Everything you need to know about your rights with false advertising

Your consumer rights must always be respected when you buy something, but also when goods and services are advertised. Advertising is aimed at making you want to spend money, but it can only be done within the confines of the Consumer Protection Act.

Parts E and F of the Consumer Protection Act (CPA) make it very clear what the rights of consumers and advertisers are when goods and services are marketed. Part E deals with your right to fair and responsible marketing and Part F with your right to fair and honest dealing.

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General standards for marketing of goods and services

Section 29 determines the general standards for marketing goods and services and stipulates that companies, whether they are producers, importers, distributors, retailers or service providers, are not allowed to market any goods or services in a manner that is false or misleading.

Advertising cannot be misleading, fraudulent or deceptive about the nature, properties, advantages or uses of the goods or services and that includes how and under which conditions they are supplied.

Nobody is allowed, for example, to advertise a trip to Europe at a price that ‘includes everything’ if you still have to pay for extra charges or that you can ‘pay later’ if you are supposed to pay for it when you book.

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Companies are also not allowed to mislead you about the price of goods and services. This includes the relationship of the price to any price charged before or charged by a competitor for similar goods and services. A bank is not allowed, for example, to say it is the only bank that offers free online banking if that is not the case.

Marketers are also not allowed to mislead you about the fact that the company sponsors events, such as saying that all professional golfers use this golf ball at a tournament if it is untrue.

Advertising can also not mislead you about any material facts of goods or services, such as saying ‘all men use it’ which can only be true if every man in the country received the product and nobody has been paid to use it.

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False, misleading or deceptive representations

According to section 41 nobody is allowed to make false, misleading or deceptive representations in words and conduct, directly or indirectly, about a material fact of goods and services. A company cannot say in advertisement ‘we are the cheapest in the country’ if a national survey was not done and the company was not in fact found to be the cheapest.

Marketers are not allowed to use exaggeration, innuendo or ambiguity about a material fact, or fail to disclose a material fact if it amounts to a deception. When a shop assistant realises that you have a completely wrong perception of a product, he must correct you and ensure you have the correct facts to enable you to make an informed choice.

If you buy a decoder for instance and think you will be able to watch all the channels it offers, but only sign a contract for a limited number of channels, the shop assistant must explain which channels you will be able to watch. It is therefore the shop’s duty to correct any apparent misapprehension on you part if it can amount to a false, misleading or deceptive representation.

Shop assistants can also not falsely represent that goods or services have any sponsorship, approval or affiliation that is not true. A tennis racquet can, for example, not be promoted as ‘the kind Rafa Nadal plays with’ if he does not use it.

They are also not allowed to present that goods or services have ingredients, performance characteristics, accessories, uses, benefits, qualities, sponsorship or approval that they do not have or that they are of a particular standard, quality, grade, style or model if it is not the case.

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A product may not, for example, be promoted as ‘good for your heart according to doctors’ if every doctor in the country does not prescribe it for their patients. Products can also not be marketed as new or unused if they are not or if they are reconditioned or reclaimed.

Any land or other immovable property can also not be advertised with characteristics it does not have or that it can be used lawfully for a purpose that is in fact unlawful or impracticable or that it is near any facilities, amenities or natural features if it is not the case.

Therefore, a ‘beach house with a sea view within walking distance of the central business district’ must be exactly that: a house on the beach close to the shops.

Goods can also not be marketed with the promise that the necessary service, maintenance or repair facilities or parts are readily available for or within a reasonable period if that is not true and advertisers cannot promise that any service, part, replacement, maintenance or repair is needed or advisable if that is not the case.

Advertisements must also be truthful about specific price advantages and charges for a specific purpose. Employees, salespeople, representatives or agents are not allowed to say they have the necessary authority to negotiate the terms of, or conclude, an agreement if it is not so and they are also not allowed to pretend that the transaction affects, or does not affect, any rights, remedies or obligations of a consumer.

Salespeople cannot invite you to a demonstration or event or communicate with you if they mislead you about the reason for the invitation, such as timeshare salespeople who invite you to a dinner where they put pressure on you to buy timeshare.

They are also not allowed to offer you a discount or a gift if you help to find more customers.