Compliance with the consumer protection act in South Africa: a case study of retail companies in KwaZulu-Natal

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Date
2013
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University of Zululand
Abstract
Owners of businesses had different perspectives (particularly retailers) when the Consumer Protection Act was implemented. The majority of them thought that it will pose a threat or risk to many businesses while others thought that it would have a negative impact on the functioning and operation of their businesses. Similarly, others thought it would bring more challenges and few opportunities for ongoing businesses. To maximize full protection of consumers in the market, the Consumer Protect Act imposes heavy administrative fines on improper business conduct, which would put a burden on the businesses. This study seek to find out about the compliance measures taken by the Retail Companies regarding the Consumer Protection Act. Retailers are targeted by disgruntled buyers because they are closer to the consumers than suppliers. Retailers are also the last link in the supply chain of goods and have closer relationship with consumers, hence there is a need to take necessary measures that would reduce or eliminate compliance risks, and that would serve as compliance measures within and beyond retail companies. An exploratory study was conducted through survey instruments in which data was gathered just once in time. Probability stratified random and non-probability purposive sampling was used. A sample of 20 respondents (Managers and Supervisors) was drawn and self-administered questionnaires were given to each respondent. The research findings indicated clearly that the majority of the Retail Companies were complying with the Consumer Protect Act, and they have compliance measures in place. Major findings have revealed that, the old consumer policies (instruments) used in retail companies were outdated and were not functioning in the interest or benefit of the consumer. As a result, they had to implement new instruments that enhanced the functioning of the CPA. Above all, the findings have also shown that, the implementation of the CPA did not have a negative impact on the businesses.
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A dissertation submitted in accordance with the requirements for the degree of Masters of Commerce in the Department of Business Management in the faculty of Commerce, Administration and Law at the University of Zululand, South Africa, 2013.
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