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Consumer Protection Act, 2008 (Act No. 68 of 2008)

Chapter 2 : Fundamental Consumer Rights

Part F : Right to fair and honest dealing

42. Fraudulent schemes and offers

 

 

1) A person must not initiate, sponsor, promote or knowingly participate in the distribution of any communication that—
a) offers to supply, or enter into an agreement to supply, any goods or services, or offers to enter into a transaction, or invites offers to enter into a transaction; and
b) falsely states, implies or represents that—
i) the communication is authorised by another person; or
ii) the author of the communication represents another person.

 

2) A person must not directly or indirectly promote, or knowingly join, enter or participate in—
a) a fraudulent currency scheme, as described in subsection (3);
b) a fraudulent financial transaction, as described in subsection (4);
c) a fraudulent transfer of property or legal rights, as described in subsection (5); or
d) any other scheme declared by the Minister in terms of subsection (8),

or cause another person to do so.

 

3) An arrangement, agreement, practice or scheme is a fraudulent currency scheme if it involves a person—
a) with the intent to defraud another person, representing that the first person is capable of—
i) producing currency by washing, dipping or otherwise treating any substance that is not currency with a chemical substance, or exposing it to an electrical charge, or to radiation of any kind; or
ii) producing currency, or increasing a sum of money, through scientific means, invocation of any juju or use of other invisible medium; or
b) making or issuing any currency, or making representations as being capable of doing so, unless the person is an authorised producer of that currency.

 

4) An arrangement, agreement, practice or scheme is a fraudulent financial transaction if it involves any proceeds of a specified unlawful activity—
a) with intent to promote the carrying on of a specified unlawful activity; and
b) is designed in whole or in part to—
i) conceal or disguise the nature, location, source of ownership or control of the proceeds of a specified unlawful activity; or
ii) avoid a lawful transaction.

 

5) An arrangement, agreement, practice or scheme is a fraudulent transfer of property or legal rights if it involves a person, by false pretence and with the intent to defraud another person—
a) obtaining any property from that person or any third person, as the case may be; or
b) inducing that person or any third person to—
i) deliver property at the direction of the first person; or
ii) confer a benefit of any kind on any person at the direction of the first person on the understanding that the benefit has or will be paid for.

 

6) A person must not directly or indirectly represent, by false pretence or with the intent to defraud, another person to the effect that the first person is in possession of—
a) any property;
b) information relating to the whereabouts of any property or relating to any legal rights or potential legal claims; or
c) has the ability to effect the transfer of any property or to locate or determine the whereabouts of an individual.

 

7) A person must not—
a) invite another person to participate for a fee in assisting to effect a transfer of any property that the first person is not authorised to transfer; or
b) seek, demand or accept any consideration from another person in connection with any unlawful activity contemplated in this section.

 

8) The Minister, by regulation made in accordance with section 120, may declare any arrangement, agreement, practice or scheme to be a scheme contemplated in subsection (2)(d), if it is similar in purpose or effect to a scheme contemplated in that subsection.