The Consumer Protection Act (CPA) is due to be introduced on 29 April 2010. The act is designed to provide consumers with a measure of protection against unscrupulous suppliers, and help to ensure delivery of fair products or services at a fair price, says business solutions provider Spescom.
Non-compliance with the provisions laid out in the act can mean a hefty fine, a jail sentence or both, explains the company. The CPA is applicable to practically every transaction between a supplier and the consumer (or business), even in small and micro enterprises.
The CPA highlights an important need for companies to keep accurate records, states Spescom. This is no easy task in the modern business environment, the company adds, as a large volume of telephone transactions now take place over fixed lines as well as mobile phones.
Accurate record management is also no longer as simple as filing a document or even saving an electronic copy, with many small businesses relying solely on mobile phones for telephonic communication, says Spescom.
Curbing complacency
Viv Crone, CTO of Spescom, says the company and its various divisions develop technology that enables and facilitates compliance and good corporate governance. “Our Libra Voice Recorder has been around for several years, and with the emergence of more mobile transactions we developed Libra Mobile to address the need for recording these transactions," she states.
Terry Booysen, CEO of CGF Research Institute, a local firm focusing on compliance, risk and corporate governance, says: "Having the right technology in place is crucial in mitigating risk and limiting the company and its officer's liability.
“The CPA means that businesses can no longer afford to be complacent, or get away with shoddy business practices, as it gives consumers the power to take suppliers to court, where the judge may well impose heavy fines or even hand out prison sentences."
According to Spescom, the best way to deal with the implications of these acts is for businesses to arm themselves with the right knowledge and technology to ensure compliance, risk management and good corporate governance.
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