R3m turnover cut-off proposed for Consumer Protection Act


Businesses making a turnover of over R3 million will not be protected by the Consumer Protection Act, says Trade and Industry Minister Rob Davies.

Minister Rob Davies

The need to protect small business and the definition of a small business in terms of the National Small Business Amendment Act, No. 26 of 2003 were some of the considerations taken by Davies in determining the threshold.

The Act does not apply to transactions where the consumer is a juristic person whose asset value or turnover at the time of the transaction equals or exceeds the threshold value determined by the minister.

A juristic person includes a partnership, association or trust as defined in the Trust Property Act of 1988.

The threshold determination has been published in the Government Gazette for public comment, even though the Act does not require of the minister to issue the threshold for public comment.

"It is important that businesses should know beforehand whether they will be protected under the Act or [if] their customers who are juristic persons will be protected under the Act," said the department's spokesperson Sidwell Moloantoa Medupe.

The publication of the threshold in the Gazette will give business time to implement compliance procedures before the effective date of the Act on 1 April 2011.

Written submissions can be made to [email protected] or faxed to (012) 394 2383. People can also contact Ntutuzelo Vananda at (012) 394 1383 by 31 October. BuaNews