SERVICE MANAGER Consumer Protection Act

Transcription

1 SERVICE MANAGER Customer Service Skills SERVICE MANAGER Consumer Protection Act INDUCTION

2 Objectives This course is designed to give a high level overview of the Consumer Protect Act to ensure service managers understand the processes that needs to be followed, and avoid unnecessary risk for the Dealership. Objectives Inthiscourseyouwill: GetanoverviewoftheAct Identifythemainareasofriskatthedealershipinthe Workshop areas. Understand what processes and procedures need to beinplace. Enjoy the learning experience!

3 The Consumer Protection Act The Act impacts the service manager s work. Understanding the Act and following due procedures will enable you to reduce risk to your dealership. We will introduce the Act, then discuss how it will impact you, the fundamental consumer rights and the your procedures to reduce risk, Introduction to Act

4 Overview & Introduction to the Act With the introduction of the Consumer Protection Act, the nature of doing business in the marketplace changed in a number of areas. Introduction to Act The Consumer Protection Act, signed into law on 29 th April 2009, places obligations and prohibitions on suppliers and has a significant impact on the way business is conducted in South Africa. The primary purpose of the Act is to prevent exploitation or harm to consumers. In this e-learning module wewill give an overview of the Act on the areas that impact the service manager.

5 Aim & Application of the Act The aim of the Act was simply to provide the appropriate service to a consumer during and after a service and to ensure that your service has met the customer s expectations in all aspects, thus fulfillingtheaimoftheact. Application of the Act If this service is in any way not to the customer s satisfaction, the customer now has certain rights that could impact your dealership.

6 Aim & Application of the Act Many customers go into a dealership with concerns that they won t be treated with fairness and respect. Keeping promises when customers have made a booking for a service or repairs and an explanation of repair work done will build trust with the customer. These are key elements in showing that a service manager is professional and follows service procedures. Consumers can hold dealerships liable if they do not deliver on their promises, or give customers the service promised. In other words, our customers today are more savvy and more informed. Application of the Act

7 Aim & Application of the Act The CPA regulates the activities of suppliers, creating rights for consumers, covering goods and services delivered and rendered in the ordinary course of business and applies to virtually every entity supplying goods and services in South Africa. Application of the Act It applies to all transactions suppliers enter into with consumers; The promotion of goods and services. Goods and services themselves. Goods which form the subject of an exempted transaction.

8 Aims of the Act The CPA aims to give effect to internationally recognised consumer rights in the following instances; Promote fair trading. Provide fundamental consumer rights, and Prohibits unfair business practices. Aims of the Act Promote fair trading Consistent enforcement framework relating to consumer transactions and agreements Responsible consumer behaviour; consumer activism partnership between the state and civil society Fair, accessible marketplace for consumer products and services

9 Aims of the Act The CPA aims to give effect to internationally recognised consumer rights in the following instances; Promote fair trading. Provide fundamental consumer rights, and Prohibits unfair business practices. Aims of the Act Provide fundamental consumer rights Co-ordinating of laws relating to the protection of consumers Fundamental consumer rights to equality; privacy; choice; honest dealings; fair value Redress & responsible practises & establishment of the National Consumer Commission

10 Aims of the Act The CPA aims to give effect to internationally recognised consumer rights in the following instances; Promote fair trading. Provide fundamental consumer rights, and Prohibits unfair business practices. Aims of the Act Prohibits unfair business practises Unfair marketing and business practises Unacceptable behaviour by businesses Misleading marketing practices and Fraudulent schemes Next we discuss how the Act give consumers fundamental rights!

11 Fundamental Consumer Rights Fundamental Consumer Rights Consumers now have the right to demand quality service!

12 Fundamental Consumer Rights Fundamental Consumer Rights We need to be far more aware of how our processes and behaviours comply with the Consumer Protection Act (CPA) when dealing with a customer.

13 Fundamental Consumer Rights Whydoweneedtobeaware? Consumers now have the right to demand quality service and full disclosure of price of goods and services, as well as protection against misleading, false or deceptive representations. Fundamental Consumer Rights The rules of the game have been altered from letthebuyerbeware to let the seller beware! As the name implies, the Consumer is nowprotected against a lot of unsavoury business practices. Consumers are more empowered to challenge business than ever before. This means that your customers can hold you and your dealership liable if you do not deliver on your promises, or engage in behaviour that the Consumer finds offensive.

14 Fundamental Consumer Rights Whydoweneedtobeawarecontinue Fundamental Consumer Rights Fines, consumer complaints and even legal action taken by consumers will be a minor impact when compared to the potential impact on your dealership s reputation. Any negative publicity, whether true or not, may impair public confidence in your dealership. This may in turn result in costly litigation, or may lead to a decline in your customer base, with the resultant loss of revenue. Can you afford NOT to pay attention to this Act and its far reaching implications?

15 Customer Protection Act s Impact on your Business We will discuss the risks in the workflow process and the importance of the service processes in line with the CPA! Fix right first time? Fundamental Consumer Rights Gettingitrightthefirsttimeisnolongerandoption,itisamust. Whatmakestheriskontheservicedepartmentsomuchworse? It is often the service department that must fulfil promises and manage consumer expectations initiated by other departments and even other business entities. To manage this risk, staff must understand the importance of policy, procedure and process pertaining to the detail, planning and execution from the time the consumer books the appointment right up until the vehicle is delivered back after the repair.

16 Customer Protection Act s Impact on your Business What does the customer expect from the service department? Fundamental Consumer Rights Consumers expect that all repairs and maintenance work performed on their vehicle will be completed correctly, in a reasonable time, delivered when promised and that they will not have to bring a vehicle back for repeat repair work. They also expect that the service department will advise them of any additional work needed to maintain their vehicle in a proper operating condition. The CPA now makes the above consumer expectation a mandatory requirement as a best business practice. Dealers who do not meet these standards are exposed to regulatory, financial and reputational risk.

17 Fundamental Consumer Rights Pleasetakenote,youneedtobeaware. The wide reach of the provisions of the CPA means that the possibility of frequent offences is high where repairs and/or maintenance work is carried out on consumers vehicles! You control the processes, make sure your customers are completely satisfied. Fundamental Consumer Rights

18 Following Procedures Risks and Challenges in Specific Areas The processes and procedures as laid down by Suzuki South Africa needs to be followed to ensure you do not expose your dealership to any risk. We have discussed the Act, the aims of the Act and fundamental consumer rights. We will now look at the risks you could possibly face when performing your duties. Procedural Risks & Challenges

19 Pre-booking Procedure Risks and Challenges Risks and Challenges Pre-authorisation of repair or maintenance services When a dealership repairs or service a vehicle you must not charge a consumer for supply of any goods or services unless: you have given the consumer an estimate and the consumer has authorised the work; or the consumer pre-authorised the work and any charges up to a maximum amount and the amount charged does not exceed the maximum amount authorised by the consumer.

20 Pre-booking Procedure When is a charge deemed unreasonable? A charge is unreasonable if it exceeds a fair amount in the circumstances, having regard to the general practice of the relevant industry, i.e., the flat rate as agreed in the motor vehicle industry as an example. Risks and Challenges

21 Pre-booking Procedure Risks and Challenges Consumer's right to cancel an advance reservation, booking or order. Procedural Risks & Challenges A consumer has the right to cancel any advance booking, reservation or order for any goods or services to be supplied.

22 Ordering Parts Risks and Challenges The parts department supports the service department and has the following responsibilities, however the service manager checks to ensure parts availability to service or repair a customer s vehicle. Parts can be picked prior to the vehicle arriving at the dealership. Shouldapartnotbeavailabletheconsumerneedstobeinformed and a service or repair rescheduled. Procedural Risks & Challenges Receive Order Confirm Order Manage consumer expectation Sales Administration Inventory Control Issue Orders Control Delivery and Returns Pick Parts Deliveries Collection of Consumer Returns Logistics Invoicing Debtors Refunds Accounting

23 On booking in the vehicle, a dealership must not: offer to supply or enter into an agreement to supply, any goods or services at a price that is unfair, unreasonable or unjust; or on terms that are unfair, unreasonable or unjust. This implies that the service contract must have fair terms and conditions that conforms with the Act and all services or repairs charged must be fair and reasonable. Procedural Risks & Challenges Booking in the Vehicle Risks and Challenges

24 Service or Repair of the Vehicle Risks and Challenges Thisprocesscouldbeariskif; Procedural Risks & Challenges 1. A dealership does not have qualified technicians or enough technicians to diagnose the problem and perform the work on time and accurately - fix right first time, or 2. The quality control processes are not in place and a consumer s vehicle is not checked after a repair or service. The consumer has the right to fair value and good quality goods

25 Service or Repair of the Vehicle Right to Fair Value, Good Quality and Safety If a dealership fails to perform a service to the standards contemplated, the consumer may require the dealership to either: remedy any defect in the quality of the services performed, or refund to the consumer a reasonable portion of the price paid for the services performed. Procedural Risks & Challenges

26 Service or Repair of the Vehicle Exemptions from Application Procedural Risks & Challenges The Act allows the dealership or supplier relief in the event of product recalls or product liability. This implies that the dealership will not be held responsible for any product recall or any product defect.

27 Communication with Customer Risks and Challenges Thisprocesscouldbeariskif; Procedural Risks & Challenges 1. A dealership does not follow the policies and procedures that needtobeaddressed,or 2. The dealership staff is not aware of the policies and procedures. This implies that the customer must: Bekeptinformedoftheprogressoftheserviceorrepair. The cost must be confirmed or, Authorisation must be obtained in writing from the customer for additional repairs if the customer has not given approval up to a maximum amount. The time of completion and delivery must be confirmed with the customer. Always keep the CPA in mind when interacting and communicating with your customers!

28 Communication with Customer Risks and Challenges. Lets discuss the consumer's rights with respect to delivery of goods or supply of services Procedural Risks & Challenges Every transaction for services that the dealership performs, the servicesmustbecompleted atan agreed dateand time, and atan agreed place of delivery, and Allow the consumer a reasonable opportunity to examine the vehicle to ascertaining whether the consumer is satisfied. Theserightsimpliesthatyouneedtobehonestwhendealingwith a customer and when you promise a time for delivery. It further implies that the vehicle must be serviced or repaired as agreed and also that the customer must be given an opportunity to inspect the vehicle.

29 Delivery after Repair or Service Risks and Challenges Thisprocesscouldbeariskif; Procedural Risks & Challenges 1. A dealership does not follow the procedures that will allow the vehicle to be repaired of serviced on time. 2. Thedealershipstaffisnotawareofthetimeofdelivery. 3. The parts is not available for the service or repair. 4. The vehicle is not cleaned on the required time.

30 Delivery after Repair or Service Right to Fair Value, Good Quality and Safety Procedural Risks & Challenges Consumer's rights to good quality goods and service The items on the previous page do not apply to a transaction if the consumer has been expressly informedthataspecificrepaircouldnotbedone;and has expressly agreed to accept the goods in that condition

31 Marketing and the Consumer Protection Act As discussed earlier, with the introduction of the Consumer Protection Act, the nature of doing business in the marketplace changed in a number of areas. Marketing Pitfalls Marketing of goods must comply with the following: Pricing for goods or services must be displayed. Consumers can block direct marketing..

32 The Act and Consumer Protection Institutions The following pages covers some information with regard the institutions that enforces the Act as well as penalties instituted when the Act is not implemented. The Act and Institutions.

33 Consumer Protection Institutions National Consumer Commission ("NCC") enforces the Act. Powers given to ombudsman, industry ombudsman, alternative dispute resolution agents resolve disputes. National Consumer Tribunal adjudicates on applications or allegations of prohibited conduct. Consumer Protection Institutions

34 Enforcement of the Act Enforcement of the Act Enforcement by NCC Issues compliance notices for non-compliance. Commissioner may either: apply to Tribunal to impose administrative fine; or refer the matter to the NPA for prosecution as an offence.

35 Penalties Fineorprison(upto12months)orboth. Penalties Tribunal may impose an administrative fine: a maximum fine of 10% of the respondent s turnover during last financial year, or R1 million, whichever is the greater.

36 Conclusion Always keep the CPA in mind when interacting and communicating with your customers! Conclusion

37 End This concludes the e-learning module on the Consumer Protection Act. A detailed classroom session will follow from this module. End Thank you for your participation!