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Consumer Rights

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Table Contents
 Purpose
 Background on Policy Reform
 Objectives
 Consumer Rights
 Role of Provincial Authorities
 Risk Analysis and Management
 National Consumer Commission
 Status of the Implementation of the Act

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Purpose

The Consumer Protection Bill, 1986 seeks to provide for

better protection of the interests of consumers and for the
purpose, to make provision for the establishment of
Consumer councils and other authorities for the
settlement of consumer disputes and for matter
connected therewith.

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 Background on Policy Reform

International Legislative Benchmarking Study

 Reviewed the laws, models and mechanisms of several jurisdictions including
Argentina, Brazil, Chile, India, UK, Finland, Australia, Ghana, Botswana and
Canada. Most jurisdictions have one comprehensive law as it provides
uniformity and certainty due to clear and upfront rules of conduct.
South African National Consumer Survey
 Interviewed consumers (72% black, 12% white,12% colored, 39 % rural and
35% metro) to establish the extent to which they are aware of their rights, the
types of violations they have experienced and their view of what could be
done to improve access to redress.
Review of Consumer Protection Measures in South Africa
 Reviewed 70 Acts that provide for consumer protection in a range of fields
and sectors including safety, insurance, financial services, health, transport,
aviation, environment, business practices etc.

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 Objectives of the Act

• Promote a fair, efficient and transparent market place for consumers and
business;

• Provide a consistent, predictable and effective regulatory framework that fosters

consumer confidence, but also recognizes the developmental imperatives of the
South African economy;

• Provide access to effective consumer redress for economic citizens;

• Promote better customer service in the public and private sector;

• Harmonize consumer protection framework with international best practice.

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 Consumer Rights

 The new Act adopts a rights based approach with an emphasis on the
following consumer rights: (Based on UN Consumer Rights Charter)
 Right to Equality in consumer market – prohibits unfair discrimination
 Right to Privacy – use of consumer information & “Opt Out” Register
 Right to Disclosure and Information – plain and understandable language
 Right to Choice – bundling of goods, cancellation of contracts 20 days Notice
 Right to Fair and Responsible Marketing – bait, referral negative option
 Right to Honest Dealings -fair contract terms, prohibits misleading representation
 Right to Fair Value, Good Quality and Safety – strict liability, recall of products
 Right to be Heard and Obtain Redress – accessible redress mechanisms

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 Role of Provincial Authorities
A provincial consumer protection authority has jurisdiction within its Province

 issue compliance notices in terms of this Act on behalf of the Commission

to any person carrying on business exclusively within that province;
 facilitate the mediation or conciliation of a dispute arising in terms of this
Act between or among persons resident, or carrying on business
exclusively within that province;
 refer a dispute to the provincial consumer court within that province, if
there is one; and
 request the Commission to initiate a complaint in respect of any apparent
prohibited conduct or offence in terms of this Act arising within that
province

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 Risk Analysis and Management
Risks
Approvals not received on time (NT,
DPSA, DPW)
Not ready to establish by October 2010
Technology specifications not meeting
Commission requirements
Communication – inconsistent
messages creating anxiety and
confusion
Solutions
Follow-up through DG and Minister
Seek interventions, follow-up and set-up
meetings and defer launch
System (s) to be tested before
Commission opens door to the public
Communication strategy and alignment
of processes internally
●●●
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 Risk Analysis and Management
Risks
Regulations not completed on time and
certain functions becoming operational
end of April
Benchmarking findings that could
require system or personnel
improvements
Infrastructure – office space
allocations not identified/provided on
time
Procurement procedures taking too
long
Solutions
OCP implementing and handling
Commission work by end of April
Identify, workshop as part of change
management and implement best
practice changes
Procurement and move activities
finalized by end of September 2010 –
sourcing additional resources if
needed
Forward planning and stringent
deadlines without compromising
quality
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 The National Consumer Commission
 We plan to create a knowledge institution that:
 Is world class and comparable to institutions on same level
 Is efficient, effective, innovative and accessible
 Has functioning and accessible operating systems
 Is easily recognisable by NGOs, consumers, other stakeholders and is accessible
 Has verifiable data and working relations with other agencies
 Is able to work smarter and optimize available resources
 Has credible, respectable and strong leadership
 Has excellent relations with provincial structures, traditional and community
structures and other regulatory agencies

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●●●
The National Consumer Commission

Commissioner

Deputy Commissioner
Company Secretary

Executive Executive Executive Executive Executive

Corporate Services Enforcement and Policy, Research Legal Services Education,
Investigations and Analysis Compliance &
Advocacy

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 Status of Implementation of the Act
 The Act stipulates two dates for giving effect to its implementation as
follows:
- Early effective date – one year after signing by the President
which was 24 April 2010 – to allow the establishment of the
Commission and appointment of staff of the Commission and
the Commissioner, development of regulations, application for
recognition of industry code of conduct, exemption of other
national legislation take effect during this period;

General Effective date – all remaining provisions including

implementation of consumer rights should take place 18 months
after signing by the President - 24th of October 2010.

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●●●
 Status of Implementation of the Act
 OCP has been handling the functions as of 24 April 2010 for the early
implementation provisions

 The general implementation date was postponed in terms of Schedule 2 item 3 of

the Act which allows Minister to defer the effective date of any provision by six
additional months - the Act will now be implemented on 1 April 2010.

 Regulations to give effect to the Act are being finalized and will be published for
comment by end of October 2010.

 Processes for establishment of the National Consumer Commission is on track –

process to appoint Deputy Commissioner and the Commissioner have
commenced – section 87 of the Act requires consultation with the Portfolio
Committee and Minister has initiated that process already

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Conclusion
The definition of Consumer right is 'the right to have
information about the quality, potency, quantity, purity, price
and standard of goods or services', as it may be the case,
but the consumer is to be protected against any unfair
practices of trade. It is very essential for the consumers to
know these rights.

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References
 Google.com
 Wikipedia.org
 Studymafia.org
 Slidespanda.com
 Thanks
To
StudyMafia.org