Consumer Law - The law of contract and consumers' rights

Chapter 12 - Consumer Law

The law of contract and consumers' rights

The common law, as well as certain statute laws, protects consumers.

Common law

The common law says that if you buy something which has a fault at the time that you buy it and neither you nor the seller know about the fault, then you can get your money back from the seller, or pay less, depending on how bad the fault is.

See Problem 4: Faulty goods.

If someone sells you something knowing that it has a fault and doesn't tell you about it, you can claim for damages.

Statute law

Statute law also protects consumers. For example, the National Credit Act (No 34 of 2005) provides guidelines for people who want to buy and sell on credit. There is also the Sale and Service Matters Amendment Act of 1995 as well as the Consumer Affairs Act of 1988 and the Harmful Business Practices Act of 1999.

Consumer protection agencies and organisations

There are a number of consumer protection agencies that can assist consumers who wish to lay a complaint.

The government has set up Provincial Consumer Affairs Offices countrywide to provide consumers with protection, information and advice. You can approach a Consumers Affairs Office to intervene in disputes over contracts, quality of products or services. They can be contacted at:

National Government Consumer Affairs office
Department of Trade and Industry
Tel: 9861 843 384

Provincial Consumer Affairs offices: See Resources for contact details.

The following are important bodies that can also be contacted in connection with consumer complaints:

South African National Consumers Union (SANCU): Web: www.sancu.co.za	012-428 7122
Black Housewive’s League:	011-336 5431
National Consumer Forum: Web: www.ncf.org.za	011-313 3237

Consumer courts

Consumer courts have the power to demand the end to unfair business practices that abuse the rights of consumers and to award costs against a person found guilty of such unfair business practices.

Cases will be heard by a 5-member panel headed by a chairperson with legal training.

The court does not have the power to impose fines. However if the court is disobeyed, criminal charges may be laid and could result in a fine of R200 000 or a sentence of five years' imprisonment, or both.

The court may also appoint a curator to take over the running of a business in order to pay back what is owing to consumers who have lost money.

There will be a Consumer Protector appointed in each province who will investigate cases referred to the Consumer Court. The Consumer Protector will decide which cases go to the Consumer Court.

The Consumer Court has the right to search premises, seize documents, summons individuals to court and demand to see documents.

The consumer will not have to pay much to use the court.

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