Consumer Protection Act, 2008 (Act No. 68 of 2008)Chapter 2 : Fundamental Consumer RightsPart E : Right to fair and responsible marketing38. Referral selling |
| 1) | A person must not promote, offer, supply, agree to supply, or induce a consumer to accept any goods or services on the representation that the consumer will receive a rebate, commission or other benefit if— |
| a) | the consumer subsequently— |
| i) | gives the supplier the names of consumers; or |
| ii) | otherwise assists the supplier to supply goods or services to other consumers; and |
| b) | that rebate, commission or other benefit is contingent upon an event occurring after the consumer agrees to the transaction. |
| 2) | A statement by a consumer, whether in an agreement or otherwise, to the effect that the consumer was motivated to enter into a transaction contemplated in subsection (1) predominately for the value of the goods or services, rather than for the rebate, commission or benefit, is not a defence to an allegation that a person has contravened subsection (1). |
| 3) | This section does not apply to a franchise agreement. |