The Act passed in December 2012 aims to “provide for the protection of the consumer, prevent unfair trade practices in consumer transactions and to provide for matters connected with and incidental thereto”.
The following provides a very brief summary of the legislation, it is not intended to be a comprehensive coverage of the legislation. A full copy can be obtained from: http://www.parliament.go.ke/plone/statutory-documents/consumer-protection-act-no-46-of-2012
- Goods or services should be of a reasonable merchantable quality
- The seller warrants that they are of a reasonable merchantable quality – and can be held to account for this.
- No more than 10% can be added on to a price estimate unless agreed between the supplier and the consumer.
- No supplier can charge for goods or services which the consumer did not request even if those goods or services have been used by the consumer (exceptions apply)
- No advertising on internet gaming sites
- False, misleading or deceptive representation of products and services should not be made.
- Price should not grossly exceed the price of similar goods on the market
- When and under what circumstances a consumer can rescind an agreement, this includes clauses relating to late delivery of goods and services.
The following services are also dealt with specifically within the legislation
- “Personal development services” which include: health and fitness, modeling and talent, sports and other physical activities. This section of the legislation deals with length and termination of agreements, fees and charges, payments plans, limits, cancellations and access to facilities needed to carry out the activity.
- Loan and credit services. Including: access to loans, requirements for written agreements, record keeping, e.g. credit reference, cancelation and liability.
- Repairs to motor vehicles and other goods. Including: provision of estimates, estimate fees, authorization, return of parts, invoice, warranty, equitable price regardless is payment is via cash or through an insurance company.
- Credit Agreements. Including: who should extend loans, when charges should be initiated, unauthorized charges, requirement for statements, errors, insurance, termination, deferrals, defaults, early payment, disclosure, assignees, indemnity, trade ins.
- Leasing. Including: length of agreement, disclosure statements, compensation and maximum liability.
- Airlines. Including: provision of food and accommodation where flights are delayed.
Finally the Act requires the establishment of the Consumer Protection and Advisory Committee.
For more information on how we think this will affect the way business is conducted in Kenya and how the law will impact on a companies marketing strategy please look out for our future blogs.
Sam Crosthwaite – Client Service Manager
