Intellectual Property Rights from Publicly Financed Research and
R 385
Consumer Protection Act, 2008 (Act No. 68 of 2008)RegulationsConsumer Protection Act Regulations5. Maximum duration for fixed-term consumer agreements |
| 1) | For purposes of section 14(4)(a) of the Act, the maximum period of a fixed-term consumer agreement is 24 months from the date of signature by the consumer— |
| a) | unless such longer period is expressly agreed with the consumer and the supplier can show a demonstrable financial benefit to the consumer; |
| b) | unless differently provided for by regulation in respect of a specific type of agreement, type of consumer, sector or industry; or |
| c) | as provided for in an industry code contemplated in section 82 of the Act in respect of specific type of agreement, type of consumer, sector or industry. |
| 2) | For purposes of section 14(3), a reasonable credit or charge as contemplated in section 14(4)(c) may not exceed a reasonable amount, taking into account— |
| a) | the amount which the consumer is still liable for to the supplier up to the date of cancellation; |
| b) | the value of the transaction up to cancellation; |
| c) | the value of the goods which will remain in the possession of the consumer after cancellation; |
| d) | the value of the goods that are returned to the supplier; |
| e) | the duration of the consumer agreement as initially agreed; |
| f) | losses suffered or benefits accrued by consumer as a result of the consumer entering into the consumer agreement; |
| g) | the nature of the goods or services that were reserved or booked; |
| h) | the length of notice of cancellation provided by the consumer; |
| i) | the reasonable potential for the service provider, acting diligently, to find an alternative consumer between the time of receiving the cancellation notice and the time of the cancelled reservation; and |
| j) | the general practice of the relevant industry. |
| 3) | Notwithstanding subregulation (2) above, the supplier may not charge a charge which would have the effect of negating the consumer's right to cancel a fixed term consumer agreement as afforded to the consumer by the Act. |
