CONSUMER PROTECTIONS ACT, 2002

The Consumer Protection Act, 2002 came into effect on July 30, 2005. Under the Act there are enhanced consumer rights.

Please note: the Act only applies to transactions that took place after July 30, 2005.

A consumer is somebody that purchases goods for personal, family or household purposes. The Act does not protect “consumers” that purchase goods for business purposes.

The different types of consumer agreements are:

Future performance agreement: Agreement where delivery of goods, performance of service or payment in full is not made when the parties enter the agreement

Time share agreement: Agreement where the consumer has the right to use property on a periodic basis that is shared among other members of the plan, or is provided with discounts or benefits for the future provision of transportation, accommodation or other travel-related goods/services

Personal development services agreement: Agreement for services provided for health, fitness or diet or modeling and talent, martial arts, sports or dance; as well as the facilities provided for the instruction for these services

Internet agreement: Agreement that is formed by text-based Internet communications

Direct agreement: Agreement negotiated or concluded in person at a place other than at the seller’s/ lender’s place of business, or at a market place, auction, fair or exhibition

Remote agreement: Agreement entered into when the consumer is not present together with the seller/ lender

Consumer rights have been extended in the following ways:

- Sellers cannot sign away their rights under the Act regardless of what is stated in the agreement or waiver

- Sellers/ lenders are deemed to warrant that the goods and services are of reasonable acceptable quality

- Sellers cannot charge more than 10% of the original estimate

- All disclosure must be clear, comprehensible and prominent.

- Mandatory dispute resolution will not be enforceable on the consumer

The Consumer Protection Act prohibits unfair practices such as making false, misleading or deceptive representations. Some of the main types are:

- Claiming that a good or service has sponsorship, characteristics or benefits that it does not

- Claiming price advantage or discount, when none exists

- Misrepresenting a representative’s authority or negotiate final sale or agreement

- Making false or misleading representations, or using exaggeration or ambiguity about material fact, with intent to deceive