Undoubtedly the NCA results in many markets, companies, small businesses, banks and the consumer , manufacturing and services industry at large having to change their respective business practices, so as to ensure compliance with its many provisions. This will undoubtedly result in increased costs due to the additional administrative burdens which the ACT will create – and which ultimately will be passed onto the Consumer.

For example- all amendments to agreements whether written or not will now have to be reduced to writing and signed by the Consumer , and a copy thereof provided to him within a prescribed time period- if not- such amendment is of no force;

A consumer now has the right to cancel certain agreements and contracts , including ones which are continuous in nature, such as his gym membership or his cell phone contract, simply by giving the required prescribed number of days notice- ranging from 5-10 days in some cases and 1 month in others- kiss your long term contracts good bye.

Discounting and trade incentives to your customers are also a history, and so are those great loyalty programmers which are prevalent into day’s competitive market.

Promotional competition will be more rigourlesly controlled and additional labelling requirements will have to be satisfied. Overbooking and unfulfilled reservations are now subject to strict control and if breached – damages , including consequential will; be due and awarded to the aggrieved consumer. Telesales and buying your goodies over the internet are controlled and the use of customer lists and information harvesting , negative marketing and other such new age practices are outlawed.


The last biggest concern which has been raised by the Legal Brains is this- if you, the Consumer , have a complaint and seek compensation – you have a choice of forums who have the rights (jurisdiction) to hear your complaint

– the National Consumer Commission;
– an ombudsman;
– a Tribunal; or
– a Provincial consumer court.


All of the above are forums which are not in the true sense – courts of law- rather they are quasi- judicial bodies who are not obliged to follow and apply proper court procedure and due process. They can declare and set there own rules and apply their own principles and approach and are not bound to apply the audi alterim partem principle in terms of which all who are charged and who are brought before a court – are to be given a fair opportunity to be heard and to state their case and their defense to any such claim.

This will most definitely result in a separation of powers and will give rise the classical Kangaroo Court scenario where decisions and rulings will be handed down without following proper legal process.

It gets worse- these forums have the right to impose administrative penalties- being 10% of the respondent's annual turnover during the preceding financial year AND R 1 000 000.

Extract from the submission paper by Enrico du Plessis from the Marketing Assosciation ofSouth Africa