Written by: Wadzanai Kaziboni-Tizora

26 September 2024

The Consumer Protection Act and Refund Rights

As a consumer in South Africa, understanding your rights regarding refunds is essential. Whether you’ve purchased defective goods or received unsatisfactory services, the Consumer Protection Act 68 of 2008 (CPA) provides you with recourse. This legal framework safeguards consumers against unfair practices and ensures accountability among suppliers.

In a recent High Court ruling, a car dealership was ordered to refund a disgruntled customer following a four-year legal battle. This case highlights the importance of knowing your rights and the steps to take when seeking a refund. At Burger Huyser Attorneys, we specialise in consumer protection and can guide you through resolving disputes effectively.

When Do Consumers Have A Right To A Refund?

The Consumer Protection Act 68 of 2008 stipulates that consumers have a right to a refund under the following circumstances:

  • If the goods are defective,
  • If the goods do not match the description or the advertisement,
  • If the goods are not suitable for the purpose intended and
  • If the services do not meet the agreed-upon standards.

What Is An Implied Warranty Of Quality?

The Consumer Protection Act 68 of 2008 further stipulates that there is an implied warranty of quality as set out in Section 56 and encompasses the provisions of Section 55. Every consumer has a right to receive goods that:

  • are reasonably suitable for the purposes for which they are generally intended;
  • are of good quality;
  • are in good working order and free of any defects;
  • will be usable and durable for a reasonable period, having regard to the use to which they would normally be put and to all the surrounding circumstances of their supply;
  • comply with any applicable standards set under the Standards Act or any other public regulation.

What Are The Instances Where A Consumer May Return Goods?

The Consumer Protection Act 68 of 2008 (CPA) identifies five scenarios where consumers can return goods:

  • Unsafe or defective goods:
    • They may be returned, replaced, and refunded within 6 months of delivery.
  • Goods were delivered due to direct marketing:
    • Consumers must notify the supplier of cancellation within five business days and return the goods within 10 business days. The supplier must provide a full refund once the 10-day period from the cancellation notification has lapsed.
  • Goods not examined before delivery:
    • A full refund must be given when the goods fall short of what was contemplated in the agreement or differ on the material specification;
  • Mixed goods delivered:
    • When goods are mixed with items not ordered, the supplier bears the cost and risk of returning the goods.
  • Unsuitable goods for a particular purpose:
    • If goods do not meet the specific purpose for which they were purchased, the supplier must refund or replace them.

How Does A Consumer Qualify For A Refund?

To qualify for a refund as envisaged in the Consumer Protection Act 68 of 2008, the following conditions must be met:

  • The issue must be reported within a reasonable timeframe (usually 10 business days).
  • Proof of purchase must be provided.
  • The goods must be returned in their original condition.
  • Any additional documentation required for processing the refund must be submitted.
  • The supplier’s refund process must be adhered to.

What Are My Refund Options?

Consumers have several refund options under the Consumer Protection Act 68 of 2008 (CPA), including:

  • A consumer can elect to receive a full refund (in instances where there is no handling fee charged).
  • Replacement or repair of the defective goods.
  • Credit notes or vouchers can be given to consumers in certain circumstances.

It is important to note that consumers have the right to choose their preferred refund method and cannot be compelled to accept a credit note or voucher if they prefer a cash refund.

Can Consumers Be Disqualified From Getting A Refund?

Refund clauses in the Consumer Protection Act 68 of 2008 do not apply in certain instances, disqualifying consumers from getting a refund, including if:

  • The goods are damaged after delivery.
  • The goods have been used or altered by the consumer.
  • Services that have been partially performed.

Some service providers stipulate that they do not offer refunds, which is a practice in direct contravention of the Consumer Protection Act 68 of 2008.

What Happens If You Opt For Goods To Be Repaired Instead Of Getting A Refund?

Section 56(3) of the Consumer Protection Act 68 of 2008 states:

“If a supplier repairs any particular goods or any component of such goods, and within three months after the repair, the failure, defect, or unsafe feature has not been remedied, or a further failure, defect, or unsafe feature is discovered, the supplier must (a) replace the goods or (b) refund to the consumer the price paid for the goods.”

Consumers who choose repairs are still protected if the issue persists, ensuring their investment is safeguarded. The consumer must be refunded fully if they do not elect for the goods to be replaced.

What Do You Do When The Supplier Refuses To Give You A Refund?

While the Consumer Protection Act does not grant an automatic right to a refund, disputes should be assessed on their merits. Should a supplier refuse for a refund to be processed or a dispute arises in this regard:

  • Contact the National Consumer Commission (NCC):
  • Lodge a complaint detailing the dispute.
  • File a complaint with the Consumer Tribunal:
  • The tribunal will investigate and adjudicate the matter.

These avenues ensure consumers can pursue their rights effectively and hold suppliers accountable.

Why Is It Important To Know Your Refund Rights?

It is important to know your refund rights under the Consumer Protection Act, as it empowers consumers to:

  • Make informed purchasing decisions.
  • Ensure fair treatment by suppliers.
  • Confidently navigate refund processes.

The Consumer Protection Act 68 of 2008 is a vital tool for ensuring fairness and accountability in transactions. By understanding your refund rights, you can safeguard your interests and hold suppliers to their obligations. Consumers should remember to always inspect goods thoroughly before accepting them, retain proof of their purchases, and report any issues with purchased goods promptly to avoid unnecessary delays.

If you’ve encountered challenges with refunds or believe your rights have been violated, Burger Huyser Attorneys is here to help. Our expert attorneys can guide you through the legal process, ensuring you receive the justice you deserve. Contact us today for professional advice and support.

DISCLAIMER: Information provided in this article does not and is not intended to constitute legal advice.

Contact Burger Huyser Attorneys, and book a consultation.

To speak to one of our experienced attorneys in South Africa for immediate assistance, contact us on the numbers below:

Randburg call 061 516 6878; Roodepoort call 061 516 0091; Sandton call 064 555 3358 Pretoria call 064 548 4838;

Centurion call 061 516 7117; Alberton call 061 515 4699Bedfordview call 061 536 3223

DISCLAIMER: Information provided in this article does not, and is not intended to constitute legal advice. READ MORE