Know your consumer lingo

Navigating consumer agreements and advertisements can be a daunting task, often leaving individuals confused by the terminology used. Certain terms frequently appear in consumer agreements and advertisements, yet their meaning is not known by many consumers. As a firm specializing in consumer law, we recognise the importance of empowering consumers with clear and concise information. To this end, we have created a comprehensive glossary designed to define terms that consumers frequently encounter in consumer agreements, the Consumer Protection Act (CPA), advertisements, and even our own blogs.

This glossary provides straightforward definitions of key terms and concepts, offering you a valuable resource and enabling you to better exercise your rights.

Advertisement: A communication message in the form of a picture, sign, short film, song, etc intended to inform people about something or influence them to buy, try, or do something. Also see DIRECT MARKETING.

Agreement: An arrangement or understanding between two or more parties that establishes a legal relationship between them, also referred to as a contract.

Batch: A group of products that are produced at the same time or in one operation. When there’s a defect or contamination of a product which necessitates the product being recalled by the manufacturer, the recall will be done with reference to the affected batches.

Black Friday: A shopping event usually held on the last Friday of November, characterised by retailers offering reduced prices both online and in store on a range of products. Consumers are warned to check carefully whether Black Friday offers are really discounted.

Business: The continual promotion or supply of goods or services. This is important because the CPA applies whenever the supplier is acting in the “ordinary course of business” i.e. whenever the supplier is promoting or supplying goods or services and it’s not a once-off- so the CPA will apply even when the supplier is running a side hustle like letting an investment property.

Complainant: Any person who has filed a complaint with the National Consumer Commission.

Consideration: Anything of value, such as money or services, that is given and accepted in exchange for goods or services.

Consumer: A person to whom goods or services are promoted or supplied by a supplier in the ordinary course of the supplier’s business.

Consumer Court: A tribunal that has been established in terms of Provincial legislation, tasked with hearing cases and making orders relating to consumer complaints and disputes with suppliers in a particular Province. They usually have jurisdiction over disputes if both the consumer and the supplier are based in that province. Consumer courts are often a great quick and cheap way of getting a dispute heard.

Cooling-off period: If you’ve bought goods or services as a result of DIRECT MARKETING, you can return the goods and get your money back, if you do it within the cooling-off period, which is 5 business days. If you bought goods online and paid online, the cooling-off period is 7 days.

Direct Marketing: To approach a person, either in person or by mail or electronic communication, for the purpose of promoting or offering to supply any goods or services in the ordinary course of business. If you bought a product as a result of direct marketing, you have the right to return it within the cooling-off period and get your money back.

Distributor: A person who in the ordinary course of business, is supplied with goods by a producer of such goods or another distributor, and in turn supplies those goods to either another distributor or retailer.

Electronic Communication: Communication through electronic means including telephone, fax, SMS, email or similar technology or device.

Franchise: A business arrangement where one party, grants another party the right to use its brand, business model and proprietary knowledge in exchange for a fee. Examples of franchises are Bootlegger’s, Pick ‘n Pay, PG Glass, Pam Golding and Courier Guy.

Goods: Anything that is promoted or supplied for human consumption, any tangible object, including any medium on which anything is or may be written, any literature, music or other intangible product written or recorded on any medium or a licence to use such intangible product, a legal interest in land or any other immovable property and gas, water and electricity.

Importer: A person who brings goods or causes them to be brought from outside the country into the country, with the intention of making them available for supply in the ordinary course of business.

Intermediary: A person who in the ordinary course of business and for financial gain, represents another person with respect to the actual or potential supply of goods or services, accepts possession of any goods from a person for the purpose of offering the goods for sale or sells goods belonging to a third person or a service to be supplied by a third person.

Juristic Person: a legal body, like a close corporation (CC) or company, and also includes a body corporate, a partnership or association or a trust.

Legal Interest Rate: The highest rate of interest that can be legally charged on any type of debt. The current legal interest rate is 11.75% per annum (October 2024_.

Loyalty Credit or Award: Any benefit accruing to a consumer, a right to any goods, service or other benefit granted to a consumer or credit, points or other tangible or intangible thing which when accumulated, entitles the holder to assert a claim for any goods, service or other benefit, allocated to a consumer in terms of a loyalty programme.

Loyalty Programme: Any arrangement or scheme in the ordinary course of business, in terms of which a supplier of goods or services, offers or grants to a consumer any loyalty credit or award in connection with a transaction or agreement.

Market: To market a product or service, is to promote or supply any goods or services.

Minister of Trade and Industry: The member of the Cabinet responsible for consumer protection matters.

National Consumer Commission: A regulatory body, established in terms of the CPA, responsible for protecting the interests of consumers and ensuring accessible, transparent and efficient redress for consumers, by conducting investigations against suppliers that are engaging in prohibited conduct, referring matters for prosecution to the National Consumer Tribunal and promoting the resolution of disputes between consumers and suppliers.

No-fault liability: The liability to compensate another person for harm, irrespective of any carelessness or negligence on the part of the person required to pay. An example of no-fault liability is in Section 61 of the CPA, in terms of which a producer or importer, distributor or retailer of goods is liable for harm caused as a result of the supply of unsafe goods; a product failure, defect or hazard in goods; or insufficient instructions or warnings to the consumer relating to any hazard arising from or associated with the use of the goods, irrespective of whether the harm is the result of negligence on the part of any of these parties.

Ombud: An independent and impartial office responsible for investigating any complaint or dispute arising out of an agreement or transaction between a consumer and a supplier who is subject to the jurisdiction of an ombud in terms of any national legislation. The Motor Industry Ombud, Consumer Goods and Services Ombud, Banking Ombud, CSOS and many other play a role in consumer protection, but it’s worthwhile to keep in mind that they are financed by the industry they are supposed to police, so they are not always unbiased.

Producer: A person who grows, nurtures, manufactures or otherwise produces goods within South Africa with the intention of making them available for supply in the ordinary course of business.

Promote: Advertise, display or offer to supply any goods or services in the ordinary course of business, to all or part of the public for consideration.

Pyramid Scheme: An arrangement, agreement or scheme in terms of which participants receive compensation derived primarily from their recruitment of other persons as participants, rather than from the sale of any goods or services.

Recall: The action of retrieving a defective or unsafe product from the market by requesting consumers to return the defective or unsafe product.

Repo rate: The interest rate at which the South African Reserve Bank lends money to commercial banks.

Retailer: A person who in the ordinary course of business, supplies goods to a consumer.

Scam: A dishonest, deceptive or fraudulent scheme with the purpose of taking money or something of value from people.

Service: any work or undertaking performed by one person for the direct or indirect benefit of another.

Service Provider: A person who promotes, supplies or offers to supply any service.

Shrinkflation: The practice of reducing a product’s size or quantity while maintaining the same price.

Supplier: A person who markets any goods or services- see the definition of MARKET above.

Transaction: An agreement between a person acting in the ordinary course of business and another person for the supply or potential supply of any goods or services in exchange for consideration.

Tribunal: The National Consumer Tribunal, which is an independent adjudicative body, established in terms of the National Credit Act 34 of 2005. The Tribunal’s mandate is to hear and make decisions on cases involving consumers, suppliers, service providers, credit providers, debt counsellors and credit bureaus.

Unconscionable: Conduct that is unethical or improper to a degree that would shock the conscience of a reasonable person.

Used goods: Goods that have been previously supplied to a consumer. The CPA applies to used goods as well as new goods.