Page 48 - Nexia SAB&T Business in South Africa Guide 2024

CONSUMER PROTECTION ACT, 68 OF 2008

The Consumer Protection Act and Regulations (the CPA) is intended to promote
fair business practices by governing transactions and services that occur in SA
between suppliers and consumers. It regulates the activities of suppliers and
creates rights for consumers (in the event that they fall within the ambit and
scope of the Act).
Where applicable, the CPA regulates the marketing of goods and services
to consumers as well as the relationships, transactions, advertisements
and agreements between the consumers, suppliers, producers, distributors,
importers, retailers, service providers and intermediaries of those goods and
services. A supplier may reside in or outside SA, or have its principal office in or
outside of SA.
The CPA applies to:
■ Every transaction occurring within SA, and covers both goods or services
delivered or rendered “in the ordinary course of business” and it applies to
transactions which suppliers enter into with consumers (a transaction refers
to the supply of goods or services in return for payment). It therefore covers:
■ The promotion and advertising of goods or services that could lead to the
transaction being entered into (unless exempted), the performance of the
service and the supply of goods, the goods and services themselves after
the transaction is completed, and the goods which form the subject of
an exempted transaction. The Act does not apply to certain consumers,
certain transactions, or in specific instances where exempted by the
Minister, more specifically:
The CPA does not apply to the following consumers:
■ Juristic Persons whose asset value or annual turnover equals or exceeds
R2 million. Juristic persons, for purposes of the CPA include: a company, a
close corporation, and also a body corporate, partnership or association, or a
trust as defined in the Trust Property Control Act, 57 of 1988.
■ The State.
■ Credit Agreement Transactions (exclusions apply).

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