Acts Online
GT Shield

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


Consumer Protection Act Regulations

5. 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.