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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

38. Referral selling



1) A person must not promote, offer, supply, agree to supply, or induce a consumer to accept any goods or services on the representation that the consumer will receive a rebate, commission or other benefit if—
a) the consumer subsequently—
i) gives the supplier the names of consumers; or
ii) otherwise assists the supplier to supply goods or services to other consumers; and
b) that rebate, commission or other benefit is contingent upon an event occurring after the consumer agrees to the transaction.


2) A statement by a consumer, whether in an agreement or otherwise, to the effect that the consumer was motivated to enter into a transaction contemplated in subsection (1) predominately for the value of the goods or services, rather than for the rebate, commission or benefit, is not a defence to an allegation that a person has contravened subsection (1).


3) This section does not apply to a franchise agreement.