Environments [Consumer Protection Act]

Question 1

CPA

Answer 1

protects consumers against exploitation by informing them about their rights and responsibilities

Question 2

Purpose of CPA

Answer 2

• promotes and protects the economic interests of consumers
• ensures that consumers have all the relevant information to make decisions
• protects consumers by providing national standards
• promotes responsible consumer behaviour

Question 3

Rights of suppliers

Answer 3

• when a supplier acts as a consumer, it has all the rights other consumers have
• suppliers can enforce consumer agreements if the agreements are in ordinary, understandable language

Question 4

Positive impact of CPA (suppliers)

Answer 4

• smaller businesses are protected as they are seen as consumers
• businesses may gain consumers loyalty, if they comply with the CPA
• businesses may be safeguarded from dishonest competitors
• prevents larger businesses from undermining smaller ones

Question 5

Negative impact of CPA (suppliers)

Answer 5

• some businesses feel unnecessarily burdened by the required processes
• penalties for non-compliance may be very high

Question 6

Positive impact of CPA (consumers)

Answer 6

• consumers are forced to make responsible and informed decisions
• encourages consumers to complain

Question 7

Negative impact of CPA (consumers)

Answer 7

• consumers may not be aware of the CPA or their consumer rights
• consumers may be unaware of mechanisms in place to lodge disputes

Question 8

Compliance with CPA

Answer 8

• ensure that all goods and services offered are the same quality
• all agreements must allow for a five-day cooling-off-period
• provide thorough training to staff with regard to the CPA

Question 9

non- compliance with CPA

Answer 9

• the business can be asked to pay interest or damaged due to the consumer
• the business can be fined or face a jail sentence