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National Credit Act, 2005 (Act No. 34 of 2005)

Chapter 4 : Consumer Credit Policy

Part C : Credit marketing practices

76. Advertising practices


(1) This section does not apply to an advertisement
(a) that does not make reference to a specific credit product or credit provider, and of which the dominant purpose is to promote—
(i) responsible credit practices; or
(ii) the use of credit generally;
(b) that generally promotes a specific credit provider, brand or type of credit agreement, but does not make specific reference to product price, cost or availability of credit; or
(c) by the seller of goods or services, or on the premises of such a person, if that notice or advertisement indicates only that the person is prepared to accept payment through a credit facility in respect of which another person is the credit provider.


(2) This section applies to the provider of credit that is being advertised, or the seller of any goods or services that are being advertised for purchase on credit.


(3) A person who is required to be registered as a credit provider, but who is not so registered, must not advertise the availability of credit, or of goods or services to be purchased on credit.


(4) An advertisement of the availability of credit, or of goods or services to be purchased on credit—
(a) must comply with this section;
(b) must contain any statement required by regulation;
(c) must not—
(i) advertise a form of credit that is unlawful;
(ii) be misleading, fraudulent or deceptive; or
(iii) contain any statement prohibited by regulation; and
(d) may contain a statement of comparative credit costs to the extent permitted by any applicable law or industry code of conduct, but any such statement must—
(i) show costs for each alternative being compared;
(ii) show rates of interest and all other costs of credit for each alternative;
(iii) be set out in the prescribed manner and form; and
(iv) be accompanied by the prescribed cautions or warnings concerning the use of such comparative statements.


(5) In any advertisement concerning the granting of credit, a credit provider must state or set out the interest rate and other credit costs in the prescribed manner and form.


(6) This section does not apply to developmental credit agreements if—
(a) the National Credit Regulator has pre-approved a form of advertising to be used by the credit provider concerned; and
(b) the credit provider has used only that pre-approved form of advertising in advertising or promoting goods, services or credit to the particular consumer.


(7) When pre-approving any form of advertising as contemplated in subsection (6), the National Credit Regulator must balance the need for efficiency of the credit provider with the principles of this section.