Tag Archives: Consumer Protection Act

Consumer Protection Act appears to have become an April Fools’ joke!

Last year, on April Fools’ Day, the Consumer Protection Act became effective, and was heralded as being much-needed legislation to protect consumers against poor service, misleading advertising, and the sale of shoddy products. With the legislation came the establishment of the National Consumer Commission, which was to receive complaints from the public against businesses contravening the Act, and to act against them. Now it appears that the National Consumer Commission is a near failure at executing its mandate.

According to The Times, the National Consumer Commission’s head Mamodupi Mohlala-Malaudzi has become a keen issuer of compliance notices against businesses, many of which have been overturned by the Consumer Tribunal, at a great cost to the businesses affected even if they were successful in getting their cases withdrawn.  A report prepared by the Consumer Tribunal about the operation of the National Consumer Commission has found that its major weaknesses are that compliance notices have been issued without following the correct procedure or being ‘defective’, ‘failure of the commission to understand the act’, issuing notices which the Consumer Protection Act does not allow, badly written documents with errors, ‘contemptuous and unprofessional conduct by the commission when dealing with opposing lawyers and the tribunal‘, and ‘undermining the work of the tribunal’, very serious allegations indeed!  In addition, the National Consumer Commission was found to base its decisions on ‘subjective views’.

It was the findings of this (confidential) Consumer Tribunal report that the National Consumer Commission used to (unsuccessfully) try to have the Consumer Tribunal’s rejection of the Commission’s case against Auction Alliance set aside in the Pretoria High Court.

A compliance notice can cost a business found guilty in terms of the Consumer Protection Act R1 million or 10% in annual turnover if the ruling of the National Consumer Commission is not adhered to.  To date 33 cases have been referred to the Consumer Tribunal, including companies such as Eskom, City of Johannesburg, BMW, Audi SA, Peugeot Citroen SA, Kia, Volkswagen, Telkom, Vodacom, MTN, Top-TV, Cell C, and Multichoice. Of these, the correct procedure in issuing a compliance notice was not followed in six cases, and the Commission did not file responding affidavits to thirteen of the notices!  The newspaper article quotes the example of the City of Johannesburg, against which 45 compliance notices have been set aside!  Only big corporates can afford to challenge a compliance order, due to the cost involved, meaning that smaller businesses are forced to abide by such orders, even if the complaint is unjustified.

It would appear that Mohlala-Malaudzi’s days are numbered at the National Consumer Commission, as her contract with the Commission has not been renewed, expiring at the end of September, a matter which she took to the Labour Court and lost.

In dealing with businesses, it is surprising how few companies know about the Consumer Protection Act, and abide by it.  One of the clauses of the Act prescribes that all repair work must be preceded by written and signed off quotes, but this rarely happens, as we have experienced for car services and repairs at Mercedes Benz in Century City, where they are quick to add R10000 – R20000 of extra nice-to-have part replacements.  We also saw a notice at All Active Electric in Sea Point, which states that repair quotes not accepted will be charged at R50, contravening the Act. Two lamps were given to this company to be fixed, one requiring a wire to be fitted back into the switch, and another needing the brass fitting holding the bulb to be repaired. We were shocked when the bill came to R150, 50% of the purchase cost of the lamps, with additional repairs done which were not requested.  When queried, the staff member quickly dropped the price to R95.  No quote was received, and even the lower price felt like a rip off, despite the quick 24 hour service.  Action TV came to fix a TV channel reception problem at our guest house last week, and could not find a solution on its first visit, despite having done past repairs. A ‘booster‘ was deemed to be necessary, and despite asking, we were not given a quote, being promised one the following day!   The bill has come to R4650, including the booster costing R1780, cabling to the value of R950, and a number of splitters.  The TV system was installed at the guest house 14 years ago, and has worked perfectly without all these extra items.

It is clear that the National Consumer Commission needs to get its house in order, and that it needs a new broom when its head leaves its employ.  It clearly also needs an advertising campaign to inform business owners of their obligations in terms of repair quotations.

Chris von Ulmenstein, Whale Cottage Portfolio:   www.whalecottage.com Twitter: @WhaleCottage

Glasfit Sweet Service and Premier Shoes Sour Service Awards

The Sweet Service Award goes to Glasfit in Worcester, and was nominated by Michael Mackenzie of McGregor: “I should like to nominate Walter Schonborn of Glasfit, Worcester for his exceptionally friendly and helpful service and indeed to the efficient service of Glasfit in general. A stone thrown up from a passing lorry cracked my windscreen, fortunately I was close to Worcester on my way to Cape Town. I stopped at Glasfit and Walter spontaneously noted all the details of my car, contacted my insurance brokers, completed a insurance claim document and telephoned the Glasfit garage in Cape Town and arranged for them to obtain a new windscreen and fit it for me once I arrived in the city. On my way, Elmo from Glasfit Cape Town, telephoned me to confirm the arrangements, offered to give me a lift if I required it and ensured that the job was completed during that afternoon – and at no cost to me!”

The Sour Service Award goes to Premier Shoes on Kloof Street in Cape Town, for quoting ‘R100 – R135’ to have a new numberplate made, but charging R165 when calling to say it was ready.  The owner could not explain the reason for the increase (two plates cost R220), and would not budge from his quoted price, even when I mentioned the Consumer Protection Act, saying that I did not have to take the numberplate, as he could re-use it.   I decided to not take it, on principle, and had it made elsewhere, and got it for a more reasonable price, and more quickly.

The WhaleTales Sweet & Sour Service Awards are presented every Friday on the WhaleTales blog.  Nominations for the Sweet and Sour Service Awards can be sent to Chris von Ulmenstein at info@whalecottage.com. Past winners of the Sweet and Sour Service Awards can be read on the Friday posts of this blog, and in the WhaleTales newsletters on the www.whalecottage.com website.

Cape Consumer Court for complaining customers coming!

Interesting is the news that the Western Cape province is to introduce a Consumer Affairs Tribunal next month, given the existence of the National Consumer Commission which deals with consumer complaints relating to the Consumer Protection Act nationally.  The reason for this may be that the National Consumer Commission appears to be understaffed.

The Western Cape has had its own Consumer Protector for a number of years, and received 9000 consumer complaints in 2011, of which it was able to resolve two-thirds, reports the Cape Argus.  Complaints which have received ‘stalemate‘ status between supplier and customer will be the first ones to be heard by the Consumer Affairs Tribunal, which will run like a court.  Outcomes of cases heard by the Consumer Affairs Tribunal will be the replacement of products or the payment of refunds/compensation to consumers.  A similar consumer court has already been introduced in the Gauteng province. The largest number of consumer complaints relate to the motor industry, ‘serial offender’ cellphone companies, and small food retailers, says the National Consumer Forum.  A bath re-glazing company will be one of the first local companies brought to the Cape consumer court.

The Western Cape Consumer Affairs Tribunal will be chaired by Advocate Robert Vincent, with Advocate Mandla Mdludlu, Herman Wessels, Jacki Lange, Theo Burrows, and Selby Tindleni as further members of the Consumer Tribunal, reports Bolander. Complaining consumers will be represented by an attorney of the Office of the Consumer Protector, while companies can appoint their own lawyers.

The shortage of funding for the National Consumer Commission may result in a four month closure of its call centre, writes Business Report, given the vast shortage of staff.  Of the 28000 complaints it receives per month, its five call centre operators can only deal with 8000.  The National Consumer Commissioner Mamodupi Mohlala is asking for a budget of R 134 million, saying that without the funding ‘we are rendered toothless and there will be serious consequences’.  At any moment 70 calls are on hold at the National Consumer Commission call centre.  Fifteen cases have been brought before the National Consumer Tribunal since April last year, when the Consumer Protection Act came into being.  Investigations of the country’s four largest medical aid schemes, cellphone operators (Cell C, Vodacom, MTN and Telkom), pharmaceutical companies, Checkers/Shoprite, JD Group, and the Lewis Group are being undertaken by the National Consumer Commission.

Chris von Ulmenstein, Whale Cottage Portfolio, www.whalecottage.com Twitter:@WhaleCottage

Tafelberg Furnishers Sweet Service and Sinnfull Ice Cream Emporium Sour Service Award

The Sweet Service Award goes to Tafelberg Furnishers, who immediately agreed to replace a faulty Sunbeam frying pan, bought in August, when it was returned to the Green Point branch.  Whilst the purchase date was checked on the slip, the faulty pan was not tested, the manager taking the customer’s word for it.  The exchange is compulsory in terms of the Consumer Protection Act, and I was delighted that they abide by it.

The Sour Service Award goes to the Sinnfull Ice Cream Emporium in The Promenade in Camps Bay, which is looking very tacky, its display cabinet having sections broken off, some of the leather chairs being torn but put out every day, often looking dirty in the passage outside the shop (the assistant telling me that it is the centre’s responsibility to clean in front of their store), the music blaring, and the shop generally looking run-down and not as top-quality as it once was.  On my last visit, the manager of the store was chatting away on his cellphone, in full view of  a number of customers wishing to be served! The manager looks like he is ready for the beach, wearing beach shorts and is barefoot, and is generally not customer-friendly.  Despite feedback to a more senior manager and the owner Britta Sinn, little has changed, other than a recent price increase of 20 %!

The WhaleTales Sweet & Sour Service Awards are presented every Friday on the WhaleTales blog.  Nominations for the Sweet and Sour Service Awards can be sent to Chris von Ulmenstein at info@whalecottage.com. Past winners of the Sweet and Sour Service Awards can be read on the Friday posts of this blog, and in the WhaleTales newsletters on the www.whalecottage.com website.