Real Estate Investor Magazine South Africa October 2016 | Page 34

FINANCE

Don’t be caught out by Tax Laws
The CPA and danger that lurks…
BY JOSE DELGADO

T

he Consumer Protection Act (CPA) No: 68
of 2008 was promulgated on the first of April
2011.
For some not quite an April fools joke… and this is
the gist of this article.
Many consumers are relieved that finally they
have recourse to, and remedies against unscrupulous
businesses or in many cases very large corporates
where their impassioned pleas for better warranties,
services, refunds, fending off unwarranted marketing,
cooling off clauses, damages or just basic help have
fallen on deaf ears!
Whilst the CPA has many positive aspects for
consumers and is a great piece of legislation the CPA
introduced a seismic shift in our litigation system.
This massive change in our litigation landscape has
been achieved through the introduction of section 61
of the CPA.
Basically the section stipulates that any person that
provides good or services to a consumer that results in
losses, damages or consequential economic losses to a
consumer as a result of the provision of the goods or
services shall be liable to such consumer.
Section 61 may appear to be fair but it has replaced
the previous system of having to prove negligence to
secure damages or losses where goods or services have
been provided, which was a more objective standard
due to an element