The CPA Part 3
As we get closer to the implementation date of the CPA, we are finding more and more people are still ignorant to its implications and impact on their businesses. In this post I want to focus on some of the marketing issues covered in the CPA, and how they will impact your existing marketing campaigns.
As far as marketing goes at the moment, the only restriction that I am aware of is the inability to use comparative marketing. The CPA outlines a few more restrictions for us in the act it is made clear that in no way may your marketing be misleading, fraudulent or deceptive. All prices, conditions need to be clearly displayed on the product.
If you are marketing items with the limited quantity or date, you need to make these goods or services available at a price to the extent of the expressed limits.
You cannot use negative option marketing, this means that you cannot send anybody an item intended to attract contracts that requires an unwilling customer to cancel the contract in order not to receive further goods or incur further costs.
Direct marketing with your clients is defined as one-on-one in person marketing. In this case the customer has the right to rescind any agreement that is entered into, and is not obliged to pay for any goods that are left with them as samples or try outs.
None direct marketing is defined as catalogue marketing either done telephonically all by post. It does exclude electronic marketing that is covered in the Electronic Communications and Transactions act. Catalogue marketing is quite descriptive in the CPA and there are a number of facts and items that are required to be displayed on the agreement of all transactions before it becomes legal.
The act also covers trade coupons, they prescribe the terms of the coupon and indicate exactly what needs to be displayed on any coupon that you may use. There is nothing here that I would see as new or out of the ordinary of commonsense marketing.
Loyalty programs are covered in section 35 of the act and discuss various legalities that cover a range of current loopholes in the system. But once again if you're running an honest organisation this should be not new to you, the simple fact of providing what you promise in terms of your loyalty program will keep you out of hot water.Lastly on this point, is there anybody from your company who installs or drops off a product or provides a service at a clients venue, they need to wear or display some form of identification of who they work for and who they are. It's time to get uniforms for your staff.
Once again we urge you if you and any doubt over this act and its impact on your business, please consult legal representatives or get hold of the act and read it yourself. It is now available under our resource library for you to download. Please also be aware of our workshop on Saturday the 18th September on the consumer protection act, if you are in Cape Town we urge you to join us for a discussion group on the topic. Registration can be done under the Academy tab on our website.
In : Entrepreneurship
Tags: consumer protection act
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