FNB Franchise & Leadership Summit: What you should know about the CPA
Presented by Janusz Luterek, Attorney: Hahn and Hahn Attorneys
Janusz holds degrees in Chemical Engineering and Law. He is a registered attorney, patent attorney and engineer and specialises in intellectual property, food and consumer law.
Janusz started off with the assertion that although the Consumer Protection Act (CPA) has been with us since April 2011, confusion regarding its impact on franchise arrangements remains. The reality that in terms of the Act, South African consumers are among the best-protected world-wide is widely ignored, probably because up to now, enforcement has been lax. However, the Act does exist, its enforcers have draconian powers and sooner rather than later will be enforced. In this context, Janusz referred to the implementation of the Competition Act. When it was new, it seemed to have little impact but now that the competition authorities have settled in, cases processed relatively swiftly. Fines meted out to offenders can amount to millions of rands.
When does the CPA apply?
To be meaningful, the answer must be given in two parts. Please note that due to space constraints, the following are extracts only.