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Consumer Protection ACT Highlight 1

BY

"Chapter 2, Part A. Fundamental Consumer Rights

a Supplier of goods or services must not unfairly-

(e) charge different prices for any goods or services to any persons or category of persons"

 

What does this mean?:

This means that you cannot charge larger consumers more than you would charge a smaller consumer for exactly the same product/service or amount of products/services.

 

 

Example:

An apple sold to John Smith for R10.00 should also be sold for R10.00 to Donald Trump (one of the richest men in the world). Prices can only vary if the offering varies.

 

Conclusion:

There is a trend in the marketplace where larger companies are charged more for the same products supplied to smaller companies.

 

This practice is not allowed by the new CPA.

 

 

Disclaimer: 

Please note that we are not giving legal advice, we are merely highlighting certain key requirements in the new CPA that could impact our clients.  Please discuss the act with your legal advisor for specific and comprehensive information regarding your legal rights and obligations.  The act must be interpreted as a whole and not in part.  IT Design takes no responsibility for any loss suffered due to the information distibuted in this note.

 

 June 03, 2011
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