The new Consumer Protection Act, which came into effect last Friday, has resulted in the National Consumer Commission (NCC) being flooded with calls.
The motor industry has come in for its fair share of complaints from irate motorists. From dodgy deals to bad service, the NCC is going to be very busy sorting out complaints.
And in future, manufacturers will be forced to notify customers of a recall. However, a recall does not mean that a whole car has to be replaced because of, for instance, a faulty washer. What is required is that the manufacturer or dealer replaces the faulty component or part.
NCC head Mamodupi Mohlala said the commission had a six-week turnaround time for simple complaints and six months for more complicated ones.
The act's provisions include, among others, consumers' right to privacy, putting a stop to unwanted direct marketing, their right to cancel fixed term agreements, and right to return goods and be refunded.
According to Automobile Association's spokesman, Gary Ronald, selling a used vehicle won't be the same for crooked car dealerships looking to hoodwink unsuspecting consumers.
The new act means used car dealers will be exercising extra caution if they plan to implement business practices that violate consumers' rights.
"The essence is simple, if they contravene the provisions of the act, they get penalised - some good news, for a change for the South African motorist," says Ronald.
Consumers also have easier access to enforcing their rights with the new ACT. This means the days of relying on the law of contract, and obtaining legal relief to make sure your side of the story is heard, are over.
"You will no longer be forced to incur legal expenses to appoint an attorney to take action, you can now approach adjudicative bodies like the motor industry ombudsman or the consumer commission directly when seeking relief," he said.
Also notable is the cooling off period. If you buy on impulse you can return your car, with no strings attached. This cooling-off period does have clear parameters: it lasts for a period of five business days and can only be invoked if the buyer has bought a car as a result of direct marketing concerning that same product from a supplier.
Ronald says the common law principle of buying a car voetstoots, or what you see is what you get, is now a thing of the past. Consumers will need to be made fully aware of what they are getting themselves into. False, misleading or deceptive representations are also a no-go, and suppliers will need to be wary of making false representations or failing to disclose a material fact regarding the condition of pre-owned vehicles to a consumer. Consumers have the right to cancel the sale, should they feel they have been deceived. As a result, the industry will have to place increasing emphasis on customer service and satisfaction.
According to the compliance manager of Associated Motor Holdings, Brandon Cohen, the act should not be seen by the motor industry "as the end of the world".
"In fact, it is a real positive," Cohen says. According to him, there is nothing really revolutionary in the new legislation. Consumer protection has a long history in South Africa an previously there were some 48 pieces of legislation in this regard, but these have been incorporated in various laws.
Now, for the first time, everything is collated into one document, Cohen says. For the business sector and the motor industry in particular, the act has the benefit of changing the perception of the industry. Motor companies will gain customer trust and support and it will ensure repeat business.
Business will in future also have to ensure that all documentation presented to customers is in plain language, sounding the death knell for fine-print legalese.
"This will prevent misunderstandings, which will be of benefit to businesses as well as their customers," Cohen says.
The new act also makes provision for trademark protection on parallel imports, as importers of such products will have to indicate that they have not been imported by an authorised dealer or distributor and are not guaranteed.
"This will create a clear distinction between genuine and parallel parts," Cohen says.