Enforcement and Effectiveness of Consumer Law in South Africa

Abstract

The chapter first analyses the principal legal and policy framework for the enforcement of consumer law in South Africa. The country does not have one unified law on consumer protection, but consumer protection rules are found within many laws as well as the uncodified common law. The broadest legislation is the Consumer Protection Act (‘CPA’), which came into force in 2011. The important role of consumer policy and strategic plans within the framework is also highlighted. Specialised enforcement agencies include national regulators such as the National Consumer Commission and National Credit Regulator, provincial consumer protection authorities and sectoral enforcement agencies created by legislation. Statistics on enforcement by these agencies are set out. Alternative Dispute Resolution (‘ADR’) forms part of consumer redress and enforcement in South Africa, mostly in the form of dispute resolution by ombuds. Statistics on enforcement by these ombuds are also set out. The courts and National Consumer Tribunal play a role in enforcing consumer rights. It is a pity that the CPA provides that consumers may only institute action in the accessible small claims courts if all other avenues available under national legislation have been exhausted. The few instances where consumer organisations have played a role in enforcement are discussed. Private regulation by industry plays an important role in various sectors. Sanctions for breach of consumer protection law are also analysed. External relations and cooperation between the State, enforcers and consumer organisations are discussed. The chapter concludes with a critical evaluation of the effectiveness of the available enforcement mechanisms. Inter alia it concludes that more needs to be done to tailor the system to the needs of especially low-income consumers, the majority of South African consumers.