PRICE DISPLAY OF GOODS OR SERVICES

Applicable sections of the Consumer Protection Act, 68 of 2008: S 15, 23

The provisions relating to price display do not apply to transactions where the supplier has provided an estimate to the consumer or where the consumer has declined the offer of an estimate. The provisions also do not apply where Section 43 of the Electronic Communications and Transactions Act, 25 of 2002, applies to that transaction.

A supplier may not display any goods for sale without displaying a price in relation to those goods. Goods on display as a form of advertising in an area within the supplier’s premises and to which the public does not ordinarily have access, do not have to contain a price. This would refer to goods in a display cabinet, window display, etc. Goods in a storeroom are not on display and thus do not have to contain a price.

In terms of the Act a price is adequately displayed if a written indication of the price expressed in ZAR is:

· annexed or affixed to, written, printed, stamped or located upon, or otherwise applied to the goods or to any band, ticket, covering, label, package, reel, shelf or other thing used in connection with the goods or on which the goods are mounted for display or exposed for sale;

· in any way represented in a manner from which it may reasonably be inferred that the price represented is a price applicable to the goods or services in question; or

· published in relation to the goods in a catalogue, brochure, circular or similar form of publication available to that consumer, or to the public generally, if—

o a time after which the goods will no longer be available at that price is specified, and that time has not yet passed; or

o in any other case, the catalogue, brochure, circular or similar form of publication is dated and reasonably regarded as not out of date.

A consumer may not be charged more than the displayed price for goods or services. If more than one price is concurrently displayed, the consumer will pay the lowest of the prices displayed. “The price you see is the price you pay” rule does not apply to goods or services if the price thereof is determined by or in terms of public regulation. An example hereof would be the petrol price.

A price that fully covers and obscures a previously displayed price will be the valid displayed price.

A supplier is not bound by inadvertent and obvious errors in price display, provided the supplier corrects the error and take reasonable steps to communicate such an error and the correct price to consumers aware of the incorrect pricing. A new car for sale with a price of R21,000 (instead of R210,000) displayed is an obvious error.

A supplier is not bound by a price that has been altered, defaced, covered, removed or obscured by an unauthorised person or which has not been authorised by the supplier. By example, removing a price tag from one item and placing it on another will not bind the supplier.

Where a supplier has advertised or displayed in a placard or similar device that prices are, will be or have been discounted by either a certain monetary value or a percentage reduction, then the price payable for the goods discounted will be the price displayed in relation to the item less any advertised or placarded discount; unless the item contains two prices and the lower of the two is exactly the higher price less the amount or percentage of the discount, in which case the consumer will then pay the power of the two displayed prices.

Suppliers of retail products, specifically, must take care when displaying prices. This will require that when prices go up, the suppliers ensure that they change the displayed prices immediately so as to avoid losses or decreased profit margins. Particular care must be taken when announcing discounts so as to avoid any confusion in the consumer’s mind regarding the price to be paid. Consumers who are aware of their rights regarding price display will no doubt in future force suppliers, and retailers in particular, to honour the displayed price in terms of the abovementioned rules.

Care should also be taken to ensure that the displayed price is for the item exactly as it is on display. A lamp with a plug and light bulb on display would have to be priced as a lamp with a plug and light bulb, and not as the lamp only. The price displayed on a motor vehicle on a showroom floor should include the price of any and all optional extras, such as metallic paint  and air conditioner, already fitted to that particular vehicle.  Alternatively, the base model price can be displayed together with the cost of each optional extra already fitted and an indication that these extras are already fitted on the particular vehicle.

In relation to the provision of a service, consumers will be well advised to always request a written cost estimate in terms of Section 15 of the Act prior to appointing any service provider. Suppliers should ensure that estimates are accurate and detailed as they may not charge more than the estimate.

© Rynardt Olivier 2011 - 2021

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For information on other Consumer Protection Act related topics, go to www.edutrain.co.za

The views and opinions expressed above do not represent qualified legal opinion, but is merely a personal view based on my understanding and interpretation of the Consumer Protection Act.