Consumer Protection Act: part 5

CONSUMER PROTECTION ACT AND AUCTIONS:

Section 55 of the Consumer Protection Act (CPA) provides for a consumer’s rights to safe, good quality goods. However, this section does not apply to goods bought on an auction.

• section55(1) reads as follows:

This section does not apply to goods bought at an auction, as contemplated in section 45

• section 45 (1) reads as follows:

In this section, ‘‘auction’’ includes a sale in execution of or pursuant to a court order, to the extent that the order contemplates that the sale is to be conducted by an auction.

It is important to note that although goods bought on auction are not subject to section 55, the auctioneers still have to ensure that auctions are complaint with section 45 of the CPA’s  requirements.

Extra information:

Under the Alienation of Land Act, in terms of section 29A, consumers are provided with the right to cool-off. This allows consumers to withdraw from a transaction and/or contract under certain circumstances. It is important to note that sellers are not afforded with the same right. Under this Act, this right is governed by the following:

• property must be used mainly for residential purposes;
• sale price must not exceed R 250 000 (buyers who purchase property for more then this amount do not enjoy this right);
• the purchaser is given 5 working days to cool-off, which commence the day after he has signed the contract.

The above right does not apply to goods bought on auction. In addition to this, the general view under the CPA is that the right to cool-off, which is afforded to consumers as well as the prohibition of voetstoot clauses in terms of the CPA, are not applicable to goods bought on auction.