Impact of Consumer Protection Act spelt out for freight industry

No longer will a company be able to hide behind indemnity forms and the waivering of rights, as the South African consumer gains more power than ever before with the implementation of the Consumer Protection Act next year. Set to come into force in October 2010, the muchanticipated Act places consumers in a very strong position. According to corporate legal facilitator Louis Nel, an indemnity form will no longer act as a method of protection. “Everyone in the supply chain will now be held liable. There will no longer be waivering of rights and companies are going to have to take responsibility for goods and services.” Nel said while much review would still have to take place, it was important that companies realised what impact the Act could have on business in the future. One such area he said was that of unsolicited goods. “If the consumer feels it is the wrong quantity or quality for example and that the consignment is not what they were expecting, it becomes unsolicited goods meaning that if the supplier does not give notice within ten days of delivery that they are removing the goods, the consumer can keep the goods and not pay for them. The consumer is also under no obligation to tell the supplier that they have been given the wrong goods.” He said this also applied to samples. “The delivered goods must match the sample description 100% or they are seen as unsolicited goods.” Nel said the new Act would also affect the wording of contracts that now had to be in clear, plain language that was understandable. “Look at all your existing documents and make sure there is no convoluted speech, that wording is clear and understandable. Also all your signage, advertising and marketing must comply with the new legislation. All transactions will have to be recorded in future.” According to attorney William Fullard, the Consumer Protection Act will not just protect the man on the street but also companies from companies. “Thresholds will be provided at a later stage that will be used to determine at which point a company is no longer considered a consumer.”