Consumer’s right to a Cooling off period after direct marketing and rights to return the goods in terms of Sections 16(3), 16(4) and Section 20(2) of the Consumer Protection Act 68 of 2008
Section 16 (3) states that:
“A consumer may rescind a transaction resulting from any direct marketing without reason or penalty, by notice to the supplier in writing, or other recorded manner and form, within 5 business days after the later of the date which –
(a) The transaction or agreement was concluded; or
(b) The goods that were the subject of the transaction were delivered to the consumer”
Section 16 (4) of the Act states that:
“A supplier must –
(a) Return any payment received from the consumer in terms of the transaction within 15 business days after –
(i) Receiving notice of the rescission, if no goods had been delivered to the consumer in terms of the transaction; and
(ii) Not attempt to collect any payment in terms of the rescinded transaction, except as permitted in Section 20 (6);
Section 20(2) of the Act states that:
“The consumer may return goods to the supplier and receive a full refund of any consideration paid for those goods, if the supplier has delivered goods to the consumer in terms of an agreement arising out of direct marketing and the consumer has rescinded that agreement during the cooling off period”
Section 20 (4) (a) states that:
“Goods returnable in terms of subsection 2(a) must be returned to the supplier at the consumer’s risk and expense within 10 business days after delivery to the consumer.”
In terms of the CPA a consumer in respect of particular goods or services means –
• A person to whom those particular goods or services are marketed in the ordinary course of the supplier’s business;
• A person who has entered into a transaction with a supplier in the ordinary course of the supplier’s business, unless the transaction is exempt from the application of this Act by sec 5 (2) or in terms of
Sec 5(3);
• If the context so requires or permits, a user of those particular goods or a recipient or beneficiary of those particular services, irrespective of whether that user, recipient or beneficiary was a party to a transaction concerning the supply of those particular goods or services; and
• A franchisee in terms of a franchise agreement, to the extent applicable in terms of
section 5(6)(b) to ( e)
In terms of the CPA a supplier means a person who markets aby goods or services.
