Online retailers are getting ready to implement the new Consumer Protection Act (CPA), which comes into effect in April.
However, there seems to be some confusion about what e-tailers' new responsibilities will be under the new legislation. The new law will better protect consumers and provide for new complaints mechanisms to be set up.
Wantitall founder Justin Drennan is not completely certain about how the Act will affect the company's business when it comes into effect, as parts of the law are vague.
He explains clarity will only happen when provisions in the Act are tested in a real-life situation. “No-one has tested it; people are unsure of what they can and can't do.”
Drennan says “we will have to roll with the punches. The company may have to revamp its terms and conditions, and the law could result in prices being adjusted upwards if many consumers take advantage of the various return provisions in the Act.”
“In many instances, we are already compliant in terms of key elements of the Consumer Protection Act, but are currently seeking legal advice on required adjustments in certain areas,” notes Gary Hadfield, CEO of loot.co.za.
Hadfield says the company still has work to do in some areas in order to comply with the new law. However, loot already complies with aspects such as offering a 21-day cooling-off period, and offers clear and easy opt-out mechanisms for customers, he says.
Kalahari.net says the new law is welcome, because it requires suppliers to treat consumers fairly. The e-tailer says it has always aimed to treat consumers fairly, so the way the company does business will not “change to any dramatic degree”.
In general, because Kalahari is an online retailer already governed by the Electronic Communications and Transactions Act, “the introduction of the CPA won't result in many dramatic changes in our retail business model”, the company says.
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