Advance Bookings: Consumer Protection Act info and tips

10 June 2022
South African Accounting Academy

Some interesting facts that both suppliers and consumers must be aware of in respect of Section 17 of the CPA:

Consumers have a right to cancel advance booking, reservations or order for any goods or services to be supplied
Supplier who accepts reservation to supply goods or services may:

Require payment of a reasonable deposit in advance
Impose a reasonable charge for cancellation of the order or booking

A supplier may not impose any cancellation fee in respect of a booking, if the consumer is unable to honour the booking, because of the death or hospitalisation of the person for whom, or for whose benefit the booking was made.

Click here to access the tips as part of the CGSO’s Did you know? series:

https://www.linkedin.com/company/consumer-goods-services-ombudsman/posts/?feedView=all

Relevance to Auditors, Independent Reviewers & Accountants:

The Consumer Protection Act is yet another piece of legislation that your clients (as suppliers of goods and services) must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
As a consumer, you also need be aware of your rights and responsibilities in terms of the Consumer Protection Act – especially in respect of Advance Bookings.

Relevance to Your clients:

A supplier of relevant goods and services has a duty to comply with the Consumer Protection Act, otherwise they could be held liable.
As an individual, a consumer has a duty to be aware of his/her rights and responsibilities in terms of the Consumer Protection Act – especially in respect of Advance Bookings.

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