Retail Pack

Retailers must have a documented complaints handling procedure compliant with the CPA. The Consumer Goods and Services Ombud (CGSO) code of conduct requires CGSO participants to: (a) acknowledge consumer complaints within 3 business days; (b) investigate and resolve within 15 business days; (c) provide reasons for decisions in writing; (d) inform consumers of their right to escalate to the CGSO or NCC if unsatisfied. Retailers must maintain a complaints register recording: date, consumer details, nature of complaint, outcome, and resolution date. The NCC may require production of complaints records during investigations. CGSO membership is voluntary but recommended — membership provides access to alternative dispute resolution and demonstrates commitment to consumer rights. Penalty: Failure to address consumer complaints may result in NCC compliance notices and fines up to R1 million or 10% of annual turnover. Reference: CPA 68 of 2008, s69-71; CGSO Code of Conduct.

Retailers must comply with the Consumer Protection Act 68 of 2008 across multiple areas: (a) Right to return goods — consumers may return goods within 6 months for repair, replacement, or refund if the goods are defective, unsafe, or not fit for purpose (s56). Cooling-off period of 5 business days for direct marketing sales (s16). (b) Implied warranty of quality — all goods sold must be of good quality, free from defects, suitable for intended purpose, and durable for a reasonable period (s55). (c) Product disclosure — all material facts about goods must be disclosed. Product descriptions must not be misleading (s41). Price must be displayed in ZAR inclusive of VAT (s23). Penalty: NCC may issue compliance notices. Fines up to R1 million or 10% of annual turnover (whichever is greater) for prohibited conduct (s112). Reference: Consumer Protection Act 68 of 2008, s16, s23, s41, s55-56.

Retailers offering lay-by agreements must comply with CPA section 62: (a) The agreement must be in writing (or electronic record); (b) Must specify: goods description, total price, instalment amounts and dates, delivery date, and cancellation terms; (c) The retailer must keep the goods in good condition until delivery; (d) If the consumer cancels, the retailer may retain a maximum of 1% of the purchase price (not the deposit or instalments paid); (e) If the retailer fails to deliver, the consumer is entitled to a full refund plus interest. Lay-by agreements are NOT credit agreements (no NCA registration required) but are regulated under the CPA. Penalty: Non-compliance with s62 — NCC compliance notice, fine up to R1 million or 10% of annual turnover (s112). Reference: Consumer Protection Act 68 of 2008, s62; CPA Regulations, Reg 32.

Retailers offering credit, instalment sales, or account facilities must comply with the National Credit Act 34 of 2005. Requirements: (a) Register as a credit provider with the National Credit Regulator (NCR) if total principal debt of all outstanding credit agreements exceeds R0 (all credit providers must register); (b) Conduct affordability assessments before granting credit (s81); (c) Provide consumers with a pre-agreement statement and quotation (s92-93); (d) Maximum prescribed interest rates and fees apply (NCA Regulations); (e) Submit consumer credit data to registered credit bureaux; (f) Comply with debt review procedures if consumer is over-indebted (s86-88). Lay-by agreements are excluded from the NCA but instalment sale agreements are regulated. Penalty: Non-compliance — NCR administrative fine up to R1 million; tribunal may declare agreements unlawful (s150-151). Reference: National Credit Act 34 of 2005, s40, s81-93.

Retailers conducting electronic transactions (e-commerce, online stores) must comply with the Electronic Communications and Transactions Act 25 of 2002. Requirements: (a) Website must display prescribed information: full name and legal status, physical address, contact details, registration number, and official email (s43); (b) Terms and conditions must be accessible before the transaction; (c) Consumers must be able to review, correct, and withdraw from the transaction before final submission (s44); (d) Electronic transaction confirmation must be sent within prescribed time; (e) Consumers have a cooling-off period of 7 days to cancel without reason and receive a full refund (s44(1)); (f) Privacy and data protection of personal information (aligned with POPIA). Penalty: Non-compliance — fine or imprisonment up to 12 months. CPA penalties also apply (up to R1 million or 10% of turnover). Reference: ECT Act 25 of 2002, s43-44.

Retailers must comply with CPA price display requirements: (a) All goods must display a price in South African Rand (ZAR) inclusive of VAT (s23(1)); (b) The displayed price is the price the consumer must pay — the retailer may not charge more than the displayed price (s23(2)); (c) If two different prices are displayed, the lower price applies (s23(6)); (d) Prices must not be misleading or deceptive (s41); (e) Unit pricing for pre-packed goods (price per kg, per litre) is recommended per CPA Regulations; (f) Sale or reduced prices must show the original price and the sale price. Overcharging (charging more than the displayed price) is a prohibited practice. Penalty: Overcharging or misleading pricing — compliance notice, fine up to R1 million or 10% of annual turnover (CPA s112). Reference: Consumer Protection Act 68 of 2008, s23, s41.

Products sold at retail must comply with NRCS compulsory specifications for labelling and safety. Key compulsory specifications include: (a) VC 8055 — Canned meat products; (b) VC 8010 — Canned fish; (c) VC 8034 — Electrical and electronic apparatus; (d) VC 8043 — Paraffin stoves and heaters; (e) VC 8012 — Motor vehicle safety (tyres, glass); (f) VC 9008 — Frozen fish and marine products. Products falling under compulsory specifications must carry the NRCS mark and meet prescribed safety standards. Retailers are liable for selling non-compliant products. Import of non-compliant goods may be stopped at the border by customs. Penalty: Selling products not meeting compulsory specifications — fine up to R50,000 or imprisonment up to 2 years (NRCS Act s15). Reference: National Regulator for Compulsory Specifications Act 5 of 2008.

Retail promotional competitions (lucky draws, scratch-and-win, enter-to-win) with a total prize value exceeding R100,000 require registration with the National Lotteries Commission (NLC) under the Lotteries Act 57 of 1997 as amended by the CPA. CPA section 36 regulates promotional competitions and requires: (a) clear disclosure of competition rules, entry dates, and prize details; (b) no purchase requirement may be the only method of entry (free entry alternative must be available); (c) prizes must be awarded within 28 days of the draw; (d) results must be published or winners notified. Penalty: Conducting an unlawful competition — fine up to R1 million (CPA s112). NLC may also take action under Lotteries Act s58. Reference: CPA 68 of 2008, s36; Lotteries Act 57 of 1997; CPA Regulations, Reg 11.

All measuring instruments used in trade (scales, balances, fuel dispensers, flow meters) must be verified and stamped by the NRCS or an accredited verification officer under the Trade Metrology Act 77 of 1973. Requirements: (a) All instruments must be of an approved pattern (type approval); (b) Initial verification before first use; (c) Re-verification after repair or adjustment; (d) Periodic re-verification as prescribed (typically annually for retail scales). Pre-packed goods must comply with net content requirements — average system or minimum system per Trade Metrology Regulations. NRCS inspectors may conduct random checks at any retail premises. Penalty: Using an unverified instrument in trade — fine up to R40,000 or imprisonment up to 2 years (s33). Selling short measure — fine up to R20,000 or imprisonment up to 1 year (s26). Reference: Trade Metrology Act 77 of 1973, s15-26.