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• Standard Bank of South Africa Ltd v Dlamini (2877/2011) [2012] ZAKZDHC 64;
2013 (1) SA 219 (KZD) 23 October 2012
Case law backing the consumer’s right to plain language in terms of the NCA and the
CPA](https://image.slidesharecdn.com/marketingconference15102014-141017035043-conversion-gate02/85/Consumer-Protection-26-320.jpg)
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- 1. REINFORCING CONSUMER RIGHTS: RETURN, REPAIR, OR REFUND? The concurrency of the CPA and the NCA DENISE FOUCHE ENDCODER/ ENDCODE.ORG
- 2. CONTEXT: South AfricanConsumer Protection law The Right to Return, Repair or Refund The NCA and these rights Technology challenges to consumer rights Brand risk – staying true to the promise Recommendations
- 3. SA Consumer Protectionlaw 2002 EC T 2005 (2007) 2008 1985 1996 (2011) 2013 UNGCP NCA CPA POPI CONSTITUTIO N
- 4. Return, Repair, orRefund • CPA: Right to Return S20 • Right to return if defective within 6 months of purchase date. • Consumer chooses remedy-repair, refund or replacement. • Service provider may not insist on repairing but entitled to examine or send it away to be assessed but not to be assessed and then simply repaired without consumer agreement to that repair. • In cases of direct marketing 5 days to automatically cancel and claim a refund.
- 5. Return, Repair, orRefund • No general right of return in terms of SA law • CPA: 4 instances when one can return goods 1. Direct marketing cooling-off period s16 • 5 days 2. Goods which have not been seen before purchase s20 with s19 • Upon delivery 3. Good do not meet particular purpose s55(3) • 10 days 4. Implied warranty of quality s56 • Up to 6 months • ECT: consumer provisions trumps CPA for online purchases • 1-3 above do not apply • General right to return (cooling off period) • 7 days
- 6. Return, Repair, orRefund • CPA • Direct Marketing – Cooling Off period s16 • s16(1) does not apply to a transaction if s44 of the ECT applies • A consumer may rescind a transaction resulting from any direct marketing without reason or penalty s16(3) • by notice to the supplier in writing, • within five business days • A supplier must– S16(4) • Return any payment within 15 business days after • receiving notice of the rescission, if no goods had been delivered to the consumer or • receiving from the consumer any goods supplied in terms of the transaction • Not attempt to collect any payment in terms of a rescinded transaction
- 7. Return, Repair, orRefund • CPA • Consumer’s rights with respect to delivery of goods or supply of service s19 • s19 does not apply to a transaction if s46 of the ECT applies • S19(2)(a) the supplier is responsible to deliver the goods or perform the services– • on the agreed date and time or within a reasonable time after concluding the transaction or agreement • at agreed place of delivery • at cost of supplier • The goods remain at the supplier’s risk until the consumer has accepted delivery • Allow consumer reasonable opportunity to examine the goods to ascertain consumer is satisfied goods are as contemplated in the agreement s19(5)
- 8. Return, Repair, orRefund • CPA • Consumer’s rights with respect to delivery of goods or supply Location / date / time other than as agreed Accept the delivery Require at agreed location / date / time Cancel without penalty Larger quantity of goods Reject all Accept agreed, treat excess as per s21 Mixed goods Accept agreed upon goods Reject all of service s19
- 9. Return, Repair, orRefund CPA • Unsolicited goods or services s21 Supplier informs consumer goods were delivered in error within 10 days Becomes unsolicited if supplier fails to recover them within 20 business days after informing Clearly addresses to another person Becomes unsolicited only if recipient informs supplier and not recovered within the following 20 business days. • Must not frustrate recovery attempts • Not liable for loss or damage during time in person’s possession or control • If a person is in possession of unsolicited goods, person may retain the goods /return at supplier’s expense • Supplier liable to any other person in respect of any right or valid claim relating to such goods. • Person has no obligation to pay for unsolicited goods or services • If consumer has made any payment relating to unsolicited goods or services, consumer is entitled to recover that amount with interest
- 10. Return, Repair, orRefund • S54 Consumer’s rights to demand quality service • 54(2) If supplier fails to perform a service to the standards contemplated in subsection (1) the consumer may require the supplier to either remedy any defect or refund a reasonable portion of price paid for services performed and goods supplied, having regard to the extent of the failure. • S55 Consumer’s rights to safe, good quality goods • Right to receive goods: • Reasonably suited for purpose for which intended • Good quality • Free of any defects • S56 Implied warranty of quality • Within 6 months after the delivery of any goods, consumer may return the goods to the supplier without penalty and at supplier’s risk and expense if goods fail to satisfy requirements and standards contemplated in s55 and supplier must at direction of consumer either repair or replace the failed, unsafe or defective goods; or refund the consumer the price paid • S56 Implied warranty of quality • Warranty on repaired goods for a period of three months
- 11. Return, Repair, orRefund Supplier unable to deliver goods in respect of lay-by and consumer has paid full price consumer option: supply equivalent of goods refund the consumer money paid with interest if inability to supply is due to circumstances beyond supplier control double the amount paid as compensation for breach of contract • Lay-bys s62(2)(b) • Pre-paid service (s64 (3)(b)) • If a supplier intends to close a facility to which the supplier has committed to provide future access in terms of an agreement with a consumer to provide any service without making available a reasonably alternative facility, supplier must no later than five business days after closing the facility refund the balance of any money belonging to the consumer
- 12. Return, Repair, orRefund • NCA: Designed to protect consumer in the credit market and make credit and banking services more accessible. • Lower income earners with limited access to credit channels • Complex credit agreements rendered many consumers vulnerable to credit providers. • Regulate consumer credit and credit marketing practices • Promote responsible credit granting and use • Prohibit reckless credit granting • Regulate credit information • Established recourse for unfair credit practices.
- 13. Return, Repair, orRefund • NCA & CPA: • CPA does not apply where transaction constitutes a credit agreement under the NCA S2(d) • Goods and services that are the subject of the credit agreement are not excluded from the CPA ambit. • A credit provider sells a product to a consumer on credit, the credit agreement must be drafted in terms of the NCA. • Consumer will be afforded CPA protection regarding the product, such as the right to return faulty goods. • Inconsistency between CPA and other law, must be interpreted concurrently. S9 • Act thus must be applied concurrently with the NCA. If not possible, Act most beneficial to consumer will prevail.
- 14. Return, Repair, orRefund • NCA & CPA: • If credit provider sells a product under a credit agreement, credit agreement must comply with NCA and CPA. • Drafted in plain understandable language • Not contain prohibited contract terms and conditions • Consumer not be required to waive any rights • CPA provisions regarding safety monitoring and recall and liability for damages caused by goods apply to all transactions even those exempted from CPA application. • NCA regulates process, content, formalities, rights and obligations related to credit agreements; CPA regulates rights of consumers regarding standard and quality of goods and services supplied. • Two Acts must be read together. • When a credit provider sells a product to a consumer on credit, the credit agreement must be drafted in terms of the NCA
- 15. Return, Repair, orRefund • NCA: Simplifying credit agreements and information disclosure affects: • CREDIT PROVIDERS: • Banks • Microlenders • Retailers • CONSUMERS: • Natural persons • Juristic persons (asset value/annual turnover equals/exceeds R1million threshold) • OTHERS: • Debt counsellors • Credit bureaux
- 16. Return, Repair, orRefund • NCA • CONSUMER RIGHTS: Apply for credit Protected against discrimination in granting of credit Informed by credit not granted Receive free copy of credit agreement Credit agreement in plain language Personal and financial info treated confidentially Understand all fees, costs, interest rates, total instalment and any other details Say no to increases on credit limit To decide whether you want to be informed about products or services via telephone, sms, mail or email campaigns To apply for debt counselling
- 17. Return, Repair, orRefund • NCA • MARKETING TO CONSUMERS: Restricts and outlaws certain practices of loan canvassing Automatic credit limit increases and negative option marketing Provides for clear and understandable marketing communications Consumers must receive detailed quote valid for 5 days Caps interest rates Caps maximum amount a credit provider can charge for other fees
- 18. Return, Repair, orRefund • NCA • MARKETING TO CONSUMERS: specific provisions • Early settlement of credit agreements • Consumer may terminate the credit agreement at any time by paying the settlement amount. s122 • Consumer entitled to cancel a credit agreement at any time with or without prior notice to credit provider. s125
- 19. Tech challenges toconsumer rights • Internet: applicable law • Big data: privacy violations • Growing power imbalance: private sector has more information on consumers’ spending habits and credit histories than consumers themselves • Online Competitions • Electronic commerce: understanding terms, conditions and costs related to online transactions; delivery; payment “Online finger-wagging, lawsuits, disgruntled customers -- they're the unfortunate byproducts of what many people perceive to be big data abuses.” According to a September 2013 study from data privacy management company Truste, 1 of 3 Internet users say they have stopped using a company's website or have stopped doing business with a company altogether because of privacy concerns.
- 20. Tech challenges toconsumer rights • European Commission Directive on Consumer Rights: to protect consumers purchasing goods online • Ban on “cost-traps”. Online buyers to confirm understanding of price to be paid • Returning goods: reimbursement for goods not matching expectations. Extension from 7 to 14 calendar days under which consumers can withdraw from a sales contract. • Transparency: traders obliged to disclose total cost of product or service and any extra fees; extra charges for paying by credit card will not be allowed; bans pre-ticked boxes on additional services • Online search: increasing number of ads and paid linkes in search result pages. More complicated to access best options and most competitive prices as Google drives viewers to sponsored services. “The greatest concern of respondents is that, returning a product they did not like and getting reimbursed, is not easy”. Civic Consulting, 2011 poll of European online shoppers
- 21. CPA Enforcement issues • Weak enforcement mechanisms • Consumer awareness is low • National Consumer Tribunal: administrative penalties. Enforcement through compliance notices • Safety monitoring and recall (s60). The National Consumer Commission must promote systems to receive notice of the return of any goods because of a failure, defect or hazard “Complain, complain, complain - I can't say it enough - complain. Take advantage of the commission because at the end of the day, you can have the best laws in the world, you can have the most well equipped commission but if you don't tell us what the problems are - we have no way of knowing.” National Consumer Commissioner Mamodupi Mohlala to the South African public
- 22. Avoiding brand risk • South Africans posted more than 5 million tweets* during Q4 2011 • Next nearest was Kenya with 2.47 million tweets • Nigeria was the third most-active country with 1.65 million tweets South Africa has the most active Twitter population in Africa * Survey analysing 11.5m geo-located tweets across Africa. Source: PC Mag (2012) http://www.slideshare.net/OnDevice/south-africa-mobile-consumer-trends
- 23. Avoiding brand risk • Social media provides a platform for happy and disgruntled customers • An unmediated channel for commenting on brand experiences • Compliance with consumer legislation as a barrier to the channel
- 24. Recommendations Create campaignswith the consumer in mind: • Product and/or services promises are achievable Ensure Refund and Returns policies are in place and compliant: • Training: • CPA • Refund and Returns policies • Enforcement • Outsourcing of services to digital marketing specialists: governance of outsourcing agreement Website disclosures: • Your company: kind of business; location; contact details • The products and services: exactly what is being sold, at what cost • The Sale: additional costs relating to sale; warranties or guarantees; safe payment options; estimated delivery date for the order • Consumer Protections: privacy policy; policies on unsolicited email; complaints procedures; return, refund or repair policies.
- 25. Recommendations Standard Businessterms and conditions: • Review in terms of consumer legislation Marketing practices and methods: • Review in terms of consumer legislation Consumer law impact on business: • Complianece framework and rollout of compliance programmes
- 26. Case study •Standard Bank of South Africa Ltd v Dlamini (2877/2011) [2012] ZAKZDHC 64; 2013 (1) SA 219 (KZD) 23 October 2012 Case law backing the consumer’s right to plain language in terms of the NCA and the CPA
- 27. Denise Fouche denise.fouche@endcode.org endcode.org THANX, QUESTIONS?
- 28. References • http://www.euractiv.com/sections/consumer-choice-internet/eu-bets-consumer-rights-boost-e- commerce-301370 • http://www.computerworld.com/article/2485493/enterprise-applications-big-data-blues-the-dangers- of-data-mining.html
Editor's Notes
- #2 I’m going to consider the South African consumer’s right to choose when goods are not to their satisfaction. The right to choose to either return goods, have them repaired or receive a refund is provided for in the CPA. Although credit agreements concluded in terms of the NCA are excluded from the ambit of the CPA, the goods and services that are the subject of the agreement are not e
- #4 South Africa late in implementing consumer protection legislation. UN Guidelines on Consumer Protection were published in 1985. The UK’s CPA was enacted in 1987. Nigeria implemented its Consumer Protection Council Act in 1992, Botswana adopted consumer legislation in 1998. SA follows a rights-based approach as set out in the UNGuidelines South African consumer protection legislation has been criticised for weak enforcement mechanisms. Enforcement weakness is a global problem even though many countries have strengthened their laws CI maintains that CPAs are not a guarantee of consumer protection (CI Report: State of consumer protection around the world 2014 report). Weak implementation, and laws are not revised once passed. Balance between protecting consumers and ensuring access to credit a core issue (International Associattion of Consumer Law biannual conference Sept 2013) The CPA makes provision for 8 fundamental consumer rights. These include: the right to equalityin the market
- #6 5 days after receiving the goods, the consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods 2. no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. 3. 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel wihtou penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. 4. all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #7 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #8 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #9 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #10 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #11 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #12 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #13 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #15 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #16 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #17 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #18 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #19 4 instances when one can return goods under CPA: Direct marketing cooling-off period: s16 5 days after receiving, consumer can return/cancel entire contract without penalty/and receive a full refund. Consumer pays costs to return goods Goods which have not been seen before purchase: s20 (read with s19) no opportunity to examine or inspect actual goods received prior to purchase, on delivery they are entitled to inspect. If good do not meet ‘type’ or ‘quality’ reasonably expected from agreement or if do not conform to specification in terms of a special order, consumer can refuse delivery/receive full refund/ and cancel without penalty. Supplier is liable for return costs. Good do not meet particular purpose. S55(3) 10 days after receiving goods consumer can return the goods if it is not suitable for the particular purpose, cancel without penalty, supplier liable for return costs. Not entitled to return if public regulation prohibits or goods have been disassesmbled, altered, added to or combined with other goods and property. Implied warranty of quality. S56 all goods sold are sold with an implied warranty of quality that cannot be contracted out of or revoked, Warranty gives consumer right to receive goods that are reasonably suitable for purpose intended to be used for, are of good quality, free of defects and will be durable and usable for a reasonable period of time. If goods do not comply up to 6 months return or get goods replaced or get goods repaired. Without penality at supplier’s cost. ECT: consumer provisions will trump CPA. Online purchases. Reasons for return 1-3 do not apply if ECT Act provisions apply to the transaction. Instead of these right of return consumers have: a general right to return (cooling off period); for 7 days after delivery for any reason without penalty but consumer liable for costs of return.
- #20 Cost traps – unsolicited expenses hidden behind free offers EC Directive on Consumer Rights effective June 2014 Ban on “cost-traps”. Online buyers to confirm understanding of price to be paid Returning goods: reimbursement for goods not matching expectations. Extension from 7 to 14 calendar days under which consumers can withdraw from a sales contract. Transparency: traders obliged to disclose total cost of product or service and any extra fees; extra charges for paying by credit card will not be allowed; bans pre-ticked boxes on additional services Online search: increasing number of ads and paid linkes in search result pages. More complicated to access best options and most competitive prices as Google drives viewers to sponsored services.
- #21 Cost traps – unsolicited expenses hidden behind free offers EC Directive on Consumer Rights effective June 2014 Ban on “cost-traps”. Online buyers to confirm understanding of price to be paid Returning goods: reimbursement for goods not matching expectations. Extension from 7 to 14 calendar days under which consumers can withdraw from a sales contract. Transparency: traders obliged to disclose total cost of product or service and any extra fees; extra charges for paying by credit card will not be allowed; bans pre-ticked boxes on additional services Online search: increasing number of ads and paid linkes in search result pages. More complicated to access best options and most competitive prices as Google drives viewers to sponsored services.
- #22 31-3-2011 Pretoria -
- #27 Mr Dlamini bought a second hand car in terms of a hire-purchase agreement with Standard Bank. Within days the vehicle stopped working and Mr Dlamini returned the vehicle. He unfortunately did not follow the return procedure set out in the credit agreement which resulted in great financial loss. Mr Dlamini held that he did not know that he had to notify the bank (in addition to the dealership) in order for the cancellation to be valid. Mr Dlamini did not understand English and is functionally illiterate. The entire agreement was declared unlawful because it was not in plain language, to the extent that Mr Dlamini was not informed of the material terms of the agreement.