South Africa: Fast food chain slapped with $54336 fine for contravening CPA

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The National Consumer Commission (NCC) has welcomed the ruling issued by the National Consumer Tribunal - which confirmed that the Gauteng-based fast food chain, Braai Block, violated provisions of the Consumer Protection Act (CPA).

The Tribunal has since imposed an administrative penalty of R1m on the food chain, which must be paid within 90 days.

This follows a tip-off received by the NCC from a consumer about potential violations of various CPA provisions by Braai Block.

“The consumer alleged that Braai Block did not include the location of its trading address in its tax invoices. Secondly, Braai Block charges a service fee on each transaction.

“The service fee amount depends on each meal’s cost and varies from transaction to transaction. The NCC then initiated an investigation,” the Commission said in a statement, on Wednesday.

CPA violations

After concluding the investigation, the NCC found that there was a reasonable suspicion that Braai Block violated sections 23(6)(a) and 26(3)(b) of the CPA.

Section 23 pertains to the disclosure of prices for goods or services, with subsection 6(a) stating that “a supplier must not require a consumer to pay a price for any goods or services that is higher than the displayed price for those goods or services."

Meanwhile, Section 26(3)(b) states that the sales record must include at least the address of the premises where the goods or services were supplied.

The Tribunal found that Braai Block deceived its customers, violating significant provisions of the CPA.

“It acted contemptuously towards the very consumers who supported it,” the statement read.

NCC Acting Commissioner Hardin Ratshisusu has described the penalty as a major ruling as it affirms consumers the protection against suppliers that do not disclose accurate information on sales records.

“This ruling should serve as a strong deterrence to other suppliers from engaging in similar conduct,” he added.

On its website, Braai Block describes itself as the world’s first natural organic braai fast food chain, which has five outlets across South Africa.