Business Law class - Read the following case study and answer ALL questions that follow:

CONSUMER PROTECTION IN SOUTH AFRICA

A few years ago, the government of South Africa enacted the Consumer Protection Act (CPA) which is a piece of legislation that seeks to protect consumers in their day-to-day dealings with retailers and other businesses. Heralded as the best consumer legislation in the world, the new Consumer Protection Act was received with mixed reactions by many businesses. As the world moves more and more towards the comprehensive protection of the consumer on the marketplace, South Africa has become one of the latest countries to join the consumer protection bandwagon by enacting legislation that supposedly transfers power from sellers to buyers. Consumer protection has thus emerged as a critical issue in South Africa. Heyns (2011) states that to keep abreast with global trends, it is imperative for South Africa to continuously revise its consumer protection legislation. He further notes that the continued revision of consumer protection legislation aims to ensure that the legislation is in line with the Consumer Bill of Rights which is the international law that protects the rights of consumers across the globe and South Africa is a signatory to this law. By protecting consumers, the government seeks to ensure that consumers get quality and safe products through fair business practices by all the players on the market After the enactment of the CPA in 2009, a number of businesses across many economic sectors in South Africa have been lobbying the government to amend or even repeal the CPA arguing that it is not good for business. Despite the South African consumer arguably emerging as the most protected consumer in the world because of the new law, many businesses however contend that this legislation will be detrimental to their operations, profitability and ultimately their sustainability According to the CPA, the responsibility for the provision of quality goods and services now rests with all members of the supply chain. In this case, a dissatisfied customer has the right to sue any member of the supply chain. In order to avoid a flood of consumer complaints and litigation, retailers and their supply chain partners are thus encouraged, if not compelled, to improve the quality of goods and services which they supply on the market. Retailers who meet or even exceed customers quality expectations can thus use that as a source of differentiation and competitive advantage in their retail marketing strategy. It is more than apparent that as much as the general perception on the market is that the CPA is detrimental to retail

businesses, the legislation has the potential of helping businesses to improve their operations, build and enhance their relationship with their customers, build their brand equity and ensure their long-term sustainability on the market.

Question 2 (20 Marks) As indicated above: Consumer protection has thus emerged as a critical issue in South Africa. Heyns (2011) states that in order to keep abreast with global trends, it is imperative for South Africa to continuously revise its consumer protection legislation. He further notes that the continued revision of consumer protection legislation aims to ensure that the legislation in line with the Consumer Bill of Rights which is the international law that protects the rights of consumers across the globe and South Africa is a signatory to this law. In light of the above, discuss whether the revising of our consumer protection legislation is required in order to keep abreast with global trends and further reach its intended purpose.