Consumer Bill will obligate business to take responsibility

The Consumer Protection Bill passed by Parliament late last year is set to change South Africa’s business landscape forever. With this bill, set to take effect by late 2010, no company – regardless of the industry – will be able to contract out of liability. Based on legislation for the consumer in countries such as the United Kingdom and the United States, the Consumer Protection Bill will obligate a business to take responsibility for the service it offers and trading conditions will have to be adapted to ensure this. Experts agree the bill will make South African consumers amongst the safest in the world. According to lawyer Peter Cumberlidge, the Bill makes way for full disclosure by businesses and all advertising material will have to be 100% accurate. “Notices, waivers or terms and conditions of trading will no longer absolve the business owner from responsibility.” According to the Department of Trade and Industry, the aim of the bill is to ensure a fair and accessible marketplace to consumers, and broadly speaking the bill imposes obligations on any person who supplies goods and services in the ordinary course of business. Defined as a rights-based piece of legislation, it will also impact on the way companies speak to their customers. It is clear that all agreements for consumers must be in plain language and set out an itemised breakdown of the consumer’s financial obligations under the agreement so that any notice about limiting a company’s liability or indemnifying a company must be drawn to the attention of the consumer and be in plain language.