Consumers rights and challenges of the socio-economically disadvantaged and the implications of the Consumer Protection Act 68 of 2008

Abstract

South Africa is a country that is classified as having high levels of poverty and illiteracy. This is evident particularly in the consumer market, which consists of both the ordinary consumers, who are generally literate, and vulnerable consumers, who mostly have low levels of literacy or are illiterate and come from disadvantaged communities. Such vulnerable consumers face challenges when transacting with suppliers. The need to develop common law principles or any other consumer protection legislation, to protect, not only average consumers, but also vulnerable consumers, was of particular concern. Hence, the Consumer Protection Act (CPA) 68 of 2008 was promulgated, with the aims of promoting a fair, accessible and sustainable marketplace for consumer products and services and to establish national norms and standards relating to consumer protection. However, experience has shown that, since its implementation some of the promises in the Act have not become a reality for many consumers, especially those who face socio-economic disadvantages. Such consumers include those with low income, low levels of education, and those who are illiterate. This study aims to investigate the consumer challenges and rights of the socioeconomically disadvantaged persons as vulnerable consumers, as well as the role of the CPA in protecting them and addressing such consumer challenges. A quantitative research design was adopted together with probability sampling. A questionnaire was the primary tool used to gather data from consumers that reside at Bhekulwandle, a township in the Illovo area, in KwaZulu Natal province. The findings from the study revealed that, even though consumers are afforded legislative protection in the consumer market, the effectiveness of such legislation has some gaps when viewed from the vulnerable consumer perspective. Consumers facing socio-economic disadvantage are still faced with challenges when it comes to understanding commercial contracts, primarily due to the language used in standard form contracts and their ignorance as to the processes to follow when their rights have been infringed, and their rights as consumers. The government, suppliers and consumer bodies have an onerous responsibility in ensuring that all consumers, especially those from a disadvantaged background, are equally protected in the consumer market. This can be achieved by ensuring that existing legislation is enforced and business should be compelled to comply and give particular recognition to the vulnerable consumers.