Business Practices Committee Report 77Financial Research Foundation (Pty) Ltd10. Recommendation |
It was stated in footnote 2 that amendments to the former Business Practices Act were published in the Government Gazette of 14 May 1999. The terms of office of the members of the former BPC expired on that date and the members of the Consumer Affairs Committee were appointed during January 2000 and held their first meeting on 29 February 2000. During this period, 14 May 1999 to 29 February 2000, no resolutions were taken. For this reason this recommendation has been delayed.
Whether the business practices conducted by Financial Research Foundation (Pty) Ltd, Financial Research Corporation (Pty) Ltd, AL Friedman, FJL Friedman, LP Friedman, Michelle Friedman and Fritz Friedman to relieve consumers of their money were devised or whether they came about by accident, they constitute harmful business practices. There are no grounds justifying the practices in the public interest. It is accordingly recommended that the Minister:
| a) | in terms of section 12(1)(b) of the Act declares unlawful the business practice whereby Financial Research Foundation (Pty) Ltd, Financial Research Corporation (Pty) Ltd, AL Friedman, FJL Friedman, LP Friedman, Michelle Friedman and Fritz Friedman, directly or indirectly, |
| i) | provide any service in return for money or any other valuable consideration for the express or implied purpose of investigating fees, charges, and/or interest charged on any debtor’s account(s), including accounts held at financial institutions; |
| ii) | invite any persons to buy any programme, including any computer software programme, in return for money or any other valuable consideration, for the express or implied purpose to use the programme to calculate fees, charges, and/or interest charged on any account(s), including accounts held at financial institutions; and |
| iii) | obtain any interest in or deriving any income from a business or type of business applying the harmful business practice. |
| b) | in terms of section 12(1)(c) of the Act directs Financial Research Foundation (Pty) Ltd, Financial Research Corporation (Pty) Ltd, AL Friedman, FJL Friedman, LP Friedman, Michelle Friedman and Fritz Friedman to refrain from applying the harmful business practice. |
Prof T A Woker
Vice-Chairperson: Consumer Affairs Committee
Date: 17 March 2000