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Consumer Protection Act

Legal

The Consumer Protection Act (“the Act”) was signed into law on 29 April 2009. The Act has been phased and constitutes an overarching framework for consumer protection with one of its purposes being preventing exploitation or harm to consumers.

Legal Consumer Protection Act

The Consumer Protection Act (“the Act”) was signed into law on 29 April 2009. The Act has been phased in allowing businesses 18 months to implement procedures to comply with the Act.

The Act constitutes an overarching framework for consumer protection with one of its purposes being preventing exploitation or harm to consumers. The implications for business are significant. South African consumers are now amongst the most protected consumers in the world. Accordingly, non compliance by suppliers can mean hefty fines, serving a jail sentence or both.

There are at least 25 provisions in the Consumer Protection Act which touch on marketing, including provisions which impact direct marketing, price disclosure, promotional competitions, customer loyalty programmes and general standards for marketing of goods and services. The primary method of ensuring a structured approach with the maximum chance of success, is providing the organisation with guidelines on how to navigate the complex legal provisions.  Given the hefty pitfalls and compliance requirements, it is important that organisations are compliant with the Act through the implementation of optimised solutions in each of their business areas which are affected.

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