Consumer Protection Act 68 of 2008

Page 42

82 (ii) satisfying any further requirements other than those stipulated in terms of subsection (5). (10) Section 35(5), read with the changes required by the context, applies equally in respect of any prize or right to a prize conferred on a person as a result of that person’s 5 participation in a promotional competition. (11) The Minister may prescribe— (a) a monetary threshold for the purpose of excluding competitions with lowvalue prizes from the definition of ‘‘promotional competition’’; (b) minimum standards and forms for keeping records associated with promo10 tional competitions; and (c) audit and reporting requirements in respect of promotional competitions. Alternative work schemes 37. (1) A person must not make a false representation with respect to the availability, or extent of availability, actual or potential profitability, risk or other material aspect of the work, business or activity involved in any arrangement of an activity for gain in terms of which one person— (a) invites, solicits or requires other persons to conduct the work, business or activity from their homes; (b) represents to others as being practicable, to a considerable extent, to conduct the work, business or activity from their homes; or (c) invites, solicits or requires other persons to perform any work, business or activity, invest money, or perform any work, business or activity in association with the investment of money. (2) An advertisement promoting any matter contemplated in subsection (1) must— (a) be accompanied by a cautionary statement in the prescribed wording and form, disclosing the uncertainty of the extent of— (i) work, business or activity available; and (ii) income or other benefit to be derived; (b) disclose at least the following information: (i) The full name, or registered business name, of the person promoting the matter, and the address and contact numbers of that person’s primary place of conducting the business; and (ii) the nature of the work, business, activity or investment. (3) A person must not place an advertisement contemplated in subsection (2) otherwise than in accordance with the requirements of this section. (4) A person who does anything contemplated in subsection (1)(a) to (c) must not charge any person a fee in respect of the promotion or conduct of any such work, business, activity or investment, except to the extent that the person charged has been assigned and performed the contemplated work, business, activity, or made or received the contemplated investment.

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Referral selling 38. (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— 45 (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. 50 (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)


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