Everything you need to know about consumer protection

Application of the CPA

The CPA applies to every transaction and promotion or supply of goods occurring within South Africa, however, it is not applicable in certain instances including the following:

• Goods or services supplied or promoted to the government;
• Services that fall under employment contracts;
• Credit agreements as per the National Credit Act, excluding goods and services;
• An industry-wide exemption that can be granted to regulatory authorities; and
• Agreements that give effect to collective bargaining and bargaining agreements.

These are the only exceptions to the consumer protection provided by the CPA.

Consumer rights

There are a number of rights set out in the CPA designed to provide consumer protection..  It is important that all South African consumers are aware of these rights to ensure the proper functioning and implementation of the CPA. Here is a brief summary of these rights:

The right to equality in the consumer market

A large aspect of consumer protection is equality, ensuring that all consumers are treated equally regardless of gender, race, location, or any other factors.  The right to equality set out in the CPA ensures consumer equality by not permitting suppliers to limit or prioritise access to goods or services they supply.  Suppliers are also not permitted to vary the quality or prices of goods or services in a discriminatory way.

The right to privacy

Consumer protection also entails the protection of a consumer's privacy, which is why the right to privacy is set out in the CPA.  This gives consumers the right to protect their privacy and confidentiality with respect to unsolicited or unwanted correspondence, meaning consumers can refuse or opt-out of receiving direct marketing correspondence from suppliers.  Additionally, suppliers are not permitted to continue any unsolicited direct marketing of goods or services once the consumer has opted out. 

The right to choose

Another aspect of consumer protection provided by the CPA is the right to choose.  This gives consumers the right to choose which supplier they use allowing them to shop around for the best goods and services at the best prices.  It stipulates that consumers aren’t obliged to enter additional agreements with suppliers they have used and that suppliers cannot force consumers into agreements with third parties.  The right to choose doesn’t stop there as it also pertains to the following:

• The right to cancel or renew a fixed-term agreement;
• The right to request pre-authorisation for repairs or maintenance services;
• The right to cancel direct marketing contracts within the cooling-off period;
• The right to cancel advance reservations, bookings or orders;
• The right to choose or examine goods;
• The right to return goods and seek redress for unsatisfactory services; and
• The right to not pay for and retain unsolicited goods or services.

The right to information 

To ensure consumer protection information must be easily accessible.  That is why the CPA gives consumers the right to information in plain and easily-understood language.  This includes any contracts or agreements.  This right to information also extends to the following:

• The right to disclosure of prices of goods and services;
• The right to product labelling and trade description;
• The right to disclosure of reconditioned or grey market goods;
• The right to sales record; and
• The right to identification of delivery persons and installers.

The right to fair and responsible marketing

Responsible marketing is another important aspect of consumer protection.  This is why the CPA has stipulations to ensure the consumer's rights to fair and responsible marketing.  These include the following:

• The right to protection against bait marketing;
• The right to protection against negative option marketing;
• The right to protection against direct marketing;
• The right to protection in catalogue marketing;
• The right to protection in terms of trade coupons and similar promotions; and
• The right to protection in customer loyalty programmes.

The right to fair and honest dealing

The CPA provides further consumer protection by establishing rights to fair and honest dealing with suppliers.  It does so by defining the right to protection against several unscrupulous (or unethical) business practices.  These include the following:

• Unconscionable conduct;
• False, misleading or deceptive representation;
• Fraudulent schemes and offers;
• Pyramid and related schemes;
• Consumer’s right to assume supplier is entitled to sell goods;
• Procedures regarding auctions;
• Changes, deferrals and waivers, and substitution of goods; and
• Over-selling and over-booking.

The right to fair, just and reasonable terms and conditions

It is important to consumer protection that all terms and conditions in transactions are fair, just, and reasonable.  This is why the CPA stipulates the following consumer rights:

• The right to protection from unfair, unreasonable, or unjust contract terms;
• The right to receive notice of certain terms and conditions;
• The right to receive free copies of written consumer agreements;
• The right to refuse prohibited transactions, agreements, terms, or conditions; and
• The right to the powers of the court to ensure fair and just conduct, terms and conditions.

The right to fair value, good quality and safety

Ensuring that consumers receive fair value for their money, is an important aspect of consumer protection.  This refers not only to the quality of goods but also to the quality of service provided.  This is why the CPA has stipulations regarding the following:

• Consumer’s rights to demand quality service;
• Consumer’s rights to safe, good quality products;
• Implied warranty of quality;
• Warranty on repaired goods;
• Warning concerning facts and nature of risks;
• Recovery and safe disposal of designated products or components;
• Safety monitoring and recall; and
• Liability for damages caused by goods.

Suppliers' accountability to consumers

Naturally, as suppliers are vital participants in any transaction, with a great deal of consumer trust put into them, there must be accountability for suppliers to ensure consumer protection.  This is why the CPA covers rules and regulations regarding the following:

• Lay-bys;
• Prepaid certificates, credits and vouchers;
• Prepaid services and access to service facilities;
• Supplier to hold and account for consumer’s property;
• Deposits in respect of containers, pallets or similar objects; and
• Return of parts and materials.

These are just brief outlines of the consumer’s rights set out in the CPA.  If you would like more details regarding these rights consult the CPA here.

Want to learn more about consumer protection?

We hope this has helped you better understand consumer protection in South Africa.  If you’d like to learn more about consumer protection and the exciting field of business law, or you are starting your law career as a paralegal, consider this Business law course offered by the Gawie le Roux Institute of Law.  This online course covers three modules dealing with contracts, business organisation, and consumer protection.  This course will give you a better understanding of the interaction between law and business in the modern world.

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