Consumer Protection Act enters into force
 • the definitions used in the Act; • the purpose, policy and application of the Act; and • the establishment and functions of the National Consumer Commission. Persons involved in franchising should also particularly take note of Section 7. Franchise agreements must now comply with the following requirements: • the agreement must be in writing and signed by or on behalf of the franchisee; • it must include any prescribed information or address any prescribed categories of information; • it must comply with the CPA’s plain language requirements. In terms of Section 7, the relevant Government Minister may prescribe specific information that must be set out in franchise agreements generally or within specific categories or industries. It is expected that the prescribed information will be contained in regulations promulgated under the CPA. However, to date no regulations have been issued. Although the substantive provisions of the CPA dealing with issues such as transactions between consumers and suppliers are not yet in force, the time has come for businesses to start acquainting themselves with the provisions of the CPA. This is particularly in light of the fact that the remainder of the CPA is expected to take effect on 24 October 2010 (the general effective date). The CPA does not apply to consumer transactions or the marketing or supply of goods or services before that date. However, there are certain provisions of the CPA that will apply to pre-existing agreements between suppliers and consumers. This would only be the case if the pre-existing agreement would have been subject to the CPA (if the CPA had been in effect when the agreement was concluded) and the agreement is for a fixed term which will only expire on or after the second anniversary of the general effective date. The relevant provisions include those relating to the consumer’s right to choose or examine goods, provisions regulating the delivery of goods or the supply of services and the return thereof as well as unsolicited goods or services. There are also provisions relating to grey or re-conditioned goods and form requirements in respect of invoices. The CPA will affect the way in which businesses operate in a significant manner and will also create risks for them, particularly in light of the CPA’s provisions relating to product liability. At the same time, it will afford protection to consumers who might, up to now, have been in a vulnerable position. Danie Strachan Senior Associate danie-s@adamsadams.co.za |
||
| 9/03/2012 | ||
|
The firm practises directly in several Southern African countries and through long-established associates in others.
