25 Oct 2010

The Minister of Trade and Industry, Dr Rob Davies, has determined that the monetary threshold applicable to the size of a juristic person in terms of Section 5(2) (b) of the Consumer Protection Act No 68 of 2008 is R3 million. This means that any business that is making a turnover of more than R3 million, will not be protected by the Consumer Protection Act. In determining the appropriate threshold, Minister Davies has considered various factors including, but not limited to the need to protect small businesses and the definition of a small business in terms of the National Small Business Amendment Act, No. 26 of 2003 as it applies to most sectors.

The determination of the threshold was published in the Government Gazette (No. 33621) for public comment. In terms of section 6 of the Consumer Protection Act, the minister, by notice in the Gazette, must determine a monetary threshold applicable to the size of the juristic person for purposes of the section 5(2)(b).

In terms of section 5(2)(b) thereof, the act does not apply to any transaction in terms of which 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 in terms of section 6 of the act. For purposes of the act, a juristic person includes a body corporate, a partnership or association or a trust as defined in the Trust Property Act, 1988 (Act No. 57 of 1988).

Although the act does not require the minister to issue the threshold for public comment; the department has deemed it necessary to provide the public with an opportunity to comment. It is also important that businesses should know beforehand whether they will be protected under the act or whether their customers who are juristic persons will be protected under the act.

Publication of the threshold figure in the Gazette will give the business sector an opportunity to implement compliance procedures before the general effective date of the act which is 1 April 2011.

The method used for calculating the juristic person’s asset value or annual turnover is explained in the schedule attached to the notice published in the Gazette Notice No. 33621 and posted on the Department of Trade and Industry’s website at http://www.thedti.gov.za. The notice published in the Gazette also invites members of the public to submit written comments by 31 October 2010 to cparegs@thedti.gov.za or fax 012 394 2383 or contact Mr Ntutuzelo Vananda at 012 394 1383.

Enquiries:

Sidwell Moloantoa Medupe

Tel: 012 394 1750

Cell: 073 522 6801 or 079 429 1774

E-mail: MSMedupe@thedti.gov.za 

Source: Department of Trade and Industry

Issued by: Department of Trade and Industry

25 Oct 2010