Application of the Consumer Protection Act
When does CPA apply?
The Consumer Protection Act applies to every transaction, agreement, advertisement, production, distribution, promotion, sale or supply of goods or services. Certain transactions are exempt. For instance, where the goods or services could not reasonably be the subject of a transaction falling within the ambit of the Consumer Protection Act or where the goods or services have been exempted from the application of the Consumer Protection Act (exemption requirements and procedure are set out in s5(3) and s5(4)).
When does the Consumer Protection Act not apply?
The Consumer Protection Act does not apply in the following instances:
- Goods or services promoted or supplied to the state
- A transaction that constitutes a credit agreement under the National Credit Act, but the goods or services that are the subject of the credit agreement are not excluded from the protection given by the Consumer Protection Act
- Employment contracts
- Collective bargaining agreements
- Where the Minister of Trade and Industry has given exemption to the transactions
- Where the consumer is a juristic person whose annual turnover or asset value exceeds or equals R1 000 000.00