Consumer bill misunderstood

“Rather than ringing alarm bells, the private sector should focus first on understanding the bill and how they can measure up against it,” said Neil Kirby, a director at Werksmans Attorneys yesterday.

“The effects of the bill may not necessarily be as onerous as some might fear,” he said.

Commenting on recent sub missions made to Parliament by various sectors and groupings, Kirby said the bill was not intended to be a cudgel with which to bludgeon business.

Retailers, direct marketers, cellphone operators, motor retailers and the financial services sector recently warned of the danger of over-regulation in the market place if the bill was passed into law.

The Retailers Association warned against a clause contained in the bill.

The clause provides for strict liability for any damage caused by goods, regardless of the fault on the part of the supplier, saying that it would lead to astronomical costs for businesses.

The new bill is intended to harmonise SA's laws with best international norms and promote better customer service in the public and private sector.

A legislative review by the trade and industry department disclosed that almost 50% of consumer legislation predates 1994, going back as far as 1947.

“Businesses fearing the worst should not overlook two things,” Kirby said.

The first was that the bill may not even apply to them, he said. There were provisions at the beginning of the bill that were careful to impose thresholds and exemptions, meaning that some industries and transactions fell outside of the scope of the proposed legislation.

Secondly, Kirby said, the bill did not disregard the measures businesses might be already taking to protect consumer rights. “It doesn't compel business to reinvent the wheel, but asks them to evaluate the sort of wheel they currently have.”

Instead of focusing on the punitive elements businesses could better serve themselves, and consumers, by highlighting the positive steps they are already taking to protecting consumer rights, Kirby said.

Source: Business Day

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