One of the most controversial provisions of the CPA relates to the liability of suppliers. If someone supplies goods, and those goods cause harm to the consumer, the supplier will be liable for the harm. This will be the case even if the supplier were not negligent. Further, all parties in the supply chain can be held liable by the consumer. This includes the manufacturer, the wholesaler and the business that sells the goods to the public.
Warranties cannot be excluded
Suppliers must also take note of the standard warranties that will apply to goods supplied to consumers. These warranties cannot be excluded. When the CPA is in force, consumers will have the right to receive goods that:
The CPA also deals with the marketing of goods. Consumers will have the right to restrict unwanted direct marketing (this will include promotional emails and telesales). Further, if a consumer bought goods as a result of direct marketing, the consumer will be entitled to cancel the sale of those goods within a specified period.
A supplier will have to ensure that its packaging and/or labelling complies with the CPA's requirements. The minister of trade and industry will prescribe certain information or descriptions that must be applied to specific goods. In addition, the CPA has strict requirements relating to the disclosure of the price of goods. If goods are displayed for sale, the supplier must also display the price of those goods at the same time.
Rules regarding promotional competitions
When it comes to promotional competitions, suppliers will in future have to ensure that they follow the provisions of the CPA in this regard. For instance, the CPA contains certain requirements regarding the rules of promotional competitions. It also regulates the consideration payable by consumers for entering into competitions.
Another important aspect of the CPA relates to business names. In future, a supplier will not be able to trade under a name, unless:
These issues are just some of those that are dealt with in the CPA. It is important for all businesses to make sure that they are ready for the CPA. They will have to take steps to mitigate their risks against the CPA's strict liability provisions. In addition, the wording of standard documentation should be checked for compliance with the act.