Consumer Protection Act Compliance

Practical compliance with the Consumer Protection Act, from your terms and conditions to returns, warranties and marketing.

The Consumer Protection Act applies to most businesses that supply goods or services to consumers in South Africa. It shapes your contracts, pricing, marketing, returns policy and product safety obligations, and non-compliance can lead to complaints, enforcement action by the National Consumer Commission and administrative fines.

What we advise on

  • Terms and conditions: plain language requirements and the notice that must accompany risky or onerous terms.
  • Fixed-term agreements: the 24-month limit on consumer contracts and the consumer’s right to cancel on 20 business days’ notice.
  • Returns and warranties: the implied warranty of quality and the six-month right to return defective goods.
  • Direct marketing: cooling-off rights, opt-outs and limits on unsolicited contact.
  • Pricing and disclosure: displayed prices, product labelling and trade descriptions.
  • Product liability and recalls: liability for harm caused by unsafe or defective goods, and recall procedures.
  • Promotions and franchises: the specific rules for promotional competitions, loyalty programmes and franchise agreements.

Who is protected?

The Act protects individuals and smaller businesses. Juristic persons with an asset value or annual turnover of R2 million or more are not consumers for most purposes, so many business-to-business contracts fall outside it.

Selling online?

Online sales must also comply with the Electronic Communications and Transactions Act, which has its own disclosure requirements and cooling-off right. We align your website terms with both Acts.

When we can help

We assist businesses that:

  • Sell goods or services directly to consumers.
  • Run retail, e-commerce or subscription businesses.
  • Use fixed-term or recurring customer contracts.
  • Have received a complaint or a notice from the National Consumer Commission.
  • Are launching a promotional competition or loyalty programme.
  • Manufacture, import or distribute products.

How the process works

From review to compliance.

  1. Review
    We review your contracts, website terms, policies and marketing material.
  2. Gap analysis
    We identify non-compliant terms and practices, ranked by risk.
  3. Remediate
    We redraft your terms and conditions, returns and warranty policies and required notices.
  4. Train
    We brief your team on returns, complaints and cancellations.
  5. Respond
    We assist with customer complaints, ombud referrals and regulator enquiries.

Compliance costs far less than defending a complaint. A focused review of your customer-facing documents is usually the best place to start.

GET IN TOUCH

What to prepare

Helpful documents for your review.

  • Current terms and conditions and website terms.
  • Returns, refund and warranty policies.
  • Standard customer contracts and quotations.
  • Marketing and promotional material.
  • Any complaints or regulator correspondence.

Common Questions

If you supply goods or services to consumers in South Africa in the ordinary course of business, it very likely does. Some transactions are exempt, and larger juristic persons are generally not consumers under the Act.
Not in every case. Consumers may return defective goods within six months, and cooling-off rights apply to direct marketing and many online sales. Other change-of-mind returns depend on your own policy.
Yes. A consumer may cancel on 20 business days’ written notice, and the supplier may charge a reasonable cancellation penalty.
Terms that limit your liability, place risk on the consumer or require an indemnity must be drawn to the consumer’s attention in plain language, and the consumer must have an adequate opportunity to understand them.
The National Consumer Tribunal can impose administrative fines of up to 10% of annual turnover or R1 million, whichever is greater, as well as other orders.

SELLING TO CONSUMERS?

We help businesses meet their Consumer Protection Act obligations without losing commercial flexibility.

Read more: Regulatory Compliance · POPIA Compliance

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This page is general information and not legal advice.

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