Bid to get tough on high prices

Suppliers of goods will soon not be able to price their goods in a manner considered unfair to consumers if draft consumer legislation gets the nod.

“Consumers will be able to challenge suppliers of goods if they find prices to be excessive,” competition lawyer and Webber Wentzel partner Anthony Norton said yesterday, referring to the Consumer Protection Bill.

Norton said the bill was “fuzzy” in some respects in that it went into the realm of price regulation, which was covered by competition law.

“The legislation is, in some respects, mirrored in our competition law,” Norton said.

Consumers will be able to launch complaints with a new watchdog panel to investigate and penalise companies that infringed consumer rights.

The panel, which will be called the National Consumer Protection Commission, is expected to be set up by the government next year, and forms part of the trade and industry department's proposals to overhaul consumer law.

The commission aimed to be the first port of call for consumers to lodge complaints, said Norton.

The commission will have wide powers of investigation, including referring a matter for hearing to a consumer court or tribunal. The tribunal can impose hefty penalties, such as 10% of a company's turnover, or a fine of up to R1m.

The bill will make it an offence for companies to disclose confidential consumer information and will provide for the provision of “quality goods and services” for consumers.

“It is unclear what is meant by ‘good quality',” Norton said. The provisions might be open to abuse by consumers as they could be entitled to a refund if they felt they had not received quality service or goods.

Norton said the legislation was interfering with the daily running of businesses and placing onerous restrictions on the way they provided goods and services.

Eric Levenstein, a director at Werksmans Attorneys, said that a significant burden would be placed on small businesses.

“Rather act now to enhance your watchdog processes and ensure the integrity of all products entering the market,” he said.

Source: Business Day

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