Display of goods for sale, advertisements and the Consumer Protection Act

Abstract

The article investigates the influence of the Consumer Protection Act 68 of 2008 (‘the CPA’) on the general rule that the advertising or display of goods for sale at a certain price is an invitation to do business and not an offer to sell. The article critically discusses the common-law position and argues that although a general rule exists in favour of advertisements being regarded as invitations to do business, no such general rule exists in respect of the physical display of goods at a certain price. Furthermore, although it remains a factual question whether an offer exists, the underlying policy considerations must also be taken into account. Thereafter, the article investigates the meaning and influence of the CPA on the common-law position. It is argued that the relevant provisions in the CPA (ss 23, 29 and 30) require that the display of goods at a certain price generally would be viewed as an offer. Furthermore, it is argued that while the CPA has not amended the common-law rule in respect of advertisements, it has improved the consumer’s position by prohibiting misleading advertisements and by placing certain obligations on a supplier if it cannot fulfil the promises in its advertisements.