War on businesses which flout consumer rights
KZN MEC for Economic Development, Tourism and Environmental Affairs, Sihle Zikalala says they will not hesitate to take stern action against businesses that flout consumer rights.
The department has been conducting inspections at various business sites where it has been discovered that some enterprises are engaging in unfair business practices.
These include the selling of expired food products, unregulated micro-lending (loan sharks), imposing extremely high bank charges and reckless issuing of loans with exorbitant interest rates to heavily indebted applicants.
‘What we have discovered during our investigations is shocking to say the least.
‘Some businesses are taking advantage of our poor and vulnerable communities and we have decided to take drastic steps to stop it.
‘In the past few days, we found shops that sell perishable food that expired as far back as 2015. These included infant food products,’ Zikalala said.
The MEC was speaking during a business inspection in Hluhluwe after he was made aware of loan sharks who illegally confiscated identity documents from their clients.
The documents were used to access and control the finances of their clients which included instituting illegal deductions of airtime and social grants.
‘Unlawfully deducting money from our vulnerable citizens who receive social grants is a serious crime and it should be exposed so that the culprits are harshly dealt with.
‘These are serious violations that require serious intervention,’ the MEC said.
Zikalala said his department will continue to conduct unannounced inspections in order to deal with the escalating abuse of consumer rights.
‘We are in the process of establishing a Consumer Court, which will conduct hearings when there are allegations and instances of contraventions of legal prescripts.
‘We want our officials not only to tell us how far they have gone in terms of consumer awareness but they should also report on actions they have taken against non-complying businesses,’ he said.
The MEC, however also praised businesses that embodied good practices.
He said economic growth depends on honest relations between traders and their customers which in turn, results in healthy business.