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The Act generally applies across most industries to any supply of goods or services in the ordinary course of business between suppliers and consumers and also to franchise arrangements.

The Act has been passed by Parliament and signed into law and will become effective in two phases. The provisions dealing with the establishment of new consumer protection bodies and those authorising the Minister of Trade and Industry to make regulations, came into effect on the 24 April 2010. All other provisions will come into effect on 24 October 2010.

Who is a “supplier”?

A person, who markets, promotes or supplies goods or services. The supply of goods includes the sale, performance or provision of services or granting of access to any premises, event, or activity or facility in the ordinary course of business. It also extends to suppliers who cause the services to be performed or provided, without being involved in the actual performance of those services (e.g. agents).

Insurance Implementation

It is important to ensure that the limits under your Liability policy are adequate taking into account that these limits of indemnity include the costs of legal fees in defending any case brought against you.

Products liability insurance must be included to cover the exposure as a supplier.

We are able to provide extended liability cover at an affordable price with a limit of R20 000 000 on top of the R1 000 000 limit on your underlying policy. The underlying policy must include products liability. The extended liability cover provides wider cover as it is a Broad Form Liability wording and includes Difference in Conditions. Briefly, this means that if an event is excluded on the underlying policy this will be picked up by the extended liability subject to certain conditions.

Cover is not included under the extended liability policy for Product recall, Product Replacement or Performance Guarantees.

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