South African Consumer Protection Act - March 2011

“The Consumer Protection Act will fundamentally change the way business is done in South Africa. It requires businesses to transform the way in which they interact with consumers and to ensure that all their dealings with consumers are fair, reasonable and honest. ”

•  You know the scene: your waiter brings you your meal at a restaurant, but it’s only half the size of the advertised picture. 
• Or your toaster dies an unexpected, flaming death on day 101 of your 100-day-guarantee.
• Or a telemarketer calls you up halfway through lunch and you find yourself signing up for an insurance policy between mouthfuls.

Yes, it’s a dangerous world for consumers. But that’s all about to change.

On March 31, the new Consumer Protection Act (CPA) comes into play. 

• It’s all about you in the new act, especially when it comes to returning goods or asking for refunds.  
• Consumers will now have up to six months to return faulty or unsafe goods. 
• You will have a choice between the supplier repairing or replacing these, or refunding you in full.
• If the product fails again within the next three months, the supplier is once again obliged to replace it or refund you.
• But remember, this applies only to the general wear and tear of your appliances, not gross negligence on your part.
• The supplier may charge you a small amount to repackage the product.

 

Deliveries

• Ordering online? Goods will have to be delivered at an agreed date, time and place. If not, you will be free to accept or cancel the agreement – it’s your choice. 
• Companies are also obliged to deliver goods that match the sample or description of the product. You have the right to examine your purchases before accepting them, and reject them if you’re not happy.
• If you didn’t get a chance to examine the product and are unhappy with it, it can be returned at the supplier’s expense.
• As of March 31, companies will not be allowed to charge you an exorbitant R5 or R10 to enter an SMS or MMS competition, but will have to stick to the usual network rates. 

Needing Repairs? 

Sending your laptop in for repairs? Getting that leaky roof fixed?

• As of March 31, companies have to provide you with an estimate for the work – which you must approve – and cannot charge you more than that estimate.
• If more work is required above and beyond the estimate, they first have to get the go-ahead from you.
• Companies also can’t charge you for preparing their quote, unless you’ve agreed to that.

            Privacy

• Gone are the dreaded telemarketer calls and junk mail fliers. At least in theory.  
• According to the new act, salespeople cannot bombard you with calls and leaflets at certain times of the day and certain days of the year. 
• You can also put your name on a blocking registry to one-up the telemarketers before they even begin to dial. How exactly this will be enforced, however, is still anybody’s guess.  
• Impulse buyers, this one’s for you.  
• According to this clause, you will have five business days to change your mind about that mid-life-crisis Harley or the seaside cottage you fell in love with.  
• Notify the company in writing, and they’ll have 15 days to pay you back in full. If goods have already been delivered to you, you’ll have to return them before you get your money back.
• Note that this applies only where you bought in response to direct marketing, which is when things are advertised to you directly, in person, in the mail, or electronically.  
• Ever been billed for that gym or cellphone contract you thought had expired?  
• Thanks to the new act, automatic contract renewals will be no more. Companies will have to contact you – in writing – between 40 and 80 business days before your contract expires. They have to give you the option to continue your contract, change its terms or cancel it.  
• Note that the contract will continue on a month-to-month basis until you make your choice. 
• You will also be able to cancel contracts at any time. No more waiting for the full 24 months to end. If you’re unhappy, give the company 20 days’ notice – in writing – and you’re home free.  
• And while you won’t have to pay the full value of the contract, keep in mind that you still have to pay anything you owe the company up to the date of cancellation.
• The company might also charge you a cancellation fee, possibly no more than 10 percent of the amounts still owed.

 So ensure that you are aware of the impact this consumer act will have on your Network Marketing business. A few points to remember:

• You will have to disclose your company eg. Amway, Herbalife etc
• When you deliver goods, ensure that you deliver on time and as per your discussion with clients
• Make sure of your pricing
• Ensure your company has a return policy. Amway has a 90 day return policy. 
• When confirming a meeting, ensure that the prospect is aware what the discussion is about.

Don't be caught with your pants down. Ensure you are aware of all the aspects of the new Consumer Protection Act that is taking affect 31 March 2011.


Regards
Dirk