National Consumer Commission welcomes R1 million fine against Braai Block
The National Consumer Commission (NCC) welcomes the ruling handed down on 11 December 2024 by the National Consumer Tribunal (Tribunal) confirming that Braai Block (Pty) Ltd (Braai Block), a supplier of food based in Gauteng, contravened provisions of the Consumer Protection Act (CPA) and fined R1 000 000,00 (One Million Rand).
The NCC had received a tip-off from a consumer alerting it to possible violations of various provisions of the CPA by Braai Block. The consumer alleged that Braai Block did not include the location of its trading address in its tax invoices; and secondly, Braai Block charges a service fee on each transaction. The service fee amount depends on the cost of each meal and varies from one transaction to another. The NCC then initiated an investigation.
Upon finalising the matter, the NCC formed reasonable suspicion that Braai Block contravened sections 23(6)(a) and 26(3)(b) of the CPA.
Section 23 relates to disclosure of price of goods or services and subsection 6(a) states that “...a supplier must not require a consumer to pay a price for any goods or services higher than the displayed price for those goods or services.” Whilst Section 26(3)(b) requires that, the sales record “…must include at least the following information: the address of the premises at which, or from which, the goods or services were supplied.”
The Tribunal found that Braai Block has contravened sections 23(6)(a) and 26(3)(b) of the CPA and imposed an administrative penalty of R1 000 000,00 (One Million Rand) which must be paid within ninety (90) days of the order.
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Ruling on this matter, the Tribunal noted that “The respondent [Braai Block] acted deceitfully towards its customers and contravened the CPA's significant provisions. It acted contemptuously towards the very consumers who supported it.”
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Welcoming this ruling, the NCC’s Acting Commissioner Mr Hardin Ratshisusu said: “This is a major ruling as it affirms consumers the protection against suppliers that do not disclose accurate information on sales records. This ruling should serve as strong deterrence to other suppliers from engaging in similar conduct.”
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Phetho Ntaba (Ms)
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