Understanding the new Consumer Act

Consumers are beginning to reap the fruits of the new Consumer Protection Act, especially those who could not cancel fixed or life-long contracts.

In the past Frederick Nong would have been bound to the contract he signed with The Holiday Club if he failed to cancel within the cooling off period.

He was allowed to revoke it but would forfeit the initial fee he paid to kick-start his timeshare contract.

Nong, an existing client, said he signed a second contract on the understanding that he was upgrading the existing one.




The upgrade had additional benefits like car hire, overseas trips and spa treatments.

Nong, who was retrenched in 2003, said he completed the upgrade forms after the agent, Siyabonga, assured him he would freeze his upgrade until he received the go-ahead from him.

"He was also aware that I am a pensioner and no longer employable," Nong said.

His wife, Modieng, 61, who is due for her pension this year, said they made it clear to him they could only consider the upgrade once she received her pension pay-out and had settled all their debts.

"We had just returned from Egypt, which we thought might be our last holiday, considering our age, and had spent a lot of money ... but we were somehow persuaded to complete the upgraded contract," the grandmother of four said.

Modieng said her husband was made to complete the National Credit Regulator forms to assess his ability to pay despite telling Siyabonga that he was no longer employed.

"But to cover their tracks Siyabonga asked for my credit card details and processed payment without my consent.

"We should have followed our instincts and refused to complete the forms but decided to give this young man the benefit of the doubt - only at our peril," Modieng said.

Nong said he was upset when his wife told him Siyabonga had betrayed their trust and that The Holiday Club debited R7100 from her account.

"Siyabonga has not explained his action and now switches his cellphone off once he recognises my voice," Nong said.

He said he suspects that Siyabonga misled them because he knew Nong would not be protected by the Consumer Protection Act.

Riaan Oosthuizen, a national manager of The Holiday Club, agreed to cancel the contract but said Nong would forfeit his R7100.

The consumer Protection Act gives consumers more rights

All consumers need to do is to know their rights to avoid getting swindled.

Rosalind Lake of Deneys Reitz Attorneys said before you rushed off to the consumer commissioner there are a few things you should know:

* Any contract you signed, transactions you made or products you bought before April 1 are not subject to the provisions of the act.

For example, fixed term agreements, like a gym contract or cellphone contract may be cancelled before the end of the period you signed up for and you cannot be forced to pay an unreasonable penalty.

"But this does not mean the contract you entered into before April 1 can now be cancelled on 20 days notice.

"The rules that apply for that agreement will carry on for the duration of that contract," s Lake said.

* The act gives you a right to return goods.

"Under the act you will have extensive rights to return goods if you are coerced into an agreement through direct marketing, if wrong goods are delivered to you or they do not match the description of the sample you were given or if goods are defective," she said.

According to Lake you will also be entitled to a warranty that says goods you buy are safe and free from defect for a period of six month after you receive them.

She adds this does not mean goods bought over the festive season which do not comply with these requirements can now be returned to the supplier today or after April 1, nor can you complain to the consumer commissioner about this fact.

"You will have to rely on any existing warranties the supplier gave you or the common law rights you had before the act came into force," she said.

As for the service providers who had no return policies, they will have to make sure they comply with the act.

Those who had the return policy must replace their notices with the new one.

The office of the consumer commissioner has phrased it nicely for them and it should read as follows:

"Please choose carefully. We do not normally give refunds if you simply change your mind or make the wrong decision.

"You should choose between a refund, exchange or your money back where goods are faulty, wrongly described, different from the sample shown to you or do not perform as intended.

Please retain your receipt as proof of purchase."

Be warned: not all complaints you have as a consumer in terms of the Consumer Protection Act can be dealt with by the consumer commission, Lake said.

According to Lake there are still certain issues, such as the interpretation of the act and claims in relation to harm caused by a defect or unsafe products, that will have to be addressed as at present through the court system.

"The Consumer Protection Act is not a quick way to make money," Lake said.

Lake added that there were limited instances in which a consumer could be compensated for any loss with an award of money.

"Most of the solutions provided for in the act are about ensuring that you receive what you are entitled to, that you are not misled and that you are not forced to pay for products or services which do not exist or poorly delivered or defective goods," said Lake.

She said it would take some time for suppliers and consumers to comply and understand their rights as from today onwards.

"It is important for everyone, no matter what side of the supply chain you are on, to ensure that you educate yourself on your rights and obligations," Lake said.

Source: Business Live/The Sowetan

For more information see booklet: Your guide to consumer rights & how to protect them by the dti