Since 2006 we have been actively warning businesses operating in South Africa that the trading conditions they face are set to change dramatically. This change relates to the extent that businesses are dealing with consumers and to the extent which the Consumer Protection Bill is applicable to this relationship. This legislation is equally applicable to foreign exporters servicing the SA market.

Like the Companies Bill, the Consumer Protection Bill was approved by the National Assembly on 26 September 2008 and is expected to come into law in 2009. The Consumer Protection Bill was initially introduced hot on the heels of the National Credit Act. Essentially the Consumer Protection Bill is similar to the National Credit Act in that the Consumer Protection Bill aims to introduce more rights for the consumer and to safeguard these rights. As such the National Consumer Commission (similar to the National Credit Regulator) will be introduced that will investigate complaints from consumers and illegal practices by businesses.

The major difference between the National Credit Act and the Consumer Protection Bill is that where the National Credit Act has a very limited scope of application (only credit transactions), the Consumer Protection Bill will be applicable to every interaction business may have with consumers. The following are included as some examples of these interactions:

• Restrictions on unwanted direct marketing
• Protection of personal information
• Options to escape liability in terms of fixed term contracts
• Cooling-off periods in certain instances, like returning goods purchased after a couple of days
• Prescriptions for product labelling and trade descriptions
• Detailed rules for marketing

Businesses are cautioned to address the Consumer Protection Bill in order to avoid the consequences which the unprepared businesses faced when the National Credit Act came into law.

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For further information on the Consumer Protection Bill, kindly contact Rian Geldenhuys.
© Trade Law Chambers 2008

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