Recently South Africa has enacted legislation which protects the consumer against certain practices by business. This legislation requires a business to modify its behaviour in certain areas and is not only intended to protect the consumer from unfair business practices. As an example, franchise agreements would need to comply with certain requirements. As an example, a franchisee may cancel a franchise agreement without cost or penalty within 10 business days of signing that agreement.

Bundled offerings (i.e. where, as a condition of the provision of a good or services, some additional good or service needs to be acquired from the same supplier) is further prohibited in certain circumstances and serves as another example of the need for all businesses to comply with the Consumer Protection Act. Luckily the final legislation did do away with many of the concerns business had with the consumer's rights to return goods or services purchased, however these rules would still need to be assessed by businesses in order to safeguard themselves against unforeseen returns. The Act also makes provision for the application of the new rules to pre-existing transactions and agreements and businesses are well advised to familiarise themselves with the application of these rules as they differ according to the exact field (for instance the right to receive information concerning the transaction in plain and understandable language or the disclosure of so-called grey goods) regulated by the Act. Luckily business do have limited time in order to ensure that they comply with the Act, as the provisions of the Act comes into effect within 12 months to 18 months from 29 April 2009. The legislation will apply equally to foreign firms entering the South African market.

For further information or assistance regarding the Consumer Protection Act, kindly contact Rian Geldenhuys.