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THE 2015 Year-end Holiday Survey conducted by Deloitte has revealed that while 33% of consumers will be spending less money this festive season on holidays, furniture, entertainment and leisure than in 2014, 55% of South African consumers will still spend money to enjoy their holidays.

These stats prove that retail businesses need to brace themselves for the festive season shopping spree and be sure to implement all precautions that can reasonably be expected of them as set out in the Consumer Protection Act (CPA).

This is according to Simon Colman, underwriting executive at SHA Specialist Underwriters the largest liability underwriting management agency in Southern Africa which says retailers need to ensure that their insurance policies adhere to the strict liability provisions of the CPA.

Retail stores have a responsibility to their consumers to ensure the safety of the products they sell and failure to meet this responsibility could result in an expensive lawsuit.”

When it comes to faulty merchandise specifically, the CPA may prohibit retailers from simply passing the buck to manufacturers, says Colman. Many retailers forget that being the client-facing element in the supply chain places them in the line of fire...”

In some instances, the manufacturer and the store could be jointly and severally liable for harm caused by a product.

Nonetheless, retailers need to remember that a multitude of products are imported into South Africa, which means that consumers will find it very difficult to take action against the manufacturer and will instead focus their attention on the local retailer.”

He explains that for this reason, retailers must have broadform liability policies in place that include adequate product liability.