The formation of the National Consumer Commission (NCC), which is aimed at enforcing the Consumer Protection Act (CPA), could solve the problem of passive consumer protection laws in South Africa, consumer watch organisations said on Friday.
The organisations said the country had great consumer protection laws but the failure to enforce made them meaningless.
However, the birth of the NCC was seen as “a new era” in ensuring the effectiveness of consumer protection laws.
“Most laws that are there are not really benefiting consumers because they are not fully enforced,” National Consumer Forum deputy chairman Paul Crankshaw said.
“So this is a new chapter to stamping out unfair business practice and protecting the vulnerable consumers.“
National consumer commissioner Mamodupi Mohlala said the commission would commit to a six-week turnaround for complaints to be addressed and a six-month turnaround for complaints to be resolved.
Among the regulations of the CPA that the commission will be enforcing is the cancellation of fixed-term contract agreements. According to the act, a contract can be cancelled by the customer provided the supplier is given 20 business days notice and all fees up to the cancellation date are paid.
It will further handle complaints where failure or inadequate instructions on a product have caused damage in any way to the consumer and will hold distributors, producers and retailers liable.
The commission will also protect consumers from the much maligned direct marketing practices, where the consumer is often charged for opting out if they do not want to receive marketing material.
The commission said it would create a “pre-emptive block” where consumers can register themselves to block cellphone and e-mail advertising. Marketers will then be obliged to check if a person is registered on this list before sending any advertisements.
Direct Marketing Association of SA (DMASA) informational technology co-ordinator Frank Maitisa said bodies such as his were not much publicised.
He said this was the reason people did not register their details before they fell victim to direct marketing.
“Now with the NCC people will know of these things beforehand because it is well publicised,” he said.
Maitisa said the NCC was also beneficial to direct marketers. He said the DMASA understood the government’s point of view and if anything, the NCC would formalise the direct marketing industry.
The National Credit Regulator (NCR) also applauded the launch of the NCC, saying it would complement the regulator.
NCR senior manager of education and strategy Peter Setou said there would be closer collaboration between the two bodies to enforce the National Credit Act (NCA) and CPA to protect consumers.
Setou said although the mandate and functions of the regulator and of the NCC were different, a consumer could still lodge a complaint relating to the NCA with the NCC. - Londiwe Buthelezi