Consumer Protection Act Article 4: Disclosure of Information

In our previous article we discussed the consumer’s right to equality in the consumer market, or better put, the protection against discriminatory marketing but specifically when differential treatment is allowed, special needs, the legal consequences of discrimination in relation to the Act and how a court will approach discrimination in regards to marketing.

In this article, we shall discuss what information must be disclosed to a consumer to make an informed decision before entering into a transaction for goods or services.

The Consumer Protection Act (“the Act”) promotes informed consent as a cornerstone for a consumer. To achieve this consumers are required to have all relevant information relating to a transaction. This consists of the following:

  1. Any information that is provided to the consumer must be in plain and understandable language;

  2. Consumers must be aware of the price of the goods or services being offered to them. This can be done by displaying the price of goods on display, its marketing material or by physically attaching a price tag to an item. However, this will not apply to advertising displays. Unless an obvious error has been made by the supplier of goods in regards to the displayed price the supplier is bound thereby;

  3. Any product labelling or trade description must not be likely to mislead a consumer in regards thereto;

  4. Suppliers are required to inform consumers whether they are trading in or providing grey market goods;

  5. A consumer must be provided with a written record of the transaction;

  6. In the event of an intermediary acting on behalf of a principle, for example, an estate agent, the agent is required to disclose information relating to the parties to the transaction;

  7. The consumer is entitled to know the identity of any employee acting on behalf of a supplier. To achieve this the employee must wear a visible badge or other identification or be able to provide suitable identification when requested. Kindly note that this is only required when direct marketing is taking place, a supplier is delivering or installing any goods or performing any services at the consumer’s premises;

  8. A consumer is entitled to terminate an agreement that was the result of direct marketing. This will however be canvassed in full in a later article. At this stage it is sufficient to note that the consumer must be informed of this right;

  9. If a consumer enters into an agreement for the supply of any goods or services and does not do so in person, and therefore does not have the opportunity to inspect same, further information must be disclosed to the consumer;

  10. In the event of a limitation of liability or where the consumer is to assume some risk in regards to any goods or services supplied the supplier must draw the consumer’s attention to this. This includes any instances where the consumer’s legal position may be affected.

    ***Kindly note that the contents of this article are intended for information purposes only and does not constitute legal advice. Please consult an attorney

In our next article we shall consider marketing in terms of the Act but in this instance in regards to responsible, honest and fair dealings.