OVERVIEW OF THE CONSUMER POLICY FRAMEWORK Parliamentary Information Session 08 October 2004

OVERVIEW OF THE CONSUMER OVERVIEW OF THE CONSUMER POLICY FRAMEWORKPOLICY FRAMEWORK

OVERVIEW OF THE CONSUMER OVERVIEW OF THE CONSUMER POLICY FRAMEWORKPOLICY FRAMEWORK

Parliamentary Information Session

08 October 2004

Parliamentary Information Session

08 October 2004

OBJECTIVE OF THE PRESENTATION

OBJECTIVE OF THE PRESENTATION

• To provide and overview of the policy and law review process;

• To inform you about the Draft Green Paper on the Consumer Policy Framework;

• The obtain your inputs on the policy document

• Various initiatives between 2000-2001 – resulted in a number of “research” documents;– Documents were not holistic in approach;

Process reinitiated towards end of 2002– change in focus towards repositioning consumer

protection;– drive competitiveness through building consumer

confidence and business excellence;– recognises the need for a comprehensive framework of

statutes, policies and related government authorities, that is consistent and coherent;

• Project Manager appointed in April 2003

Background to the PolicyBackground to the Policy

• Research & Processes: – Reviewed legislations and mechanisms pertaining to

consumer protection;• Standards Act, Consumer Affairs Act; Meat Safety Act,

Genetically Modified Organisms Act, Foodstuffs, Cosmetics and Disinfectants Act etc.

– Initiated a National Consumer Survey• Survey of the current environment;• What issues should government address;

– Conducted an International Legislative Benchmarking study;

– 29 April 2004 workshoped draft policy document with provincial counterparts;

– 7-8 May 2004 hosted an international and local experts review team


• Research & Processes:

– June-August 2004 conducted focus group workshops with selected stakeholders;

– August- September 2004, submitted draft policy to Cabinet for approval to consult broadly


• 5 pillars of strategy:– Establishing consumer rights;– Making markets work for consumers;– Improving access to redress;– Developing and promoting consumer

advocacy & activism– Promoting improved service levels and

accountability in public and private sectors

Core Policy IssuesCore Policy Issues

• Will repeal:– National Consumer Affairs (Unfair

Business Practices) Act;– Sale and Service Matters’ Act;– Alienation of Land Act;– Trade Practices Act

• Will result in amendments to sector laws

Overarching new consumer lawOverarching new consumer law

• Practices to be Prohibited:– Misleading advertising and selling practices;

• bait advertising,referral selling,pyramid selling, third line forcing, inertia selling etc

– Unfair terms in consumer contracts;• Exclusion of liability, binding the consumer when the

co.is at fault, restriction of consumer rights & remedies, unilateral variation of terms etc

– Abuse of private and personal information;– Product safety and liability;

• Explicit recognition of a right to product safety in law;• Overarching role of SABS;• Liability on manufacturers & other parties

Establishing consumer rightsEstablishing consumer rights

• Competitive issues & minimum mandatory requirements:– Product quality;

• Give consumers assurance that what is provided is fair and of an acceptable standard

– Guarantees, Warranties and Aftercare;• Where offered, must be honored

– Disclosure and labeling;• Product labeling and description of products

&services;• Price transparency;• Country of origin;• Terms and conditions pertaining to transaction

– Rights in relation to essential services

Establishing consumer rightsEstablishing consumer rights

• Concurrent provincial laws– No need for immediate change;– Eventually harminisation with national framework;– Policy level: MINMEC– Enforcement: national laws, regional laws and

international mechanisms• Concurrency with other regulators

– Extend consumer protection to sectors;– Establish coordinating mechanisms at enforcement

level

Concurrency with provincial & Sector law

Concurrency with provincial & Sector law

Proposed regulatory framework• New national regulator and tribunal

– Champion for consumer protection – proactive identification and prosecution of consumer abuses and contraventions;

– deal primarily with national businesses, systemic problems and cross border issues;

– cross-cutting responsibility for education;– provides single entry point for consumers

(referrals and monitoring)

Improving access to redressImproving access to redress

• Provincial consumer affairs & courts:

– deal primarily with individual complaints against local/provincial businesses

• Sector regulators– Deal with consumer complaints and education in

sectors

• SABS– Must deal with product safety issues;

harmonization and co-ordination


Other Mechanisms• Service NGOs, target rural areas

– Legal advice, counseling and mediation – MPCCc provincially– Government Supported Services (accreditation and

monitoring)

• Alternative Dispute Resolution mechanisms:– Business complaints handling;– Statutory mechanisms;– Industry voluntary mechanisms;


• Vision for consumer movement:– Service NGOs

• Product testing, product alerts, information dissemination etc.

– Advocacy NGOs• Research;• Market monitoring;• Policy inputs;• Representation [class action]

• Government (and business) support– Funding & capacity-building programme– Specific powers in law – Recognition

Developing the consumer voiceDeveloping the consumer voice

Private sector (voluntary measures)• Corporate citizenship;• Customer responsiveness;• Effective complaints handling systems;

• Government support:– Standards (largely voluntary)– Current incentives– International and local best practices (guidelines, practice notes)– Recognition (business awards)

Public sector• Extend Batho Pele to local government (mandatory)• Extend consumer protection to utility regulators;• Foster coordination with Chapter 09 Institutions• Equivalent application of consumer law in the public sector

Promoting service excellencePromoting service excellence

THANK YOUTHANK YOUQUESTIONS & CLARIFICATIONSQUESTIONS & CLARIFICATIONS

THANK YOUTHANK YOUQUESTIONS & CLARIFICATIONSQUESTIONS & CLARIFICATIONS