COMPANIES THAT FAIL
to go back to the drawing board – and, where necessary, rewrite their loyalty and rewards programmes to comply with the terms and conditions of South Africa’s Consumer Protection Act – will be breaking the law and could be prosecuted when the Act comes into force later this year.
Though the Consumer Protection Act (CPA) was assented to on 29 April last year its effective date has been suspended by 18 months to allow organisations to prepare and ensure compliance when it comes into full force and effect at end-October this year. The CPA will have a substantial impact on all businesses dealing with consumers (including legal entities, except to the extent they may be excluded when the regulations are published)), including contractual terms, potential liability, marketing practices, complaints handling, product labelling and display, product safety, loyalty schemes, pricing, sales records, pre-paid credits and waste disposal.
Werksmans Advisory Services director Ina Meiring welcomes the protection the new law will offer consumers. She says the common practice of imposing limitations on