8. Consumer Protection Act, 2008 (CPA) (Act 68 of 28 April 2008)

Question 1

8.1 Purpose of the CPA

Answer 1

• Promotes responsible consumer behaviour.
• Strengthens a culture of consumer rights and responsibilities.
• Allows for consumers and businesses to resolve disputes fairly or effectively.
• Empowers consumers to take legal action if their rights are not upheld.

Question 2

8.2 Impact of the CPA on businesses

ADVANTAGES

Answer 2

• Businesses may be safeguarded from dishonest competitors.
• Businesses may gain consumer loyalty if they comply with CPA.
• Prevents larger business from undermining smaller ones.
• Businesses may be protected if they are regarded as consumers.

Question 3

8.2.1 Impact of the CPA on businesses

DISADVANTAGES

Answer 3

• Confidential business information may become available to competitors.
• Businesses must disclose more information about their products OR services.
• Penalties for non-compliance may be very high.
• Businesses may feel unnecessarily burdened by legal process.

Question 4

8.3 Actions regarded as non-compliance by the CPA

Answer 4

• Treating consumers differently based on gender, age or race.
• Charging unfair prices for the same goods and services.
• Varying the quality of goods when selling in different areas.
• Denying customers proper information about the product or services.

Question 5

8.4 Penalties or consequences for non-compliance to the CPA

Answer 5

• Businesses may face fines or imprisonment for a period not exceeding 10 years.
• Businesses may be forced to compensate consumers in line with the extent to which rights have been violated.
• A contract be rendered void, or a fine/ term of direct imprisonment may be imposed.
• Government agencies may conduct audits or even enact fines or even dissolves your business entirely.

Question 6

8.5 Ways in which businesses can comply with the CPA

Answer 6

• Disclose prices of all products on sale.
• All agreements must provide a five-day cooling off period.
• Implement measures that will facilitate complaints e.g., suggestions boxes.
• Ensure goods or services offered are standardised or of the same quality.
• Provide adequate training to all staff on the CPA.

Question 7

8.6.1 Consumer rights in terms of the CPA

Consumer rights in terms of the CPA

Answer 7

* Right to choose

Consumers have the right to:
* Choose suppliers and goods.
* Shop around for the best prices.
* Return goods that are unsafe/defective for a full refund.

Question 8

8.6.2 Right to privacy and confidentiality

Consumer rights in terms of the CPA

Answer 8

Consumers have the right to stop or restrict unwanted direct marketing. They can object to unwanted promotional e-mails and telesales and they have the right to lodge complaints about the sharing of their personal
details.

Question 9

8.6.3 Right to fair and honest dealings

Consumer rights in terms of the CPA

Answer 9

• Suppliers may not use physical force to customers to buy products.
• Suppliers may not give misleading or false information.
• Businesses may not promote pyramid schemes and chain-letter schemes.

Question 10

8.6.4 Right to information about products and agreements or right to disclosure and information

Answer 10

• Contracts should be in plain language and easy to understand.
• Businesses should display prices which are fully disclosing all costs.
• Businesses should label products and trade descriptions correctly.

Question 11

8.6.5 Right to fair/responsible marketing or promotion

Answer 11

• Businesses should not mislead consumers on pricing, benefits or uses of goods.
• Consumers may cancel purchases made through direct marketing within five working days.
• All information related to the country of origin, expiry dates or ingredients of the products should be disclosed.

Question 12

8.6.6 Right to fair value or good quality and safety

Answer 12

• Consumers have the right to demand quality service or goods.
• They have the right to return faulty items if the fault occurs within six months after purchasing the item.
• Consumers may receive a written warranty.

Question 13

8.6.7 Right to accountability from suppliers

Answer 13

• Consumers have the right to be protected in lay-bye agreements.
• Businesses should honour credit vouchers and prepaid services.

Question 14

8.6.8 Right to fair, just/reasonable terms and conditions

Answer 14

• Businesses should provide consumers with written notices of clauses that may limit consumer rights.
• Businesses may not market/sell goods at unfair prices.

Question 15

8.6.9 Right to equality in the consumer marketplace

Answer 15

• Businesses should not limit access to goods and services.
• Businesses may not vary the quality of their goods to different consumers.
• Businesses may not charge different prices for the same goods or services.