The Impact of the Consumer Protection Act on the Furniture Sector in South Africa

Abstract

In many of emerging economies like South Africa, the promotion of consumer rights to develop a consumer-oriented culture remains a very big challenge, due primarily to consumers who exhibit varying degrees of sophistication in terms of knowledge and skill concerning consumer protection. The implementation of the Consumer Protection Act No 68 of 2008, effected on the 1st of April 2011, was one means of establishing an environment to meet the promotion of consumer rights and protection of the consumer. This research was undertaken to establish the impact of the Consumer Protection Act on the Furniture Sector in South Africa due to its uniqueness in terms of a high concentration of furniture retailers and manufacturers, subjectivity and lack of sophistication in making a furniture purchasing decision across all demographics and the practise by retailers of trading furniture products as a commodity to sell credit. The research was based on a qualitative methodology, based on 14 respondents over 14 interview sessions with the data being analysed using thematic content analyses. The keys findings from the research were that stake holders within this sector have been engaging in unethical business activities that have compromised the consumer rights. The CPA has forced the sector to re-examine these activities which has resulted in the sector taking various initiatives from a compliance point of view and not in terms of the spirit of the Act. In addition the Act is not being effectively policed which has, to some extent, diluted its effectiveness. The key message to be taken away from this research is that, in an unsophisticated consumer market like South Africa, unethical business practices will be prevalent and it is for this reason that consumers’ rights need to be protected through appropriate social regulation like the CPA, which requires effective implementation, communication and policing.