Written by DIONNE JACKSON
24 February 2024
What are the rights of the consumer regarding incorrect prices on an item for sale?
Have you ever experienced a pang of confusion when the price on the tag didn’t match the price charged at the checkout? It’s easy to feel like a small fish in a big pond when dealing with the suppliers responsible for the incorrect display of their prices, but fear not! This article dives into how the Consumer Protection Act protects consumer rights, particularly narrowing the reader’s focus to how this Act transforms a bewildered shopper into an empowered consumer when display prices go awry.
What is the Consumer Protection Act?
The Consumer Protection Act (hereinafter “the Act”) is a piece of legislation aimed at safeguarding consumer rights in their transactions with suppliers by:
- ensuring fair practices in product safety, pricing, advertising, contracts, dispute resolution, and more;
- granting consumers rights such as safety, information, choice, redress, and education;
- setting standards,
- mandating accurate labelling;
- providing avenues for dispute resolution; and
- ultimately fostering a marketplace where consumers can engage confidently, knowing their rights are protected.
How is a Displayed Price Defined Within The Context Of The Consumer Protection Act?
Section 23(5) of the Act provides the following comprehensive criteria for what constitutes a displayed price:
- A displayed price must be physically attached, affixed, written, printed, stamped, or located on the goods themselves or on a related item used in connection with the goods, such as a band, ticket, covering, label, package, reel, shelf, or any other item utilised for display or sale alongside the goods.
- Additionally, a price is considered displayed if it is represented in a manner that reasonably implies that price is the applicable price for the goods or services in question.
- Furthermore, a price can be deemed displayed if it is published in relation to corresponding goods in catalogues, brochures, circulars, or similar forms of publication accessible to consumers or the general public. In this case, the following conditions apply:
- If a specified time is provided after which the goods in the publication may not be sold at a specific price, that time must not yet have elapsed or
- In cases where the current price displayed was published long ago, the displayed price must still be considered relevant in the current circumstances.
What Happens When More Than One Price is Displayed on a Product?
When goods or services display more than one price, consumers often need help determining the appropriate price they need to pay. Fortunately, Section 23(6) of the Consumer Protection Act serves as a beacon of clarity, offering precise regulations to navigate these scenarios. This provision stipulates that, unless specified otherwise in subsections 7 to 10, it is expressly prohibited for a supplier to compel a consumer to pay a specific price if that price:
- exceeds the price conspicuously displayed for the respective goods or services, or
- surpasses the lowest price displayed among multiple concurrently exhibited prices.
These regulatory measures are implemented to uphold fairness and transparency in consumer transactions, ensuring that consumers are not subjected to undue financial burdens. By stipulating that consumers are entitled to pay the lower or lowest of the displayed prices when discrepancies arise, Section 23(6) of the Act reinforces the principle of consumer protection.
It is essential to note that exceptions exist where subsection (6) provisions do not apply, necessitating a careful examination of the specific circumstances to determine the appropriate course of action. Thus, while Section 23(6) provides invaluable guidance in resolving pricing discrepancies, its application requires a detailed understanding of the broader legal framework and the unique factors influencing each case.
What Are the Exceptions to Subsections 6 and 9 of the Consumer Protection Act?
Subsection 6 of the Consumer Protection Act outlines specific scenarios where its regulations do not apply, including:
- Public regulations: Subsection 6 does not apply if public regulations regulate pricing, which includes government-placed regulations such as alcohol and sugar tax.
- Obscured prices: If a new displayed price fully covers a previously displayed price, the new price is regarded as definitive, bypassing Subsection 6.
An exemption for Subsection 9 exists that determines at if a displayed price contains an obvious and inadvertent error, the supplier is not bound to the displayed price by Subsection (6) if:
- The error is promptly corrected.
- Reasonable steps are taken to inform affected consumers of the mistake and provide the correct price.
The exemptions mentioned above have the following implications for consumer rights:
- Corrected error: Once an obvious error has been rectified and the relevant consumers have been notified, Subsection 6 can no longer bind the supplier to the incorrect price that was initially displayed on the goods.
- Consumer rights: Consumers cannot demand to pay the lowest displayed price after being informed of the error, and the supplier has corrected it.
- Awareness: Consumers retain the right to pay the lowest displayed price if they were unaware of the pricing error before agreeing to purchase the goods or services.
How Do I Enforce My Rights In Terms of The Consumer Protection Act?
Individuals possess the legal entitlement to seek recourse through various channels whether they act on their own behalf, as a duly authorised representative, as a members of a collective group or class, or in the public interest with the court’s or tribunal’s approval. Moreover, associations vested with the responsibility of safeguarding the interests and welfare of their members also hold the prerogative to seek recourse through these channels to advocate for and ensure the enforcement of consumer rights. The channels mentioned above include:
- South African courts;
- the National Consumer Tribunal and
- the National Consumer Commission.
The right to seek recourse through these channels is paramount for enforcing the comprehensive rights enshrined within the Consumer Protection Act. The opportunity for associations to approach these bodies extends the reach of consumer protection measures, allowing for collective representation and action in pursuit of fair treatment and adherence to consumer rights principles.
Contact Burger Huyser Attorneys’ experienced team of attorneys to assist you with the legal process of addressing a price discrepancy in terms of the Consumer Protection Act today!
DISCLAIMER: Information provided in this article does not, and is not intended to constitute legal advice. READ MORE
