The Consumer Protection Act and your business
Do you know what products and services your consumers want and how they want to receive it? Define value? Is it measurable?
As with all businesses, your main aim is to offer your consumers value, whether it be a product or service. Unfortunately, many businesses leave consumers under-valued, making them feel hard done by or cheated on.
To protect consumers from any inferior quality goods or lousy services, The Consumer Protection Act (CPA) has been put into practice in South Africa.
Consumer legislation poses consequences for all suppliers in the supply chain, and more serious financial implications or close of business if not dealt with in the correct manner.
Business owners need to understand their rights, obligations and risks in terms of the CPA. Certain aspects of their business should be reviewed and evaluated, for example:
- Marketing and advertising campaigns
- Marketing material and labels
- Product packaging
- Money back guarantees
- Pricing models
- Supplier warranties and guarantees
- Mitigation processes
Why is the CPA so important?
Consumers know what’s going on
Most consumers are well informed about their rights and responsibilities and they know how and when to take legal action against companies that have failed to full an obligation.
Consumers are treated fairly
Without the CPA, consumers were exploited in various ways, such as:
- Receiving inferior quality goods
- Overpaying for items
- Receiving unsafe products
- Receiving wrong measurements for items
Consumers can complain
Consumers have the right to present their complaints in appropriate consumer courts to ensure that justice is served in favour of the consumer if they have been wronged by any business.
Honest business actions are encouraged
As businesses that aim to improve their consumer satisfaction are publically acknowledged and favoured, honest business dealings are increasing throughout the country. Ethical practices play a major role in business practices. By practicing correct business dealings, customers are not subjected to unfair dealings.