WHEN considering how the issue
of non-refundable deposits and
cancellation fees as contained in
the CPA applies to you and your
business, most important is to first
look at what common law states as
this will apply, whether or not you
need to apply the CPA. It is my view
that the CPA has not revoked the
common law, as such common law
duties such as ‘Buyer Beware’ and
‘Signatory Beware’ should still be
applied. This is stated in Section
2(10) under Interpretation.
This means that travellers cannot
simply sign documents blindly and
then when they find themselves
in a pickle, cancel and expect the
CPA to come to their rescue. They
have to be responsible – read all
the terms and conditions, ask
questions and make sure they
are satisfied with the explanation
before they sign and pay for their
trip. Similarly the travel agent is
required to explain (in more detail
than before the CPA) the ins and
outs of a trip, especially aspects
such as non-refundable deposits
and cancellation fees.
The CPA does not mean the end
of the common law, but rather that
common law will be developed
within the context of the CPA,
bearing in mind the new safeguards
it contains as stated in Section
4(2) under Consumer Rights.
What to do?
Revisit your documents (booking
forms, quotes and T&Cs);
Be aware of your rights as a
supplier as detailed in the CPA;
Ensure that you have brought all
onerous aspects of the journey
(such as cancellation, deposits,
visas, passports, etc) to the
attention of the traveller at least
once during your relationship
with them. Get them to initial or
at least acknowledge in some
way the pertinent clauses/
that you’ve brought to their
attention – especially with firsttime
travellers. DO NOT assume
anything!
Don’t panic when you receive
a consumer complaint and/or
letter from the consumer
commissioner!
Tips from Louis the Lawyer – CPA
Comments | 0
