A new campaign is warning SA consumers to be vigilant against ‘deals that are too good to be true’.<\/p>\n
The National Consumer Commission (NCC) and the National Credit Regulator (NCR) have joined forces to create awareness about ‘undesirable practices’ prevalent in the market, particularly over the festive season, including misleading advertisements.<\/p>\n
The regulators also stressed that there needs to be full disclosure of “Balloon payments” and “Buy Now Pay Later deals”.<\/p>\n
The campaign is divided into phases, with the first commencing this week, and the last commencing in February 2015.<\/p>\n
The NCR regulates, amongst others, advertisements for credit, goods and services purchased on credit.<\/p>\n
The NCC enforces the Consumer Protection Act which provides, amongst others, for consumers’ rights to fair, just and reasonable terms and conditions; disclosure and information; and fair and responsible marketing.<\/p>\n
The Consumer Protection Act requires suppliers to be fair when dealing with consumers and to explain terms and conditions to them using plain and understandable language.<\/p>\n
Advertisements that are deceptive, false or misleading raise serious concerns about the ethical behavior of manufacturers, sellers and credit providers, the regulators said.<\/p>\n
“A consumer has the right to know what he\/she is being offered or what he\/she is buying, and all necessary information must be made available to him\/her. Furthermore, the content of the advertisement must have full disclosure and be correct.”<\/p>\n
The two bodies warned against overspending in December. “As consumers, we all seem to have the same ritual on an annual basis: indulge in December, repent in January and promise to spend less next year.<\/p>\n
“Consumers are strongly advised to avoid the temptation to spend unwisely but rather to save for 2015.<\/p>\n
“The NCC and the NCR have a responsibility to empower consumers to make wise consumer decisions in their quest for goods and services. It is also important for consumers to understand that they have a responsibility to look after their individual credit profile and manage debt accordingly to avoid the debt trap” said the commissioner of the National Consumer Commission, Ebrahim Mohamed.<\/p>\n
The two regulatory bodies called on companies offering consumer credit such as payday lenders, debt management firms and brokers to do more to ensure their advertising does not mislead customers.<\/p>\n
“Consumers should be wary of misleading or deceptive advertisements such as ‘no credit checks required, blacklisted consumers welcome, free credit, cheap credit, affordable credit, low cost credit’ or any other wording that has substantially the same meaning,” said Nomsa Motshegare, CEO of the NCR.<\/p>\n
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