Finweek English Edition - - Loyalty Rewards -

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

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