The Purpose of the Consumer Protection Act

To promote the social and economic welfare of consumers in South Africa

Eight Fundamental Consumer Rights
1. The right of Equality in the consumer market EVERY
2. The right to privacy PERSON
3. The right to disclosure and information DESERVES
4. The consumer’s right to choose CHOICE
5. The right to fair and responsible marketing MARKETING,
6. The right to fair and honest dealings DEALS
7. The right to fair, just, and reasonable conditions CONDITIONS &
8. The right to fair value, good quality and safety VALUE

Scope of the Application of the Act

Transactions that fall within the scope of the application of the CPA
 Each transaction occurring within SA
 The promotion of good and services or the supply of good or services
unless exempted from the CPA
 The supply or performance of goods and services in terms of a transaction
to which the CPA applies
 The supply goods and services which are exempt from the application of
the CPA, but only to the extent that those goods and the
importer/distributor/producer/retailer are nevertheless subject to the
provisions of the CPA in terms of safety monitoring recalls and strict
product liability.
Transactions that fall outside the scope of the application of the CPA
 Goods and services that are promoted or supplied to the state
 Consumer is a juristic person whose assets or annual turnover equal or
exceed R2million at the time of the agreement
 If the transaction falls within an industry-wide exemption granted by the
minister to a particular industry.
 Services to be supplied under an employment contract.
 Banking services, investment services, insurance- related services and
other services governed by other legislation and authorities

EVERY The right to equality in the consumer market

Right to protection against discriminatory marketing
o S8 prohibits the supplier of goods and services from unfair discrimination
against a person or group of persons in relation to access, priority of
supply, quality or pricing of goods and services on the basis of one or
more grounds of discrimination contemplated in the Constitution.
Reasonable grounds for differential treatment in specific circumstances
o S9 of the CPA protection Act provides for reasonable grounds for
differential treatment in specific circumstances. Example: Minors,
pensioners, and gender
PERSON The consumer’s right to privacy
- A consumer’s right to privacy is protected by the CPA through placed
restrictions on unwanted direct marketing
- Direct marketing: approach someone, in person, by post or through
electronic communications for the direct or indirect promotion or offering
to supply goods and services in the ordinary course of business or to
request that person to make a donation of any nature for any purpose.
- Direct Marketing is relevant in the case of a consumer’s cooling off rights
and unsolicited goods
- Has a direct impact on POPIA
The right to restrict unwanted direct marketing
Each person’s right to privacy includes the right to refuse an approach or
communication if such approach or communication is primarily for the purpose if
direct marketing or to require that it be discontinued. In the case where an
approach or communication is not in person, the consumer can pre-emptively
block it.
Regulation of time for contacting consumers
A supplier may not engage in direct marketing directed to a consumer at home
on:
 Sundays and public holidays
 On Saturdays before 9am and after 1pm
 On any other day before 8pm and 8am
Unless the consumer explicitly requested or agreed otherwise

Consumer’s right to Choose

Consumer’s right to select suppliers

o Supplier may not as a condition of supplying good or services, or as a
condition of entering to agreement or transaction require the consumer to:
- Purchase goods or services from the supplier
- Enter into an additional agreement or transaction with the
same supplier or designated third party
- Agree to purchase any goods or services from the designated
third party
o This is known as bundling. Bundling is only allowed when
- convenience outweighs the limitation of the consumer’s right to
choose
- It’s to the economic benefit of the consumer
- The bundled goods are offered separately at an individual price.
Expiry and Renewal of fixed term agreements
Consumer agreement is a fixed term agreement. Term may not exceed the
prescribed maximum period of 24 months.
Consumer may terminate the fixed term contract upon expiry without any
costs of penalty (Consumer is held liable for costs of cancellation up to the
date of cancellation)
Consumer may terminate the fixed-term contract before the expiry date
by giving the supplier a 20-business day notice and in such a event:
-the consumer remains liable for any amounts due up to the date of
cancellation
-the supplier may charge a reasonable cancellation penalty
-the supplier must credit any amounts due to the consumer
Supplier may terminate a fixed term agreement after 20 business days of
notice to the consumer of a material failure to comply with the agreement
unless the consumer has rectified the failure within that time
Supplier must give the consumer notice for impending expiry of the
agreement (max 80 and min 40 business days before the impending
expiry)
Expiry of the agreement: Automatically renewed on a monthly basis
subject to the changes the supplier has provided in the impending expiry
notice, unless the consumer has expressly requested the supplier to
terminate the agreement upon expiry or agreed to renewal of the
agreement for a further fixed term.
Pre-Authorisation of repair and Maintenance
o Only applies to transactions or consumer agreements with a value above
R1
o Consumer has the right to request a quotation from the supplier prior to
the suppliers executing the repairs and maintenance services
o Suppliers are not permitted to charge the consumer any costs of drawing
up a quotation, diagnostic work, disassembly or re-assembly required in
terms of drawing up an estimate, unless the supplier has disclosed the
price of the estimate to the consumer and the consumer has approved it.
Cooling-off right
 S16 provides consumers with a right to a cooling-off period as a result of
direct marketing
 The consumer may rescind a transaction or agreement resulting from
direct marketing without reason or penalty on the later date which:
 The transaction or agreement was concluded
 The date in which the goods were delivered to the consumer
 The supplier must return any payments received from the consumer (if no
goods have been delivered to the consumer) or the consumer return any
goods delivered by the supplier as a result of the transaction.
 Consumer bears the risk and costs related to such return of goods.
Cancellation of advance booking, reservation or order
 Consumers have the right to cancel any advance booking,
reservation or orders to be supplied
 Suppliers are entitled to requesting a reasonable, advance deposit
for reservations, orders and bookings depending on the nature of
the business and specific circumstances.
 Suppliers are entitled to charge a reasonable charge for cancellation
of booking, reservation or orders depending on the nature of the
business and specific circumstances.
 A supplier may not, however, impose a cancellation charge on the
reservation of a booking, order or reservation if the person who
booked, ordered or reserved is hospitalized or died.
Consumer’s right to choose or examine products
o The consumer will only be held liable for damaged goods is they are as a
result of the consumer’s negligence, malicious behaviour or criminal
behaviour
o If good are sold from open stock, the consumer has the right to reject and
select items from that stock before completing the transaction.
o If the consumer agrees to buy goods based on a description or sample, or
both, given by the supplier, the goods delivered to the supplier must in
ever material aspect and characteristics match the description
Consumers right in respect of delivery of goods or supply of services
 Supplier is reasonable for the delivery of goods and performance
if services at an agreed date, time, place and at his own cost. The
goods will remain the risk of the supplier until the consumer has
accepted delivery
 If the agreement does not provide a specific date or time for the
delivery of goods or the performance of services, the supplier is
not allowed to request the consumer to accept delivery or
performance at an unreasonable time.
 If the delivery of good and the performance of services is not
rendered by the supplier at the agreed time or place, the
consumer may either
 Accept delivery of goods or performance of services at that
specific time and location
 Require the delivery of goods and performance of services
at the agreed time and location
 Cancel the agreement without penalty
 Consumer has the right to examine the goods
 If the supplier delivers to the consumer a larger quantity of good than that
agreed upon, the consumer may
 Reject all goods delivered
 Accept and pay for the agreed quantity and treat the excess as
unsolicited goods.
Consumer’s right to return goods