Product liability bill alarms retailers

The clause would equally apply to producers, importers, distributors and retailers regardless of whether they had been negligent or not and will require them to take out high levels of insurance to cover themselves.

The National Consumer Tribunal's Magauta Mphahlele told Parliament's trade and industry committee the clause was controversial as consumers would not have to prove negligence on the part of the manufacturer as was now required by common law.

Instead, they would have to prove only that they bought the product and suffered adverse consequences such as illness, injury, damage to property and death because of defects or improper labelling. The bill does include statutory defences that can be used by suppliers.

Mphahlele said retailers would have to ensure their products were safe and would have to take responsibility for their merchandise. They had complained the measure would require them to take out very high insurance to cover themselves. “They see it as a compliance burden,” she said.

Mphahlele highlighted the labelling of genetically modified food as another controversial issue raised by the bill. It did not make labelling of genetically modified food mandatory though Mphahlele indicated that this could change as a result of inputs received during the hearings.

The initial draft of the bill required compulsory labelling, but this was removed after consultation with the agriculture department, which has jurisdiction over the Genetically Modified Organisms Act.

Committee members expressed concern, after an initial briefing on the bill, about whether it could be effective, given that implementation will depend on the establishment of effective provincial consumer protection offices.

Mphahlele said only three of nine provinces had set up consumer courts, largely because of a lack of political commitment to consumer protection.

The bill also makes provision for an office of consumer protection to be established as an independent agency outside of the trade and industry department. The agency would deal with consumer complaints and investigations.

Source: Business Day

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