Scenario: You, as a supplier, have sold a TV to a customer. After a period of time, the customer returns the TV, wanting a full refund. How must you handle this situation?
The Consumer Protection Act (CPA) allows for a right to return goods only in specific circumstances. There is no such thing as an unlimited right to return, despite what many consumers think and often insist on.
We will deal with this scenario in two parts. Please look out for part two in our next article.
In terms of the CPA, there is a term known as a “cooling off period”.
This period applies when a supplier has directly marketed to a consumer. In other words, the supplier has directly approached the consumer to purchase the product.
An example of this would be a supplier handing out brochures at a traffic light or telemarketers who bug consumers all day long.
During the cooling off period, the customer may return the goods for a full refund without giving any reason why the goods have been returned.
However, the customer will bear the onus of any costs associated with returning the goods to the supplier. For all other return rights provided in the CPA, the cost of the return must be borne by the supplier.
The cooling off periods differ depending on the following circumstances:
• If not an online sale, a five-day cooling off period for sales resulting from direct marketing applies.
• If an online sale, a seven-day cooling off period applies in general, but some exceptions will apply in terms of this right as not all goods may be returned.
Therefore, should direct marketing apply, you as the supplier will have to accept the cancellation of the transaction and supply a full refund within the above-mentioned periods.
In our experience, many suppliers do not adhere to these laws and get taken to task for it. We suggest that, should you not be sure your return policy is compliant, you approach a legal practitioner to assist you with it.
In our next article, we will deal with the return of goods that fall outside of direct marketing. Should you require more detail on this topic in the meantime, you are welcome to contact our offices on 011 897 1900 or info@tuckers.co.za
Article contributed by Kenny Smith of Tuckers Inc.
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