Page 19 - Nexia SAB&T Property & Tax Guide 2022

THE CONSUMER PROTECTION ACT

Please note that the information contained in this section is not exhaustive and serves as a
brief overview of the Consumer Protection Act (68 of 2008), hereinafter referred to as the CPA,
as it specifically relates to property related transactions. There are still many ambiguities and
uncertainties surrounding some of the provisions of the Act which only time (and the courts)
will be able to interpret and clarify. You are strongly advised to contact our offices for further
advice or consultation on this topic.
Scope of the Act:
The CPA regulates the activities of suppliers and creates rights for consumers in the event
that they fall within the ambit and scope of the Act. 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 CPA does not apply to certain consumers, certain transactions, or in specific instances
where exempted by the Minister.
Summary of Consumer/Supplier:
A person to whom goods or
services are marketed in the Consumer Supplier Any person who markets
any goods or services
ordinary course of business
of the supplier
Can be a trust, company, CC,
Juristic persons with Any individual or body corporate, partnership,
asset value or turnover Juristic Person association, organ of state
The following are NOT less than R2 million
consumers/do not fall within
the ambit of the Act: Can reside in or
Juristic persons whose asset All individuals outside RSA or have Includes all service providers
and intermediaries of those
value or turnover is R2 million principal office in or
or more outside RSA goods and services acting
in the ordinary course of
The State Franchisees business (includes estate
Services supplied under agents)
employment contract Franchisors
Credit Agreement transactions Any user of particular
Collective bargaining goods or a recipient or Can be Non-Profit or Can include those operating
beneficiary of services
agreements (may not have been party For Profit in the supply chain as
Exemptions granted by the to the transaction) producer, importer,
Minister distributor, or retailer
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