Consumer Protection Act sets out new regulations for auto sales
LEGISLATION WATCH- Auto dealers beware: The Consumer Protection Act has you in its sights: The Consumer Protection Act, which is currently being discussed in a plenary session at the House of Representatives, could impose new regulations on the sale of cars, Al Borsa reports. The law starts off by classifying cars as a “strategic good,” which places its sale in the purview of the Consumer Protection Authority (CPA) and its crusader-head, Atef Yakoub. Key features of the act that impact the auto industry include:
- Price controls: It appears as a “strategic good,” the CPA can be authorized to set price controls on vehicles if it receives approval from the cabinet. It is not yet clear under which circumstances the CPA would have a mandate to regulate prices.
- Dealers will have to clearly display sticker prices and clearly. Break down service fees.
- New penalties: The law sets penalties of up to EGP 500k for cars not meeting Egyptian or international standards. A penalty of up to EGP 2 mn is set for cars which are classified as unsafe; dealers who sell an unsafe vehicle that later results in bodily harm to a driver or passenger could face life in prison.
- Recall guidelines: The Consumer Protection Act sets a deadline of seven days for a company to recall cars which have been deemed faulty.
- Eliminating waitlists: The act outlaws the practice of waitlists on models, and the premium pricing on cars. The act bans hoarding of cars to artificially inflate the price.