what is the south african approach to consumer protection ... · what is the south african approach...

What is the South African

approach to consumer

protection and consumer

education?

Introduction

• Legislative prescripts relating to consumer protection; – Constitution of the Republic of South Africa;

– Provincial legislation;

– Consumer Protection Act

• Current scenario within provinces; – Legislation;

– Infrastructure;

– Courts/tribunals

• Consumer Protection obligations in terms of consumer education;

• National Structures & Programmes implemented : Consumer Protection Forum

CONSTITUTIONAL PROVISIONS

• Schedule 4, Part A of the republic of South Africa Constitution

provides that consumer protection is an area of concurrent

legislative jurisdiction; • What does this mean? Both spheres of government may pass legislation on

consumer protection; • 9 provinces in SA together with national government;

• Western Cape Consumer Affairs (Unfair Business Practices) Act, 2002

(Act 10 of 2002) • Establishes provincial office; • Empowers office to investigate consumer complaints; • Regulates manner in which such investigations and processes may occur; • Empowers the office to provide such other services which are necessary for the

effective implementation of consumer protection services; • One of the primary and important additional functions is Consumer Education;

• Consumer Protection Act, 2008 (Act 68 of 2008; • Consumer rights; • Consumer education.

4

Organizational Structure

Office of the

Consumer Protector

Legal Institutional

Support - Tribunal

Complaints

Management

Consumer Education

and Marketing

What is the current position within provinces?

• Provincial legislation • 8 out of the 9 provinces have legislation on consumer protection matters; • Remaining province in final stages of implementing its own legislation;

• Provinces working on the alignment of existing legislation with the CPA to ensure uniformity;

• Strong emphasis on redress options; • Strong emphasis on consumer education; • Only 4 out of 9 provinces have operational consumer courts/tribunals

• Western Cape: tribunal appointed; draft regulations published; operational by January 2012 latest;

• National legislation: Consumer Protection Act • The CPA obligates provinces to play an integral role in the enforcement of the

Act;

• Strong emphasis on cooperative governance between provinces and the NCC;

• Emphasis on consumer rights and consumer education.

What are some of the consumer education

strategies within the Western Cape?

• Population within the Western Cape is diverse ;

– Living standards fluctuate;

– Rural vs Urban spread;

– Accessibility of resources;

– High level of illiteracy (especially within rural areas

and on farms)

• Need for flexible strategies to meet different

needs;

– “Business as Usual”

• use of print media and radio (especially community

radio stations);

• Community engagements on topical issues e.g. basic

financial literacy, redress services and debt management;

• Sector specific engagements e.g. public sector, ngo’s,

private sector, Trade unions;

• Engagement with schools and academic institutions;

• Strategic partnership development.

– “Business Unusual”: The need exists to do

things differently:

• Digital and social marketing: The increase in

the usage of the internet and mobile

communications, and the advancement in

technology, has led to consumers changing

the way they communicate.

• We therefore need to change our approach

• How?

– E marketing;

– Social media (facebook, twitter)

– Blogging;

– Mobile sites;

– Effective use of sms

– Mobile advertising (please call me functionality)

– What are the benefits of digital marketing/media?

– Reach (high exposure and ability to immediately

engage with your audience);

– Targeted audience (determine

times/days/age/demographics);

– Frequent and effective;

– Response capability (data collection)

What does the Consumer Protection Act say about

Consumer Education?

• Section 3: Purpose of the Act is amongst others: • Improve consumer awareness and information and encourage responsible

and informed consumer choice and behavior; • Promoting consumer confidence , empowerment and development of a

culture of consumer responsibility, through individual and group education, vigilance, advocacy and activism.

• Section 96(a)

• The NCC is responsible for implementing education and information measures to develop public awareness about the Consumer Protection Act.

What does the Consumer Protection Act say about the role of civil society in Consumer Education ?

• The important role which civil society plays in consumer education is

acknowledged in the Act; – Section 77 provides that the NCC may cooperate/support civil society with regards

to:

• Consumer advice and education activities;

• Consumer publications;

• Promotion of consumer rights ; and

• Advocacy of consumer interests.

• The formal accreditation of civil society bodies is provided for in

section 78 of the Act;

• Clear mandate within the Act which obliges consumer protection

authorities to place Consumer education on the

HAS CONSUMER EDUCATION BEING TACKLED ON

AN INTEGRATED LEVEL BETWEEN VARIOUS

AUTHORITIES? • Role of the Consumer Protection Forum (CPF)

• What is the CPF?

• Composition and membership;

• Role and function?

• Specific activities addressing Consumer Education?

• Business plans developed on an annual basis;

• Consumer Education programmes and initiatives identified;

• Joint activity plans developed;

• Roll out on a provincial and national level;

• National impact - same message conveyed across the country.

What are some of the consumer education

programmes that have being implemented?

• “Spend Wisely Campaign” • Annual National campaign aimed at informing consumers about: • Debt management;

• Pitfalls of over indebtedness; • Redress measures available to consumers who are over indebted; • Rights afforded to consumers ito National Credit Act, Consumer

Protection Act.

• “Savings month campaign” • Focused on the importance of saving; • How to minimise your exposure to debt; • Importance of financial planning.

• “Know your consumer rights campaign” • Implementation of the Consumer Protection Act; • Impact of the National Credit Act; • Impact of the legislation on consumers and business; • Redress options to consumers; • Importance of civil society in the arena of consumer education

Conclusion

• We need to strengthen our efforts amongst each other

(government, civil society, sectors) to ensure that the rights of consumers especially the most vulnerable, are protected and

enforced.

THANK YOU!!