CONSUMER PROTECTION ACT & HOW IT EFFECTS YOUR COMPANY

With the Consumer Protection Act, the consumer gets a lot of protection and suppliers are at risk of lawsuits deriving from product usage and service delivery. Companies wondering whether they are at risk should get a copy of the act and get legal assistance regarding the interpretation thereof.

Companies involved in direct or mail marketing are definitely at risk of being on the wrong side of the law without knowing it. There are some crucial changes which effects direct marketing companies. Another concern is that of retailers displaying one price and when the consumer gets to the till, the price charged differs. Prices advertised and displayed must be the same as what the consumer at the end of the day pays. Customer loyalty programs are most certainly also hotly debated issues containing tremendous risk of penalties for companies offering such.

The warranty period on products must according to the Consumer Protection Act be at least six months. Other areas which are of concern include that of consumer fixed period contracts, extending of credit, contracts containing Latin words, and the labeling of products. Incorrectly labeled products should be addressed immediately. A consumer doesn’t have to prove damage or harm because of such. The supplier is now responsible for proving the opposite (damage) should a dispute arise.

Foreign companies are concerned with some of the regulations since not only the local retailer, but also the original supplier can now be held responsible for any damage or harm caused by a faulty product or incorrect labeled product. From the above information, it is abundantly clear just how wide the scope of the Consumer Protection Act is and it is of the utmost importance for a company to be fully aware of the effects and amplifications of the Consumer Protection Act with regards to Consumers Rights.

- By Roslyn Lerena (Candidate Attorney)




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