Black Friday deals are upon us, and the festive shopping season is around the corner, therefore it is important that all businesses which market, distribute, manufacture, or sell goods and services in South Africa, comply with the Consumer Protection Act 68 of 2008 (CPA). Below are a few noteworthy regulations that one should be aware of when buying or selling something in South Africa.
Consumer’s right to cooling-off period after direct marketing
According to Section 16 of the CPA; if a business markets any goods and services to consumers through direct marketing mechanisms such as via email, social media messages, approaching them directly, telephonically or SMS, consumers have five days to cancel the contract without any penalties and to be refunded any monies paid within 15 business days.1
Disclosure of prices of goods and services
Under Section 23 of the CPA; businesses are required to display a price if advertising any goods or service to the public, unless:
- The goods are displayed predominantly as a form of advertisement of a business.
- The goods are in an area within the premises where the public does not ordinarily have access.
- The business has provided a price estimate for repair and maintenance services.
A price will be deemed to be displayed if a second price fully covers and obscures the first. In an instance where there are multiple prices (of varying values) displayed, the supplier can only charge the lowest price on display. However, if the price displayed is an obvious error, the supplier would not be bound by it if they correct the price displayed and reasonable steps are taken to inform the consumer of the pricing error. A supplier would further not be liable for a change in price if an unauthorised person has altered, defaced, covered or removed a price displayed by the supplier.1
Returns and refunds
It is essential for businesses to have a returns and refunds policy. Customers can legally return goods and receive a full refund under the following circumstances, stipulated in Section 20 of the CPA:
- Goods purchased as a result of direct marketing and the consumer has cancelled within the five-day cooling-off period.
- When the goods purchased were not examined by the consumer prior to the delivery and the consumer rejects delivery of the goods for any of the reasons stipulated in section 19(5) of the CPA (as an example, goods are not of the quality as stipulated in the agreement or the goods fail to conform to material specifications stipulated in a special order).
- When goods are intended to satisfy a specific purpose (that has been communicated to the supplier) and within 10 business days of delivery to the consumer, the goods are found not to be suitable for said purpose.
- The goods delivered are not as per the order for instance the delivery includes a mix of the goods that the consumer ordered along with goods that were not part of the consumer’s order. In this instance, the consumer can accept the correct items in the order and return the incorrect items or reject the entire order altogether.
In addition, under Section 56 of the CPA; customers also have the right to receive a refund, replacement, or repair at their own choice if the goods purchased from a business are defective within six months of purchase. This automatic warranty is in addition to the business’ or manufacturer’s warranty. 1
Here are some tips provided by the Consumer Goods and Service Ombud (CGSO) to minimise problems with online purchasing:
- Use well-known and reputable websites.
- Ensure that there are valid contact details where you can lodge a complaint or send queries after a transaction.
- Make sure that you are aware of the delivery timeframe to ensure that you will receive the goods on or before the date you require the goods.
- Read the terms and conditions and check for any hidden costs.
- Check the internet for reviews and any complaints about that supplier.
- Use secure payment platforms and keep records of the transaction.2
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