Consumer Right No. 5

Right to Fair and Responsible Marketing

What does this mean for the ordinary consumer?

Your right to protection against bait marketing:

• Suppliers are not permitted to mislead consumers in respect of pricing, the nature, properties, advantages or uses of goods or services advertised, if such goods or services are not actually available for purchase or procurement in accordance with these standards.
• Suppliers are obliged to include limitations in respect of the availability of goods or services when advertising such items, and honour such agreements.

Your right to protection against negative option marketing:

• Suppliers are not permitted to promote any goods or services or automatically enter consumers into agreements for the supply of goods or services, i.e. if consumers receive unwanted or unsolicited goods or services, they are under no obligation to pay for these goods or services.

Your right to protection against direct marketing:

• Suppliers or service providers that directly market any goods or services to consumers must inform them of their right to cancel the agreements within the cooling-off period of five (5) business days.
• Suppliers or service providers, which directly market any unsolicited goods or services to consumers, are not permitted to solicit payment for these items, subject to certain conditions.

Your right to protection in catalogue marketing:

• Suppliers are required to disclose the following:
  • Supplier name and registration/licence number;
  • Address and contact details;
  • Sales records;
  • Currency for sales;
  • Delivery arrangements;
  • Cancellation, return, exchange and refund policy; and
  • Instructions on lodging a complaint.

NB: Catalogue marketing refers to an agreement entered into by telephone (initiated by the consumer), fax or postal order, where the consumer is not given the opportunity to inspect goods.

Your right to protection in terms of trade coupons and similar promotions:

• Persons are not permitted to make promotional offers with the intention of not fulfilling them, or fulfilling them in a manner other than as offered.
• Persons making promotional offers are required to adhere to the following:
  • Nature of price, reward, gift, free goods or services, price reduction, enhancement of quality or quantity of goods, discounted of free thing being offered;
  • Goods or services to which the offer relates;
  • Steps required by consumers to accept the offers or receive the benefits of the offers;
  • Particulars of any person from whom, any place where, and any date and time on or at which, the consumer may receive the prize, reward, gift, free good or service, price reduction or concession, enhancement of quantity or quality of goods or services or other discounted or free thing;
  • Ensure that the supply of the particular prize, reward, gift, free or reduced price good, or the capacity to provide enhanced quality or services, is sufficient to accommodate all reasonably anticipated demands resulting from the offer;
  • Not limit or restrict capacity to supply any such goods or services in response to the acceptance of the offer, on any basis other than that it applies to such a supply in exchange for any other form of consideration; and
  • Not require the consumer to accept an inferior quality of any such goods or services than those generally available to any other consumer on the same date who tenders a different form of consideration; and
  • Not impose any monetary charge for the administration, processing or handling of a transaction, in respect of which the consumer tenders a trade coupon – this only applies where a membership fee is being paid.

Your right to protection in customer loyalty programmes:

• Persons must not offer participation in a loyalty programme, or offer any loyalty credit or award with the intention of not providing it or providing it in a manner other than as offered.
• Any document setting out an offer must clearly state the following:
  • Nature of the programme, credit or award being offered;
  • Goods or services to which the offer relates;
  • Steps required by consumers to participate in the programme or receive any benefits in terms of the programme; and
  • Contact details where consumers may gain access to the programme, or any loyalty credit or awards in terms of the programme.

NB: Customer loyalty programmes are loyalty credits or awards, which are a legal medium of exchange when offered or tendered as consideration for any goods or services offered, or transactions contemplated, in terms of such loyalty programmes/credits/awards.