Consumer Protection Act Deferred To 31 March 2011

Fasa.co.za:

As we all waited for the implementation of the Consumer Protection Act, scheduled for the 24th October, the Minister of Trade and Industry Rob Davies, took advantage of item 2(3) (b) (a) of the CPA, 2008 (No 68 of 2008) which allows him to defer the general effective date of the Act “for a period of not more than six additional months, on the ground that additional time is required for adequate preparation of the administrative systems necessary to ensure the efficient and effective implementation of that provision.” Whilst this deferment is a nuisance the upside is that hopefully we will get to see the regulations to the Act which have provisions that apply to franchising and will have more time to study them and make the necessary comments.

Franchisors must, however, take note of those sections of the CPA that are in effect, notwithstanding the absence of regulations and the postponement of the general effective date. Ian Jacobsberg and Simone Monty of Eversheds have kindly given us some pointers on those sections of the CPA that deal with the interpretation of the CPA, its application to existing and proposed contracts, the organisation of consumer advocacy groups and the exemptions in the CPA and how they are to be applied.

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