Following on from my post about the public hearings of the Consumer Protection Bill, here are some of the main reasons why the Bill has been drafted:

• There has been no substantial review of consumer legislation since the enactment of the Unfair Business Practices Act in 1989.
• The South African domestic environment has changed significantly since then, including:
  • Opening up of markets
  • A growing middle class and new entrants into the market
  • Growing incidences of scams and unfair practices
  • Weak enforcement mechanisms and structures
  • Uneven and fragmented regulation across sectors
  • Legislation that is biased towards suppliers based on the “buyers beware” principle
  • An outdated common law regime that is routinely not compiled with and depends on private remedies through the courts, which is costly for consumers.

With this in mind, the Consumer Protection Bill has been formulated to ensure that everyone is protected and can realise their rights.  In her presentation, Zodwa Ntuli from the Consumer and Corporate Regulation Division of the dti, stressed the fact that the legislation must be holistic, comprehensive and inline with international best practices.  Watch out for our next post about the Policy Objectives of the Bill.