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Report 69 Business Practices Committee

Notice 1148 of 1999

 

 

Department of Trade and Industry

Consumer Affairs (Unfair Business Practices) Act, 1988

 

I, Alexander Erwin, Minister of Trade and Industry, after having considered a report by the Business Practices Committee in relation to an investigation of which notice was given in General Notice 3108 of 1998 published in Government Gazette No. 19622 of 24 December 1998, which report was published in Notice 1147 in Government Gazette No, 20186 of 14 June 1999, and being of the opinion that a harmful business practice exists which is not justified in the public interest, do hereby exercise my powers in terms of section 12(1)(b) of the Consumer Affairs (Unfair Business Practices) Act, 1988 (Act No. 71 of 1988), as set out in the Schedule.

 

 

A Erwin

Minister of Trade and Industry

 

Schedule

 

In this notice, unless the context indicates otherwise--

 

"harmful business practice" means whereby any person, in the course of the business of any of the persons identified under "parties" ,directly and I or indirectly:

a) invites any person (hereinafter referred to as the "participating person") to enter into any arrangement with any of the aforesaid persons the terms whereof include any provision which have the effect that the participating person is obliged to make a payment of a financial consideration with the prospect of such participating person receiving payment or other money-related benefits, directly or indirectly, from his/her participation or that of the aforesaid persons in the recruitment of other persons to enter into similar arrangements with any of the persons identified under "parties";
b) enters into any arrangement with any person the terms whereof includes any provision which has the effect that the participating person is obliged to make a payment of a financial consideration with the prospect of such participating person receiving payment or other money-related benefits, directly or indirectly, from his/her participation or that of the aforesaid persons in the recruitment of other persons to enter into similar arrangements with any of the persons identified under "parties";
c) accept any financial consideration from any person in terms of any arrangement which financial consideration is used in part or in full to fulfil the obligations of either party to make payment to a third party who has entered into a similar arrangement with any of the persons identified under "parties"; and
d) make any payment of any financial consideration or give any money-related benefit, directly or indirectly, to any person in terms of any arrangement as prohibited in terms of paragraph (b) or (c) above.

 

"the parties" mean Inner Circle South Africa, Charles Frederick Venter and any participant, agent, representative, employee or any other person on their behalf.

 

1) The harmful business practice is hereby declared unlawful in respect of the parties.

 

2) This notice shall come into operation on date of publication.