Attitudes, Awareness, and Use of the Consumer Protection Act Among Retail Furniture Consumers in the Umlazi Township, South Africa

Attitudes, Awareness, and Use of the Consumer Protection Act Among Retail Furniture Consumers in the Umlazi Township, South Africa

Pfano Mashau, Mathews Smangaliso Shange, Andrisha Beharry-Ramraj
DOI: 10.4018/978-1-6684-5853-2.ch004
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Abstract

The Consumer Protection Act (CPA) of 2008 was developed with the intention to protect consumers and promote fair dealings and responsible conduct of retailers in the marketplace. However, consumers continue to suffer in the marketplace due to defective products, unfair dealings, and poor service despite there being a CPA that was developed to protect their rights. Studies revealed a reduction in the number of registered complaints and an unchanged market environment for retail consumers pertaining to handling their consumer disputes. A quantitative study was conducted with a random sample of 95 retail furniture consumers who visited five furniture retail shops at Kwa Mnyandu Mall in the Umlazi township. Furniture retail consumers in Umlazi are aware of the CPA, however, they have reasonably less or no knowledge of the consumer rights contained in the CPA. Identified shortcomings in the use of the CPA to handle customer complaints is also explored. It was evident from the findings that retail consumers know that there is a CPA but they are unclear on how it is supposed to protect them when dissatisfied with a product.
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Introduction

It is the duty of the South African government to protect its citizens from being abused by businesses through activities that violate their rights. Various legal frameworks were set up in the past to try to enforce such protection. Consumer movements (CM) also performed key tasks in protecting consumer rights through activism and organising public protests. However, their efforts to assist consumers were limited to protest campaigns rather than to holding businesses accountable for supplying defective, unsafe and harmful products. Thus, the CPA was introduced in March 2011 and signed into law in April 2011. The CPA seeks to regulate all consumer related matters in the marketplace but consumers still experience difficulties in obtaining redress when faced with retailers’ unfair dealings. Nonetheless, the crucial point to consider is why consumers continue to be exploited by unscrupulous retailers despite there being a consumer law called the Consumer Protection Act. It is therefore important to examine whether the rights of ordinary consumers are protected by the CPA or not.

According to Keller and Swaminathan (2020), consumers purchase products to satisfy a need. Terblanche et al. (2016) expressed the view that consumers anticipate purchased products to be of excellent quality, in working order, able to satisfy their needs and exceed their expectations. Nonetheless, defective products are still being sold to consumers. Often, consumers do not detect product imperfections until the product has been used (Loubser & Reid, 2012). Defective goods should be returned to the retailer for either exchange or refund (Otto et al., 2014) but complaints of this nature irritate retailers who are reluctant to refund or exchange goods at the expense of their profits (Otto et al., 2014). According to De Stadler (2016), many consumers are not keen to complain to retailers as they think that nothing will be done to address their grievances. Unresolved consumer complaints may, at times, compel consumers to replace defective products at their own cost. This behaviour indirectly relieves the retailer of accountability. Such acts contribute to the infringement of consumer rights by retailers with no backlash from consumer protection legislation.

The aim of the chapter was therefore to examine the attitudes, awareness and the use of CPA by retail consumers in Umlazi township in South Africa. The chapter was imperative to ascertain whether the establishment of the CPA made consumer protection a reality or whether it became one of the government’s futile exercises.

Consumer Protection Act

The CPA was promulgated in March 2011 and signed into law in April 2011. Its aim was to protect consumer rights in the marketplace (Phora, 2017). According to Devi and Rao (2016), the intention of the Act was to protect consumers’ rights when they enter into business transactions with retailers or suppliers. The CPA is meant to encourage open and transparent business activities and enhance the ethical conduct of retailers in the market (Terblanche et al., 2016). Nevertheless, the plight of consumers in obtaining justice through retail complaint processes continues to exist in the retail sector, especially when a consumer has purchased a defective product. Magobo and Malunga (2015) claim that furniture retail consumers continue to struggle to obtain justice when the furniture they buy is defective.

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