and understandable language, and take back goods (and repair them or refund the consumer) based on a very broad "implied warranty of quality".

However businesses should not feel threatened by the legislation, but rather view the new laws positively as they create the chance for businesses to rethink how they do things.

"Many of the provisions in the Bill are common sense good business practices (e.g. taking back faulty goods) and other areas could assist businesses in creating sustainable businesses by having loyal consumers," Malan said.

For more information on the workshop, visit: www.law.uct.ac.za or direct enquiries to Irèna Wasserfall on irena.wasserfall@uct.ac.za