CGSO: Contracts, COVID, Cancellations and the CPA - Part 4

13 April 2022
South African Accounting Academy

The focus is on section 14 of the Consumer Protection Act (CPA).

Don’t take a sales consultant’s word for it – read the Ts & Cs.

Based on a recent complaint (regarding the early cancellation of a gym contract) that was investigated by the CGSO, they concluded (in their opinion) that suppliers are entitled to charge a reasonable fee for the early termination of contracts.

Click here to access the publication:

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Relevance to Auditors, Independent Reviewers & Accountants:

The Consumer Protection Act is yet another piece of legislation that your clients 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 to comply with the CPA and be aware of important information in this regard.

Relevance to Your clients:

As a consumer, your client also need to comply with the CPA and be aware of important information in this regard.

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