Consumer Protection Bill Retailers’ Association Oral Submission: National Assembly August 2008 (written submission endorsed by BUSA) J Jefferies and C Malan

Background: Support the objectives of the Bill Balance the rights of consumers with the needs of business DTI: consulted widely and made changes to the Bill

Main concerns: official language requirement Not in Bill but suggestions that it could be included again Plain and understandable language requirement Extremely onerous to business to implement official language requirement If decide to include it again, RIA required

Main concerns: duplication & overlap of laws Bill is very broad Aim of uniting fragmented laws Overlaps with other pieces of legislation  uncertainty & denial of rights sought to be protected S 2(9) of Bill FAIS Act, NCA, Debt Collectors Act, Foodstuffs, Cosmetics & Disinfectants Act, Labour Legislation

duplication & overlap of laws (cont) Over-regulation: s 5(2) exemption: threshold and supply chain requirement Negotiated contracts v standard form contracts

Main concerns: implied warranty of quality S 56: may return goods if meet “quality requirements” within 6 months of purchase – supplier must fix/replace/refund 3 months after that: replace/refund May not contract out of this (s 51) Blanket 6 and 3 month periods not appropriate for all goods Adequate proof of purchase? Refund?

Main concerns: liability for damage caused by goods S 61: strict liability (i.e. not have to prove fault) Costs to business; insurance premiums (smaller businesses?) Flow of costs to consumer Instead: improve consumer access to redress

Main concerns: Regulations Detail will be in Regulations Only drafted in 2009 Unable to comment fully on certain of the sections e.g. s 12, s 14 Unable to understand full impact on business without the Regulations

Main concerns: institutional structures: principles We have dealt with institution structures fully in our written submission First option = conciliation; ADR Sectors to have own dispute resolution mechanisms

Detailed concerns: Contained in written submission Re-wording of certain areas provided Highlight: credit agreements; insurance policies (by intermediaries) Extra-territorial application S 20: return of goods:  S 20(6): return of foods consumed and certain goods (e.g. software, CD’s, DVD’s) problematic  Proof of purchase and definition of refund required Admin penalties: double fining with other laws possible

Conclusion: Support broad objectives Need to protect consumer rights Balance needed: business v consumers Welcome opportunity to engage further with dti on the Bill and with respect to the Regulations -000-