BUSINESS owners will be prohibited by law from sending spam email or SMSs without the explicit permission of clients and customers, if the provisions of the new Consumer Protection Bill are put into place.

The ban on spam SMSs and email is is just one of a number of marketing practices that the new Consumer Protection Bill, which aims to protect consumer rights, aims to clamp down on.

Business owners could face fines of up to R1 million or 10% of their turnover if found guilty of any of the prohibited practices proposed by the bill which is expected to passed into law next year.

Some of the outlawed practices include:

• Not having a refund policy. All businesses will also have to introduce a refund policy where customers will be able to claim a refund within 10 days of purchasing the product or service. This is expected to require additional staff resources further resulting in high costs for business owners.

• Not clearing stating how long promotions will be run for.

• The banning of practices informing a customer that a prize has been won, for none existent competitions. For example, business owners who send out letters informing customers that they have won a prize and will be entered into a lucky draw, but only once a certain amount is first deposited into the business's bank account.

• Producing dangerous products. The National Consumer Commission also has the authority to recall products believed to be hazardous and this recall is set to cost business owners even more money.

• Not having a cancellation fee in place. Consumers will also be able to cancel bookings and reservations and will only be liable to pay a cancellation fee or if the cancellation made sparing the business owner enough time to get another reservation there will may not cancellation fee.

Explains Alison Lee, Ceo of Corporate Law: “ A sole proprietor who is a plumber, for example, will need to give a consumer a proper quotation which includes the cost of the service and the business's name before commencing work.

“The cost of the service may not be more than is stipulated on the quotation and if the business owner suspects costs will increase he must get the permission of the consumer before continuing work.”


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