Turbulent Times for SA Businesses
The Consumer Protection Act (CPA) is in full swing and a great many businesses are under duress already, as South African citizens assert their well researched rights against sluggishly adapting companies. This combined with the recent implementation of the AARTO traffic fine system may mean doom to reeling SA businesses, especially those in the fleet management and motor industries.
As fleet managing companies attempt to hurriedly adapt to the new challenge imposed by AARTO and avert massive penalties, businesses across the country are now faced by the CPA as well. Many may well flounder under the pressure without professional guidance and CEO’s as well as management teams can expect to be tied up in educational seminars for quite some time to come.
Thus far, public relations officers for the motor industry have mainly claimed that they are happy to comply with the Act as it seems likely to increase brand loyalty. The fact of the matter, however, is that the motor industry, along with the cellular industry, are two of the top sectors of SA’s business community that are likely to suffer drastic losses unless they adapt quickly.
At least this seemed the case until it became clear to the public that the government hadn’t been tough enough on the cellular industry, leaving the industry the right to charge an unspecified “reasonable” penalty. This clause, naturally, leaves the majority of the power in the hands of the powerful cellular providers but they are by no means clear of all liability, as they have been in the past.
“I believe the focus will be on the cellular phone industry, particularly the hardware and services industries. Furthermore, the construction industry will also be a priority, focusing on home builders and residential property developers as well as motor vehicles sold to private individuals. There are incidents where dealers and service centres give the public a raw deal, especially when buying used motor vehicles,” stated technology law specialist firm Hahn & Hahn partner, Janusz Luterek.
It is clear that a turbulent time of swift adaptation or collapse lies ahead for South African businesses but both AARTO and the Consumer Protection Act are moves which the country has been in need of for quite some time.
Author : SASM
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