Consumer Protection Act introduces a legal framework
Consumer Protection Act introduces a legal framework
The Consumer Protection Act introduces a single, comprehensive legal framework for consumer protection which outlines the entitlements of consumers and the responsibilities of suppliers.
The Act is far-reaching, ambitious and the first legislation of it’s kind in South Africa. While the Act aims to protect all consumers, the focus in many instances is on “vulnerable” consumers, being the previously disadvantaged, uneducated, illiterate, among others.
Of special interest to marketers will be Section 9, Marketing and interaction with consumers, which states:
The definition of “advertisement” is wider in the CPA than the definition which is contained in the Companies Bill. The CPA attempts to convert best marketing practices into law, which will result in retailers or marketers having to conduct a complete review of their marketing strategies and processes, especially with regard to strategies such as bait marketing, negative option marketing, direct marketing at home, catalogue marketing, trade coupons, promotions, customer loyalty programmes and referral selling.
The Act provides that the Minister, through regulations, must prescribe a time at which consumers may be contacted for direct marketing purposes. Regulations should be in line with business and marketing practices.