SOUTH AFRICANS have lived in something close to the consumer dark ages for many years.
From suffering under the weight of dubious and purposefully unclear hire purchase arrangements to paying the price for a service provider’s inability to cancel a contract (as requested), we have a history of struggling to take action when we really should.
The Act will have many implications for businesses, who will be called to account, legally speaking, in instances that traditionally generated only a resigned shrug of apology. And consumers will be significantly more empowered.
From now on, we can stand up for ourselves, knowing that the law is on our side. The bottom line is this act has real teeth. Companies that fail to comply with its terms can face penalties as severe as an administrative fine of up to 10% of annual turnover - or a fine of R1 million.
Of course, to be an active consumer you need to understand your rights, and the responsibilities of service providers, as defined by the act. Here are some of the highlights:
) Privacy – at last: Most South Africans are tired of unsolicited sales calls, junk emails and SMS’s. The CPA takes very necessary privacy action, allowing you to demand that any company that contacts you without you asking them to do so removes you from its database. Even better, when you’re filling out a contract or membership form, online or offline, you must be given the choice to specify that you do not want to be bothered by advertising.
) Cooling off: Ever regret that time share purchase you agreed to just to get rid of the sales guy? The CPA says companies must now offer you a cooling off period to cancel an advance reservation, booking or order. This measure gives consumers the ability to recover from the heat of sales moment and confirm their decision after consideration.
The act also makes it illegal for companies to automatically renew contracts as they expire. From now on, they’ll need permission in writing from you before they can renew. And, even better, suppliers and service providers are now obliged to communicate price increases. (source: Legal & Tax)
