Sales Promotion

The Consumer Protection Act (CPA) aims at promoting fairness, openness and good business practice between the suppliers of goods or services and consumers of such goods and services.

 

The CPA applies to the selling of goods and rendering of services, or the promotion of these goods and services, from a Supplier to a Consumer. A business can be considered to be a Consumer for purposes of the Act as long as their annual turnover or asset value, at the time of the transaction, fall below the threshold determined by the Minister.

 

The CPA will therefore not be applicable between B2B marketing as long as both business’s equals or exceeds this threshold.

 

The CPA outlines several misleading practices and lays down the conditions whereby certain practices to be considered fair, including:

  • Unconscionable conduct
  • False, misleading or deceptive representations
  • Fraudulent schemes and offers
  • Pyramid and related schemes
  • Over-selling and over-booking
  • Unfair, unreasonable or unjust contract terms
  • Prohibited transactions, agreements, terms or conditions