May 3, 2022

Cancellation Due To Misrepresentation Or Deception And Available Remedies

There have been many cases where consumers have entered into contracts with suppliers and later realised that a salesperson has misrepresented the product or service. Usually, contracts will provide the steps and procedures that need to be taken when a party to the contract wishes to cancel the contract.

The Consumer Protection Act (the “Act”) also makes provisions for cancelling an agreement under certain circumstances. The consumer should not have to suffer undue hardship due to cancellation. One’s sense of fairness and justice should always be used in these circumstances.

Before a consumer can rely on the Act, they need to determine if it applies to the transaction. The Act defines a consumer as any person to whom goods and services are marketed, a user of the supplier’s goods enters into a transaction with the supplier or service provider of any services and products.

In terms of Section 41(1) of the Act, a supplier must not, by words or conduct:

  • directly or indirectly express or imply a false, misleading or deceptive representation concerning a material fact to a consumer;
  • use exaggeration, innuendo or ambiguity as to a material fact, or fail to disclose a material fact if that failure amounts to a deception; or
  • fail to correct an apparent misapprehension on the part of a consumer,

amounting to a false, misleading or deceptive representation or permit or require any other person to do so on behalf of the supplier.

Should this Section be transgressed, the transaction will be void, and certain remedies and recourse are available to the consumer.

When goods or services were marketed to a consumer in a manner which did not comply with the Act, the consumer may file a complaint with the National Consumer Commission, National Consumer Tribunal or an Ombud, in which case the supplier may be issued with penalties.

Should you require more information regarding the Consumer Protection act and the application thereof, kindly contact your nearest SEESA office, Alternatively, leave your name on our website, and we will contact you.

About The Author:

Daniel Brandsen started his career in January 2022 at the SEESA Upington branch. He is currently a Labour, PayTime and Consumer Protection and POPI Legal Advisor. Daniel obtained his Bachelor of Laws at the University of the Free State in 2016. He thereafter completed his articles and was admitted as an Attorney of the High Court of South Africa.

Resources:

  • Consumer Protection Act 68 of 2008.