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Ian Jacobsberg



Direct tel (27 11) 523-6091
Fax. 086-678-1151

Email: IanJacobsberg@eversheds.co.za
Website www.eversheds.co.za


Legal Attorney - Ian Jacobsberg




Law News July 2011


Smit & Grove


Prepared for Restaurant Association of SA (RASA) - 24th April 2008
Items of Concern
• Consumer Protection Bill
• Foodstuffs, Cosmetic and Disinfectants draft regulations – including Advertising to Children
• Competition Commission/Contracts

Foodstuffs,Cosmetics and Disinfectants Act – draft Regulation R642 of 20th July 2007
• Proposed introduction in regulations usually covering (from 1973 – present) of Nutritional matters.

Consumer Protection Bill
Consumer Protection Bill - issues
• Liability –retail/last seller responsibility
• Definition of Consumer – includes franchisees
• 20 day notice period for franchisees to ‘opt out of contacts’
• ‘ Bundle of Goods’ – ill defined concept – not tested in legal terms.
Foodstuffs,Cosmetics and Disinfectants (FCD) draft regulations
• Published in Government Gazette 20th July, 2007
• Expands scope of the regulations, first enacted in 1973 from food safety and labelling matters, to now incorporate nutritional, allergen control systems, advertising to children clauses and essential/non essential food definitions and labelling requirements et al
FCD ACT – Issues
• Legal Basis for law in the food field has to be science based….essential/non-essential not international accepted notion
(Nutrition Profiles are…)
• Advertising to Children is an Advertising Standards Authority matter – misplaced regulation
• “Voluntary” Nutritional Labelling for ‘back of pack’ - plus drive for healthy options
FCD Act – Action Plans
• CGCSA has a number of committees handling each task area. A QSR team has been formed, separate from Advertising/ marketing concerns.
• Meeting with DOH –one on one , plus ‘wide group’ have been part of process to ameliorate/erase the unintended consequences of the harsh draft regulation
Competition Commission
• Only major case on abuse of power to determine prices, in Nationwide Poles vs Sasol –Nationwide Poles who had faced a monopoly, arbitrary price increase of 18% had its case eventually rejected by the Appeal Process of the Competition Commission.
• The likelihood of success in challenging landlord abuses, through this mechanism, could be tardy –and possibly fail.




Here with the one day work shop programme.It is targeted at individuals who are directly or indirectly affected by the impact of the Consumer Protection Actand its implications. These individuals will be directly or indirectly involved with customer services, marketing, risk management, human resources management and legal compliance.

The Act gives consumers the right to cancel fixed term contracts,the right to receive documentation that is written in plain and understandable language, prohibiting unfair contract terms, enhancing consumer choice by requiring disclosure and information as regards prices, the right to demand quality service and good quality product, fair contract terms, safety, guarantees, and warranties.

"Producers, distributors or suppliers, will be liable for any damages in the form of death, injury, loss, or damage to property and economic loss, to the consumer or third party. This Bill decriminalises certain conduct and subjects it to administrative sanctions, while also ensuring that serious misconduct is dealt with criminally, subject to normal court procedures,"

The workshop will cover the following:

·Compliance with the Act

·Impact of theAct on your Organisation

·Consumer Rights and Protection

·Consumer Marketing


·SuppliersLiability and Accountability to Consumers


Customer Protection Bill 2007

The Bill is there to promote a fair, accessible and sustainable marketplace for consumer products and services and for that purpose to establish national norms and standards relating to consumer protection, provide for improved standards of consumer information, to prohibit certain unfair marketing and business practices, to promote responsible consumer, to promote a consistent enforcement framework relating to the protection of consumer transactions and agreements, to establish the National Consumer Commission, to repeal the Consumer Affairs ( Unfair Business  Practices) Act, 1988(Act No.71 0f 1988), the Trade Practices Act, 1976 (Act No. 76 0f 1976), the Sales and Service Matters Act, 1964(Act No. 25 0f 1964), the Business Names Act, 1960 (Act No. 27 of 1960), the Business Act, 1991 (Act No. 71 of 1991), the Price Control Act, 1964 (Act No. 25 0f 1964), and Sections 2 to 13, and sections 16 to 17 of the Merchandise Marks Act, 1941 (Act No. 17 of 1941) ; and to make consequential amendments to various other Acts, and to provide for related incidental matters.