National Credit Act, 2005 (Act No. 34 of 2005)Chapter 4 : Consumer Credit PolicyPart C : Credit marketing practices76. Advertising practices |
| (1) | This section does not apply to an advertisement— |
| (a) | that does not make reference to a specific credit product or credit provider, and of which the dominant purpose is to promote— |
| (i) | responsible credit practices; or |
| (ii) | the use of credit generally; |
| (b) | that generally promotes a specific credit provider, brand or type of credit agreement, but does not make specific reference to product price, cost or availability of credit; or |
| (c) | by the seller of goods or services, or on the premises of such a person, if that notice or advertisement indicates only that the person is prepared to accept payment through a credit facility in respect of which another person is the credit provider. |
| (2) | This section applies to the provider of credit that is being advertised, or the seller of any goods or services that are being advertised for purchase on credit. |
| (3) | A person who is required to be registered as a credit provider, but who is not so registered, must not advertise the availability of credit, or of goods or services to be purchased on credit. |
| (4) | An advertisement of the availability of credit, or of goods or services to be purchased on credit— |
| (a) | must comply with this section; |
| (b) | must contain any statement required by regulation; |
| (c) | must not— |
| (i) | advertise a form of credit that is unlawful; |
| (ii) | be misleading, fraudulent or deceptive; or |
| (iii) | contain any statement prohibited by regulation; and |
| (d) | may contain a statement of comparative credit costs to the extent permitted by any applicable law or industry code of conduct, but any such statement must— |
| (i) | show costs for each alternative being compared; |
| (ii) | show rates of interest and all other costs of credit for each alternative; |
| (iii) | be set out in the prescribed manner and form; and |
| (iv) | be accompanied by the prescribed cautions or warnings concerning the use of such comparative statements. |
| (5) | In any advertisement concerning the granting of credit, a credit provider must state or set out the interest rate and other credit costs in the prescribed manner and form. |
| (6) | This section does not apply to developmental credit agreements if— |
| (a) | the National Credit Regulator has pre-approved a form of advertising to be used by the credit provider concerned; and |
| (b) | the credit provider has used only that pre-approved form of advertising in advertising or promoting goods, services or credit to the particular consumer. |
| (7) | When pre-approving any form of advertising as contemplated in subsection (6), the National Credit Regulator must balance the need for efficiency of the credit provider with the principles of this section. |