Tips for online suppliers on how to ensure compliance with the CPA

08 July 2022
Accounting
South African Accounting Academy

All online suppliers of goods and services are urged to ensure that they comply with the CPA by ensuring the following;

Displaying correct pricing. Where there is an error, it must be communicated to consumers and be corrected within a reasonable time, otherwise consumers are entitled to purchase at the displayed price;
Providing a detailed description of the goods or services to avoid consumers ordering goods that are not fit for purpose;
Displaying delivery times and communicating delays to consumers;
Disclosing key terms and conditions, including return and refunds timeframes and channels;
Displaying contact details and escalation processes if consumers have any queries;
Avoiding bait marketing or overselling by ensuring that there is sufficient stock or indicating stock limitations in all advertisements where applicable;
Avoid accepting monies from consumers if there is no stock or capacity to deliver the goods or services at the agreed time and date;
Disclosing any other additional costs that the consumer would incur, including any delivery costs or cancellation penalties; and
Providing a system for consumers to track their deliveries.

Click here to access the tips as part of the CGSO’s LinkedIn posts:

https://www.linkedin.com/company/consumer-goods-services-ombudsman/posts/?feedView=all

Relevance to Auditors, Independent Reviewers & Accountants:

The Consumer Protection Act is yet another piece of legislation that your clients (as suppliers of goods and services) must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
As a consumer, you also need be aware of your rights and responsibilities in terms of the Consumer Protection Act – and what you should expect from online suppliers – especially in respect of online shopping.

Relevance to Your clients:

A supplier of relevant goods and services has a duty to comply with the Consumer Protection Act, otherwise they could be held liable.
As an individual, a consumer has a duty to be aware of his/her rights and responsibilities in terms of the Consumer Protection Act – especially in respect of online shopping.

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