across the bar

new consumer protection act gets going on 28 april 2010

by Steve - Posted 29 April 2010

The Consumer Protection Act 68 of 2008 became an Act by publication in the Government Gazette on 28 April 2009. The actual implementation of the new law was staggered over 18 months with the 2 important milestones being 28 April 2010 and 28 October 2010.

On the first milestone - 28 April 2010, the Minister of Trade and Industry must start the process of establishing the bodies and structures required to administer the new law, including the National Consumer Commission and Tribunal. The Minister will also need to be in a position to deal with the accreditation process for consumer groups who want to be recognised under the Act.

Once this has been done, the Minister must then set about the task of making regulations to flesh out various sections of the Act. This process will require further consultation with the Commission and accredited consumer groups. The most important regulations will be those pertaining to: 

a)    the functioning of the Commission and the Tribunal;

b)    what contractual terms will be regarded as unfair, unjust and unreasonable to consumers;

c)    the publication of the various forms required by the Act to be used by suppliers and service providers in their dealings with consumers.

The Minister has been given 6 months to get all this up and running which seems unlikely to be enough time. This time period can be extended by a further 6 months on application by the Minister.

More importantly, manufacturers, importers and retailers who release defective or unsafe products onto the market after 28 April 2010 may now be held liable under the strict product liability provisions of the Act. Consumers who buy defective products after 28 April 2010 will be able to sue the suppliers of the defective product without having to prove that the supplier was negligent. Consumers will be able to recover damages for any loss they have suffered because of the defect.