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

Chapter 2 : Fundamental Consumer Rights

Part E : Right to fair and responsible marketing

37. Alternative work schemes

 

 

1) A person must not make a false representation with respect to the availability, or extent of availability, actual or potential profitability, risk or other material aspect of the work, business or activity involved in any arrangement of an activity for gain in terms of which one person
a) invites, solicits or requires other persons to conduct the work, business or activity from their homes;
b) represents to others as being practicable, to a considerable extent, to conduct the work, business or activity from their homes; or
c) invites, solicits or requires other persons to perform any work, business or activity, invest money, or perform any work, business or activity in association with the investment of money.

 

2) An advertisement promoting any matter contemplated in subsection (1) must—
a) be accompanied by a cautionary statement in the prescribed wording and form, disclosing the uncertainty of the extent of—
i) work, business or activity available; and
ii) income or other benefit to be derived;
b) disclose at least the following information:
i) The full name, or registered business name, of the person promoting the matter, and the address and contact numbers of that person’s primary place of conducting the business; and
ii) the nature of the work, business, activity or investment.

 

3) A person must not place an advertisement contemplated in subsection (2) otherwise than in accordance with the requirements of this section.

 

4) A person who does anything contemplated in subsection (1)(a) to (c) must not charge any person a fee in respect of the promotion or conduct of any such work, business, activity or investment, except to the extent that the person charged has been assigned and performed the contemplated work, business, activity, or made or received the contemplated investment.