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THE CONSUMER PROTECTION ACT

Please note that the information contained in this section is not exhaustive and serves as
a brief overview of 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 Act 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 Consumer Supplier Any person who markets
services are marketed in the any goods or services
ordinary course of business Juristic persons with Any individual or
asset value or turnover Juristic Person Can be a trust, company, CC,
of the supplier less than R2 million Can reside in or body corporate, partnership,
outside RSA or have association, organ of state
The following are NOT All individuals principal office in or Includes all service providers
consumers/do not fall within Franchisees outside RSA and intermediaries of those
the ambit of the Act: Any user of particular goods and services acting
Juristic persons whose asset goods or a recipient or Franchisors
value or turnover is R2 million beneficiary of services Can be Non-Profit or in the ordinary course of
or more (may not have been party business (includes estate
The State to the transaction) For Profit
Services supplied under agents)
employment contract Can include those operating
Credit Agreement transactions
Collective bargaining in the supply chain as
agreements producer, importer,
Exemptions granted by the distributor, or retailer
Minister

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