Consumer Protection Act (Act 68 of 2008)
Grade 12
, Question 1 (ESSAY):
The introduction of the Consumer Protection Act (CPA), 2008 (Act 68 of 2008) forced
businesses to change the way they had been conducting business. This Act impacts on how
businesses should treat consumers. Now businesses are seeking legal advice on the impact
of this Act on their operations.
Give an in-depth analysis of the Consumer Protection Act by deliberating on the following
aspects:
1.1) Outline the purpose of the CPA.
1.2) Discuss FOUR consumer rights, as specified in the CPA.
1.3) Evaluate the impact of the CPA on businesses.
1.4) Suggest practical ways in which a business could comply with this Act.
Answer:
1.1) Introduction
-The CPA was promulgated/ introduced to redress economic inequalities of the past.
-It applies to consumers/buyers in South Africa.
-It promotes the social/economic welfare of consumers in South Africa.
-The Act impacts on almost every business sector in South Africa.
-Consumers are regarded as recipients of goods and services.
1.2) Purpose of the Consumer Protection Act (CPA)
Promotes fair/accessible and sustainable places for people to sell their products.
Establishes national standards to protect consumers.
Provides guidelines for better consumer information and to prohibit unfair business
practices.
Promotes responsible consumer behaviour.
Promotes consistent laws relating to consumer transaction and agreement.
Establishes a National Consumer Commission (NCC).
Ensures that consumers have access to information they need to make informed
choices.
Promotes the rights and full participation of historically disadvantaged individuals as
consumers.