Consumer Protection law
Are you complying with the Consumer Protection Act?
The Consumer Protection Act, 2008 (CPA) came into force on 31 March 2011. It has a significant effect on the supply of goods and services.
The CPA contains some controversial provisions. These relate to issues such as the following:
- Product liability: A supplier can be held liability for harm cause by defective or hazardous goods, even though the supplier was not negligent. This will apply to all parties in the supply chain.
- Warranties: The CPA prescribes four standard warranties that cannot be excluded.
- Direct marketing: If a consumer concluded a transaction as a result of direct marketing, the consumer will have a cooling-off period during which the transaction can be cancelled. Direct marketing includes the sending of emails to consumers, telemarketing as well as personal approaches (such as the handing out of flyers).
- Terms and conditions: Consumer agreements may not contain certain unfair, unreasonable or unjust terms and conditions.
Make sure that you comply with the CPA. If not, you may be faced with complaints or investigations by the National Consumer Commission.
For more information contact
Danie Strachan or
Jenny Pienaar.
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Product liability - beware of the CPA
Many franchise systems involve the manufacturing of products or the sale of those products to the public. Sometimes, something goes wrong in the process and the products cause harm to consumers. Both franchisors and franchisees need to consider what the implications will be if that happens. Such harm can lead to significant claims against franchisors or franchisees and steps must be taken to deal with the risks involved. |
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