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    Consumer Protection ACT

    Uploaded by

    thandolwethuu.zondii

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Consumer Protection ACT

    Uploaded by

    thandolwethuu.zondii
    7 views5 pages

    Copyright

    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views5 pages

    Consumer Protection ACT

    Uploaded by

    thandolwethuu.zondii

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 5

    Consumer Protection ACT:

    This act protects consumers against exploitation by informing them about their rights and
    responsibilities.

    Purpose:
    -Promotes responsible consumer behavior.
    -The CPA promotes and protects consumer’s economic interest.
    -Ensures that consumers have all the relevant information to make informed decisions.
    -Protects consumers by providing national standards.

    -Establishes a national consumer commission->NCC: Promotes compliance, a fair


    marketplace and prohibits certain unfair business practices.
    -Encourages consumers to take legal action if their rights have been violated.

    The impact:
    Positive:
    -Business may be safeguarded from dishonest competitors.
    -Business may be protected if they are regarded as the consumer.
    -Prevents larger business from undermining smaller ones.
    -Business can gain loyal consumers if they comply with the CPA.
    -Enables businesses to resolve disputes fairly along side with the NCC/ consumer court or
    Industrial Ombudsmen.

    Negative:

    -Faulty items must be Replace/repaired or refunded if the fault carries on within 6 months
    after the purchase.
    -Business must disclose more information about their product, processes, and services. This
    confidential information becomes available to competitors.
    -Consumers can take advantage of businesses and return goods when it is not necessary to
    do so.
    -Staff need to become trained and legal consultants/experts will be needed and this will
    increase costs.

    Discriminatory actions:
    -Denying customers proper and valid information on products and services.
    -Treating customers differently based on demographic backgrounds.
    -Charging unfair prices for same goods/services.

    Penalties for non-compliance:


    -Business can face 10 years of imprisonment.

    -Business can be issued with fines or get dissolved entirely.

    -Business will have to compensate the customers accordingly to how their rights have been
    violated.

    Ways to comply:
    -Disclose all information and prices of products even if it is on sale.

    -Comply with the requirements regarding promotional competitions.


    -Ensure that all goods and services offered are the same quality.
    -Implement facilities for the handling of complaints.
    Consumers Right in the CPA:
    1. Right to choose
    2. Right to privacy
    3. Right to fair and honest dealings
    4. Right to accountability
    5. Right to information about products and agreements
    6. Right to fair and responsible marketing
    7. Right to equality
    8. Right to return goods
    9. Right to complain
    10. Right to quality goods and safety

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