tips from Louis the Lawyer- direct marketing

DURING the first three inserts
in this series we discussed
the balance that exists
between the common law
rights of the consumer and
that of the supplier.
Now let’s look at a common
form of acquiring and
promoting business, namely
direct marketing. Important
for suppliers to know is that
Section 16 (3) of the CPA
allows consumers to cancel
transactions as a result of
direct marketing, without
reason or penalty, as long
as it is within five business
days of the transaction’s
conclusion or of the delivery
of the goods in question.
Cancellation can be done in
writing or any other form, as
long as it is recorded.
In cases where cancellation
occurs, the supplier must
return any payment received
to the consumer and
reimbursement must be within
15 business days from the
date or notice of the return of
the goods.
Suppliers though, are not
without any recourse, and
may charge the consumer a
reasonable amount for use of
the goods while they were in
the consumer’s possession.
What to do
 Make sure you understand
what is meant by ‘direct
marketing’. It is defined in
the CPA as follows: when
a supplier ‘approaches a
person, either in person
or by mail or electronic
communication’.
Be aware of the dates. The
consumer may cancel any
transaction resulting from
direct marketing within five
working days* from the
later of the following dates:
the date the transaction is
entered into or that goods
are delivered. However, if the
transaction is subject to the
Electronic Communications
and Transactions Act, then
this section will not apply
and in terms of that Act, the
new period is seven days.
 Take note that the CPA
does not say the supplier
must receive the notice
of cancellation within five
business days of the date
that the agreement was
concluded, only that the
consumer must have given
notice by then.
Similarly, the supplier must
have completed the return
of all monies paid to the
consumer within 15 working
days* of all monies paid.
*Note that the calculation
of the days is addressed in
section 2 (6). It works as
follows: the day on which
the goods were purchased
or transaction concluded
is not counted, but the five
working days thereafter.
For example: for goods
purchased on October 21
(Friday), that Friday will not
be counted. Neither would
the 22 or 23 as these are
weekend days. The five
days would therefore start
on Monday, October 24 and
continue up to and including,
Friday, October 28.
 This section should be read
with section 32, which says
the supplier must advise the
consumer of their right to
return goods.