Consumer Protection Act Article 9: Responsible, Honest and Fair Dealings – Part 5

In our previous article, we discussed marketing in terms of the Act but in regards to specific rights such as negative option marketing and promotional competitions.

In this article, we shall continue on this aspect but in relation to trade coupons, loyalty programs and alternative work schemes.

Trade coupons and similar promotions:

Please note that this provision in regards to the Act does not apply where the provisions of Promotional Competitions (article 8) applies.

This would consist of where a supplier of goods or services offers a promotional offer, such as an offer or promise, of any trade coupon or prize whether or not the same is linked to the requirement that the consumer enters into any transaction.

The supplier making the promotional offer must be able to fulfil it and meet the anticipated demands that would normally result from the offer. The offer must furthermore clearly describe the prize, gift, or the like, and the manner or procedure that the consumer can claim the prize or gift.

The consumer may not be charged for the processing of any transaction associated with the promotional offer or trade coupon.

It is however a defence if the supplier is able to arrange comparable substitute goods or services if the supplier is unable to fulfil or meet the demands.

Customer loyalty programmes:

Also known as customer awards/rewards, is when a consumer accumulates points that are treated as a legal medium of exchange (money). This can be offered as payment for goods or services in terms of a supplier’s loyalty programme.

A supplier must be in a position to supply sufficient quantities of the goods or services, of the quality, agreed on, for all reasonably foreseen orders.

Any document containing the loyalty programme must describe in sufficient detail the goods or services relating thereto and how the programme works. As above the customer may not be charged for processing a periodic fee that the customer is required to pay for participation in the programme.

It is however a defence if the supplier is able to arrange comparable substitute goods or services if the supplier is unable to fulfil or meet the demands.

Alternative work schemes:

Also, known as the work-from-home scheme. While these are permissible in terms of the Act a promotor of this arrangement may not charge a fee for getting any work, business, activity or investment unless the person charged has actually been provided with the above.

Any representation made in regards to work, business, activity or investment must be true, accurate and be available when payment is made.

Any promotional material regarding an alternative work scheme must contain warnings about the uncertainty of the extent of work, business or income that may be derived as well as the supplier’s full details and the nature of what is being offered.

***Kindly note that the contents of this article are intended for information purposes only and do not constitute legal advice. Consult your attorney.

In our next article, we shall continue to discuss responsible, honest and fair dealings but in relation to specific rights such as referral selling, direct marketing and unsolicited goods and services.