THE NEW CONSUMER

PROTECTION ACT: NEW RISKS

FOR BUSINESS
A BRIEF OVERVIEW OF THE NEW ACT
OBJECTIVES OF THE PRESENTATION

• Introduction and Overview of the Act

• Purpose of the Act
• When does the CPA apply?
• Who is a Consumer?
• What are consumer rights?
• The Consumer Protection Commission
• Penalties against anti-consumer practices
• The CPA and Accountants
INTRODUCTION AND OVERVIEW OF THE ACT

• The Act became operational on the 10th of December 2019

• Preamble of the Act – Section 2:
The primary objective of the Consumer Protection Act (CPA) is to
protect the consumer of goods and services by ensuring a fair,
efficient, sustainable and transparent market place for consumers
and business through the establishment of the Consumer Protection
Commission and…….
WHAT IS THE PURPOSE OF THE ACT?

• Protect the consumer of goods and services by ensuring a fair,

efficient, sustainable and transparent market place….
• Establish national norms and standards to ensure consumer
protection;
• Make provision for improved standards of consumer
information, to prohibit certain unfair marketing and business
practices;
• Provide alternative dispute resolution
• Promote a consistent legislative and enforcement framework,
related to consumer transactions and agreements;
• Establish the Consumer Protection Commission
WHEN DOES THE ACT APPLY?

• Every transaction occurring within Zimbabwe;

• Promotion or supply of any goods and services occurring within
Zimbabwe; and
• Goods or services that are supplied in Zimbabwe

• DOES NOT APPLY TO:

• 1. Goods and services supplied to the State
• 2. Employment contracts
• 3. Sale of immoveable property
WHO IS A CONSUMER?

• Section 2
• A consumer is a person to whom goods or services are marketed OR
who has entered into transactions with suppliers OR users of
particular goods or recipients/beneficiaries of services
• Examples
• Lawyer – client service agreement
• Accountant – client service agreement
• A purchase agreement for laptops etc
WHAT ARE CONSUMER RIGHTS?

• The CPA outlines key consumer rights, of which all Zimbabwean

consumers should be aware
• The right to consumer education and awareness
• Right to fair value, good quality and safety
• The right to cancel advance reservation, bookings or orders.
• The right to delivery of goods and services.
• Right to information
• The right to be heard, representations and redress.
• The right to fair and honest dealing.
ENFORCEMENT OF CONSUMER RIGHTS

• The Act makes provision for enforcement of consumer rights in

addition to recourse to courts of law, both civil and criminal.
• These include a Consumer Protection Commission (CPC), Consumer
Protection Advocacy Groups, provision for other consumer
protection organizations and consumer protection officers.
• The CPA essentially allows any person who has failed to have their
dispute resolved through alternative resolutions to approach the
CPC in the prescribed manner and form, concerning the dispute.
THE FUNCTIONS OF THE CONSUMER PROTECTION
COMMISSION

• The functions of the CPC will be essentially to promote, enforce and

protect consumer rights in the country.
• The CPC also protects consumers from unconscionable,
unreasonable, unjust or otherwise improper trade practices; as well
as deceptive, misleading, unfair or fraudulent conduct; promote fair
business practices;
• It co-ordinate and networks consumer activities and liaises with
consumer organizations and the competent authorities and
agencies locally and outside Zimbabwe to protect consumer
interests.
• Provide consistent, accessible and efficient system of consensual
resolution of disputes and redress arising from consumer transactions
PENALTIES AGAINST ANTI-CONSUMER PRACTICES

• Many consumers have been complaining to the government or the

CCZ of being unfairly treated by businesses.
• The new CPA, under sections 78 to 81, provides for penalties against
anti-consumer practices. As such, the provisions of these sections
make it an offence for any business or person not to comply with the
CPC or court.
THE ADVENT OF E-COMMERCE

• Technological advancement has paved way for a new global

phenomenon called electronic commerce. The convergence of
internet technology and ICT has seen consumers increasingly
transacting electronically.
• Part IV of the CPA deals with electronic transactions
• Under this section consumer must have full information to the
products being sold or hired online and the supplier of goods and
services must protect personal information of online consumers
• The Act further introduces cooling-off periods for electronic
transactions which give consumers the ability to change their mind
on transacting with a supplier without any penalties
ACCOUNTANTS AND THE CPA

• Accountants consume and supply goods and services everyday in

their personal capacity or as part of their
organisations/communities.
• Accountants can now use the class action route to sue its suppliers,
including us lawyers, for unfair, unreasonable and bad quality
products and services,
• Clients are now also armed with additional protection provided by
the CPA against unfair, bad value and bad quality
decisions/services given by everyone in this room.
• This industry also now has a statutory obligation to inform its clients
about any unnatural risks associated with the products and services
it provides.
(Cont.)

• By virtue of the fact that we supply goods and services, it is assumed

that we warrant, by law, that whatever we supply is of good quality.
• Accountants now have a statutory responsibility to be fair,
transparent, honest and efficient in all its dealings or face criminal or
financial sanction.
munyuru@mmmlawfirm.co.zw

0772 696 366