The Consumer Protection Act is in effect as of 1 April 2011 and is expected to change the South African business landscape including the tourism and travel industry. We have filtered out some of the more relevant points for our readers and clients in the travel industry.
Government has set out “To promote a fair, accessible and sustainable marketplace for consumer products…”
The regulations are knit around these 9 fundamental consumer rights :
Government is laying down new rules with the CPA
1. Right to Equality in the Consumer Market and Protection Against Discriminatory Marketing Practices
2. Right to Privacy
3. Right to Choose
4. Right to Disclosure of Information
5. Right to Fair and Responsible Marketing
6. Right to Fair and Honest Dealing
7. Right to Fair, Just and Reasonable Terms and Conditions
8. Right to Fair Value, Good Quality and Safety
9. Right to Accountability from Suppliers
The extent and exact interpretation of the CPA remain to be seen, but one thing is certain: if your business is out of line you need to act now.
Important New Rules for the Tourism Industry
Establishment cancellations and double bookings : If you cancel a booking with a guest, she can claim accommodation of equal or better standard from you and you will have to pay the difference in price. The only exceptions from this rule are incidents beyond your control preventing you from providing accommodation.
FYI: Double bookings by airlines are prevented by the CPA as well.
Descriptions of facilities : Descriptions of the services and facilities you offer need to be accurate. So if the picture in the breakfast menu shows three rashers of bacon on the plate or your room description promises a king size bed that’s what your guests should get.
Prices must be as advertised : The prices you advertise can now be claimed by consumers. So if you have last season’s prices on your website or in your brochure you should update them quickly.
Cancellation policy : Consumers have the right to cancel advance reservations, bookings or orders at any time. However the supplier is entitled to take an advanced deposit or impose a reasonable charge for the cancellation. Your cancellation policy needs to be clear and understandable to the average consumer.
Expired contracts : The consumer needs to be informed of an expiring contract not more than 80 business days, but no less than 40 business days before the expiry date. If the contract is not renewed it continues on a month-to-month basis. Consumers can cancel contracts at any time with 20 business days notice. Fixed term agreements are no longer than 24 months in duration.
Records : Records of bookings, invoices, quotes and the like need to be kept for at least 5 years.
Disclaimers : The consumer’s rights cannot be affected by accepting your business offer.
Guest safety : Establishments will be responsible for the guest’s safety. Guests have to be warned about any unusual risks or hazards.
Staff : You are responsible if any of your employees act in disagreement with the CPA, exempting criminal acts.
Marketing
Email and SMS marketing : Every form of direct marketing needs an unsubscribe or opt out option. If someone opts out that is where your direct marketing ends. Consumers will also have the option to join a
National Opt-Out Registry and you will need to cross check your databases with this registry.
Referral marketing : Referrals are still legal, but they can no longer be awarded with benefits. You can ask your clients to refer you, but you are not allowed to offer anything in return.
Cooling off period: Any goods or services purchased as an effect of direct marketing give the consumer the right to a cooling off period of 5 business days in which the transaction can be cancelled without a reason.
West Bengal Office
West Bengal State Consumer Disputes Redressal Commission,
Bhabani Bhavan,
(Ground Floor),
31, Belvedere Road, Alipore,
Kolkata – 700 027
Phone: 033 24790378 / 24799871-74
Fax: 24794916
E-mail: wb-sforum@nic.in
Head Office Contact
Phone: 011 23712459, 23712109 (Delhi)
Minister in Charge Consumer Forum , West Bengal
Consumer Affairs
Important Links:
Sri Sadhan Pande 2252-7483 http://www.telegraphindia.com/1090817/jsp/atleisure/story_11368821.jsp http://www.consumercourtforum.in/ http://www.chatpatikhabar.com/west-bengal/index.php
CONSUMER PROTECTION ACT, 1986
[Act No. 68 of Year 1986, dated 24th. December, 1986]
CONSUMER PROTECTION ACT, 1986
1. Short title, extent, commencement and applications
2. Definitions
3. Act not in derogation of any other law
4. The Central Consumer Protection Council
2252-0153
5. Procedure for meetings of the Central Council
6. Objects of the Central Council
7. The State Consumer Protection Councils
8. Objects of the State Council
9. Establishment of Consumer Disputes Redressal Agencies
10. Composition of the District Forum
11. Jurisdiction of the District Forum
1 [12. Manner in which complaint shall be made
13. Procedure on receipt of complaint
14. Finding of the District Forum
15. Appeal
16. Composition of the State Commission
17. Jurisdiction of the State Commission
18. Procedure applicable to State Commission
18A. Vacancy in the office of the President
19. Appeals
20. Composition of the National Commission
21. Jurisdiction of the National Commission
22. Power of and procedure applicable to the National Commission
23. Appeal
24. Finality of order
24A. Limitation period
24B. Administrative control
25. Enforcement of orders by the Forum, the State Commission or the National Commission
26. Dismissal of frivolous or vexatious complaints
27. Penalties
28. Protection of action taken in good faith
29. Power to remove difficulties
29A. Vacancies or defects in appointment not to invalidate orders
30. Power to make rules
31. Laying of rules
Travel, tourism & the Consumer Protection Act
The Consumer Protection Act 1987 sets out the rules for retailers on pricing, and these apply to all retailers.
Pricing is mandatory for all providers of goods, whether they be in a shop or on the internet. The prices must be clearly displayed either on the goods themselves or on the shelf that they are on; internet retailed goods must have the price clearly shown. The price has to include VAT, anything that is compulsory as part of the purchase and any variations that could occur in price. Everything that is included in the price must also be clearly stated and, if it is possible to make a mistake over what is included in the price, display that too. For instance, if children are accorded something for free along with the price for the main good and adults are not, state that adults must pay extra.
There are certain exceptions to this pricing rule, which are:
Goods that are part of a service, e.g. the food included in bed and breakfast
Jewellery, watches etc. that are over £3000 and displayed in a shop window
Sales at auction
Sales of works of art and antiques
It is a criminal offence under the Consumer Protection Act 1987 to mislead customers about prices, even if the prices have changed and the customer reads an old price. Therefore, all price changes must be reflected by the price on display. Any catalogues, brochures or other literature that contains prices should be dated to avoid misleading customers. Distance selling over the internet or mail order must also include any prices for postage and packaging or surcharges that may be applicable.
Mistakes in pricing by a retailer do not have to be legally honoured by them; the contract only takes place at the point of sale or booking and so it is only after this that a retailer must honour a mistake in price. Regular mistaken pricing will result in the business being inspected by Trading Standards to ensure that they are not intentionally misleading customers.
http://india.gov.in/topics/travel-tourism http://tourism.gov.in/writereaddata/Uploaded/Tender/051720121254577.pdf www.
tourism legal.com.au/ consumer _claims.htm