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SMEs News South Africa

Environment included in Consumer Protection Act

The Consumer Protection Act (CPA), which came into effect on 1 April 2011 includes the regulation of goods and services with actual or potential environmental and/or health impacts. The obligation to provide information in respect of potential or actual environmental or health impacts of goods or services is covered by CPA regulation.

"The CPA requires that the information which is accurate and not misleading or deceptive must be disclosed in plain language on product labels and in descriptions of goods (trade descriptions) and in the course of marketing goods and services, where appropriate," says Helen Dagut, a senior associate at Cliffe Dekker Hofmeyr business law firm.

The CPA also imposes the obligation to provide customers with safe, good quality goods. "Suppliers are required to alert consumers to potential risks associated with goods or services, which may include environmental or health risks. Where not labelled in terms of the requirements of other legislation, hazardous or "unsafe" goods (defined to include those which potentially present hazards or may be unsafe to persons or property) are required to meet specified packing standards. Suppliers or installers of hazardous or unsafe goods such as batteries or aerosols which have a risk of explosion, must supply information in respect of the hazards to the consumer," explains Dagut.

The CPA regulations also include the obligation on suppliers to not knowingly take advantage of the fact that a consumer is unable to protect his or her own interests because of, among other things, ignorance of the true facts relating to a product. "If a supplier behaves in this way it is considered "unconscionable" as that term is defined in the CPA. Relying on this provision, a group of South African consumers has laid a complaint with the Consumer Commissioner in respect of the treatment of pigs and chickens in factory farms, about which, they allege, the South African public is given insufficient information."

Disposal of electronic goods

Dagut says that obligations are also imposed in respect of the recovery and safe disposal of goods (for example electronic goods) which cannot be disposed of along with other wastes, which are likely to include those with the potential to harm the environment, for the example through leaching of toxic substances.

"Specifically, suppliers must accept their return (including of their parts/remnants) from the consumer, without charging the consumer, irrespective of whether the supplier supplied the particular returned object to that particular consumer. Producers, importers and distributors of such goods must accept their return from the suppliers. These provisions are consistent with those requiring extended producer responsibility under the National Environmental Management: Waste Act," she explains.

The producer, importer, distributor or retailer of goods is liable for harm, including damage to property, caused by the supply of unsafe goods, hazards in any goods or inadequate instructions or warnings provided to the consumer in respect of hazards arising from the goods, irrespective of whether the harm resulted from any negligence on the producer, importer, distributor or retailer. Claims for damages under this section prescribe after three years in specified circumstances.

"The promulgation of the CPA therefore results in an additional layer of obligations in respect of goods or services with potential or actual hazards or risks to consumers and/or the environment being imposed, which are required to be complied with in addition to other obligations for environmental protection prescribed under environmental laws. Consumers may enforce their rights, and have begun to do so, where producers and suppliers are failing to do so," Dagut adds.

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