Franchise Law South Africa
Franchise Attorneys

Consumer Protection Act & Regulations

The provisions of the new Consumer Protection Act came into effect on 1 April 2011. Many South Africa franchises are based on long running agreements between franchisors and franchisees. Outdated franchise agreements may soon be declared invalid by reason that they may be found to be contrary to current South African legislation. The Consumer Protection Act 68 of 2008 and the Competition Act 89 of 1998 contain specific provisions that may be contrary to well established franchising principles. Fixed pricing structures and exclusive territories may contravene the provisions in the Competition Act. Restrictive purchase conditions may also contravene the provisions in the Consumer Protection Act. Franchisors are therefore advised to review their franchise agreements in light of the applicable legislation.

Consumer Protection Act

Consumer Protection Act promotes a fair, accessible and sustainable market place for consumer products and services which establishes national norms and standards relating to consumer protection, provides improved standards of consumer information and prohibits certain unfair marketing and business practices. The Consumer Protection Act promotes responsible supplier behaviour as well as consistent legislative and enforcement frameworks relating to consumer transactions and agreements.

Legislation and Business Regulation

The DTI (Department of Trade and Industry) develops and reviews regulatory systems in the areas of competition, consumer protection, company and intellectual property, as well as public interest regulations. The Department of Trade and Industry also oversees the work of national and provincial regulatory agencies mandated to assist the DTI in providing competitive and socially responsible business and consumer regulations, for easy access to redress and efficient markets.

Advice & Services

Smit & Van Wyk, Inc. legal services include giving advice to businesses and franchises on competition, consumer protection, company and intellectual property matters.

 

CONTACT DETAILS

Esmari Jonker


Esmari Jonker

Attorney

Tel:
012 349 7800

E-mail:
enquiries@svw.co.za

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Smit & Van Wyk. Inc. | Address: Apex Corporate Park, Persequor Technopark, Pretoria, South Africa | Tel: 012 349 7800 | E-mail: enquiries@svw.co.za