Consumer Protection Act postponement likely

Although due on April
24, the whistle has not
sounded for the kickoff
of the Consumer
Protection Act (CPA),
according to Rosalind
Lake, an associate at the
Johannesburg branch of
lawyers, Deneys Reitz.
This is a new act, signed
into law on April 29, 2009,
but with the provisions
of the act only due to be
applied this year.
“The act was due to be
introduced in two parts
this year in order to afford
business reasonable time
to align their trading
practices and systems to
ensure compliance,” Lake
told FTW.
The sections governing
the establishment of
the National Consumer
Commission (NCC)
– an enforcement and
investigative body –were
due to come into operation
on April 24 along with
the regulations to be
promulgated in terms of
the act.
But this failed to
happen, although Lake
suggested it might be due
to appear about now.
There appears to be
a headhunt still taking
place to staff the NCC – a
department of trade and
industry entity. And Lake
hinted that the right sort
of staff would be those
from the Competition
Commission as they have
appropriate regulatory
experience and necessary
economic and legal
training to be able to
implement the act.
The remainder of the
act was due to come into
force on October 24.
But Lake felt that – with
the minister of trade
and industry given the
discretion to defer the
effect of any specific
provision for a further six
months if it is required –
this could be the case.
“I’d say there’s likely
to be a six-month blanket
extension of the act,” she
told FTW.
But that original April
24 could still remain
a significant date, she
added. Sections due to
become applicable on
that date – like product
liability – are very likely
to be enforced, once the
act comes into being, as
the retrospective date of
application.
However, although there
is a delay, Lake felt that
SA business was still very
busy getting its CPA ducks
in a row.
“It’s a bit difficult
when all the information
is not available, but
commerce and industry
are definitely anticipating
the introduction of the
consumer protection
legislation.”
According to the dti,
the primary purpose is
to prevent exploitation or
harm to consumers.
It regulates the way
businesses relate with
consumers and how they
market their products and
services, she added.
It applies to ‘every
transaction occurring
within the Republic’
(subject to certain
exemptions), and also to
the marketing and supply
of goods and services.
The CPA touches on
many aspects of supply
relationships, including
warranties, pricing,
standards of service
and quality, advertising,
labelling, marketing and
others. “Contraventions of the
act will not be treated
lightly,” Lake said, “and
there is provision for
hefty penalties for noncompliance.
“It is essential that firms
continue to consider their
practices and agreements
in light of the changes
that will be brought about
by this act, and make the
necessary adjustments to
ensure compliance.”