Consumer Bill will obligate business to take responsibility

The Consumer Protection Bill passed
by Parliament late last year is set
to change South Africa’s business
landscape forever.
With this bill, set to take effect by late
2010, no company – regardless of the
industry – will be able to contract out
of liability.
Based on legislation for the consumer in
countries such as the United Kingdom and the
United States, the Consumer Protection Bill
will obligate a business to take responsibility
for the service it offers and trading conditions
will have to be adapted to ensure this.
Experts agree the bill will make South
African consumers amongst the safest in
the world.
According to lawyer Peter Cumberlidge,
the Bill makes way for full disclosure by
businesses and all advertising material will
have to be 100% accurate. “Notices, waivers
or terms and conditions of trading will no
longer absolve the business owner from
responsibility.”
According to the Department of Trade and
Industry, the aim of the bill is to ensure a fair
and accessible marketplace to consumers,
and broadly speaking the bill imposes
obligations on any person who supplies
goods and services in the ordinary course
of business.
Defined as a rights-based piece of
legislation, it will also impact on the way
companies speak to their customers.
It is clear that all agreements for
consumers must be in plain language and set
out an itemised breakdown of the consumer’s
financial obligations under the agreement so
that any notice about limiting a company’s
liability or indemnifying a company must be
drawn to the attention of the consumer and
be in plain language.