Consumer Protection Bill to go to parliament
September 18, 2008
By Donwald Pressly
Cape Town - The final touches to legislation that hugely expands the concept of consumer rights in South Africa were carried out by the national assembly's trade and industry committee this week.
The Consumer Protection Bill, which is now ready to go to a plenary of the national assembly before being considered by the national council of provinces, will allow consumers to direct complaints about any goods and services to a new consumer commission "without a whole lot of red tape", according to ANC MP Ben Turok. He described the move as a "far-reaching" entrenchment of consumer rights.
He said the existing complaint mechanisms of professions and trades tended to be defensive of providers of services. The bill would mean that if a financial planner gave a consumer the wrong advice, the consumer would have the right of redress, including compensation. "If an engineer designs a faulty retaining wall, the engineer will have to rebuild the wall."
The committee has completed weeks of public hearings and deliberations on the bill, which now makes all providers of services - such as lawyers, brokers, financial service providers, doctors and even engineers - accountable to consumers.
The trade and industry department, represented by Zodwa Ntuli, the deputy director-general of consumer and corporate regulation, has taken a hard line by insisting that strict liability should apply to goods sold off the shelf, even genetically modified foods. Ntuli told committee members that strict liability was "long overdue" in South Africa. If any product did harm, the seller must pay compensation, and that included genetically modified goods.
It emerged during discussions that the bill would affect not only commerce and the interactions of consumers with commercial firms, but also interactions with professional firms such as architects, engineers or doctors. "This bill will prevail over other laws and be an overarching bill," said Turok.
For example, the bill would take precedence over the Financial Advisory and Intermediary Services Act and the National Credit Act.
Turok said that on reading the bill, he realised that all industry codes of conduct would be subject to compatibility with this legislation.
This was confirmed by trade and industry officials. In terms of the bill, the minister of trade and industry may prescribe an industry code on the recommendation of the National Consumer Commission. The minister may also "withdraw all or part of a previously prescribed industry code on the recommendation of the commission".
The bill aims to establish a legal framework for a consumer market that is fair, accessible, efficient, sustainable and responsible. It aims to reduce any disadvantages that low-income people experience in accessing goods or services. It also aims to promote fair business practices and provide for an effective system of redress.
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