Consumer Protection Act, 2008 (Act No. 68 of 2008)Chapter 2 : Fundamental Consumer RightsPart E : Right to fair and responsible marketing35. Customer loyalty programmes |
| 1) | Despite any provision in any law, agreement or notice to the contrary, for all purposes of this Act, loyalty credits or awards are a legal medium of exchange when offered or tendered as consideration for any goods or services offered, or transaction contemplated, in terms of that loyalty programme. |
| 2) | A person must not offer participation in a loyalty programme, or offer any loyalty credit or award with the intention of— |
| a) | not providing it; or |
| b) | providing it in a manner other than as offered. |
| 3) | Any document setting out an offer contemplated in subsection (2) must clearly state— |
| a) | the nature of the programme, credit or award being offered; |
| b) | the goods or services to which the offer relates; |
| c) | the steps required by a consumer to participate in the programme or to receive any benefit in terms of the programme; and |
| d) | any person from whom, any place where, and any date and time on or at which, the consumer may gain access to the programme, or to any loyalty credit or awards in terms of the programme. |
| 4) | Subject to subsections (5) and (6), the sponsor of a loyalty programme, or a supplier who offers or holds out a willingness, to accept any loyalty credits or awards as consideration or in exchange for any particular goods or services, must— |
| a) | ensure that the supply of those particular goods or services available at any time is sufficient to accommodate all reasonably anticipated demands for those goods or services in exchange for loyalty credits or awards; |
| b) | not limit or restrict capacity to supply those particular goods or services in exchange for such credits or awards on any basis other than that it applies to such a supply in exchange for any other form of consideration; |
| c) | accept any tender of sufficient loyalty credits or awards as adequate consideration for the price of those particular goods or services if, at that time, it has capacity available for supply in exchange for any other form of consideration; |
| d) | not require the consumer to accept an inferior quality of those particular goods or services than those generally available to any other consumer on the same date who tenders a different form of consideration; |
| e) | not impose any monetary charge in respect of the administration, processing or handling of such a transaction if the consumer is required to pay a periodic fee to remain a member of the programme; and |
| f) | not demand that the consumer purchase any other goods or services in connection with that transaction. |
| 5) | A sponsor of a loyalty programme, or a supplier of goods or services who accepts loyalty credits or awards as consideration for any particular goods or services, may impose a partial or complete restriction on the availability of any such goods or services in exchange for loyalty credits or awards during any specific period, if the programme sponsor has directly or indirectly given notice in writing to the members of that programme at least 20 business days before the beginning of that period, but the total of all such periods within a calendar year must not exceed 90 days. |
| 6) | It is a defence to an alleged failure to comply with subsection (4)(a) if the supplier offered to supply or procure another person to supply a consumer with comparable goods or services of the relevant kind to satisfy the consumer’s request, for no consideration beyond the advertised price expressed in loyalty awards, and the consumer— |
| a) | accepted the offer, and the supplier has supplied or procured another person to supply the goods or services so offered and accepted; or |
| b) | unreasonably refused that offer. |