Consumer (CPA)
Also known as: CPA Consumer, Protected Consumer.
What is Consumer?
A consumer, under section 1 of the Consumer Protection Act 68 of 2008, is a person to whom goods or services are marketed or supplied in the ordinary course of the supplier's business, or a user of those goods or recipient of those services. Juristic persons with turnover or assets below the R2 million threshold also qualify, giving the CPA broad B2B and B2C reach.
Drafted and reviewed by
Attorney & Founder, My-Contracts.co.za · Legal Practice Council of South Africa (LPC F17333)
Definition and context
The CPA\'s consumer definition in section 1 is deliberately broad. It captures any natural person to whom the supplier markets or supplies goods or services, and users of those goods or recipients of services — regardless of whether they personally paid. Crucially, juristic persons (companies, close corporations, trusts) are also consumers if, at the time of the transaction, their asset value or annual turnover is below the threshold set under section 6 — currently R2 million (GN 294 of 1 April 2011).
This threshold means the CPA reaches deep into B2B supply, distribution and service contracts with SMEs. Suppliers cannot contractually exclude CPA rights (section 51); clauses purporting to do so are void. The consumer enjoys the full suite of CPA protections — right to equality in marketing (s 8–10), privacy (s 11–12), information in plain language (s 22), cooling-off (s 16), fair and honest dealing (s 40), fair, just and reasonable contract terms (s 48), implied warranty of quality (s 55–56), and the right to return defective goods (s 56).
Three exclusions matter. First, transactions covered by the National Credit Act are regulated by that Act (section 5(2)(d)). Second, transactions exempted by the Minister are outside the CPA. Third, the employer-employee relationship is excluded. For contract drafting, a supplier must identify whether the counterparty is a consumer (including juristic consumers below R2m) and, if so, embed CPA-compliant plain language, cooling-off disclosures, implied-warranty rights, and the prohibition on prohibited transactions under section 40.
Where this term lives in law
Consumer Protection Act 68 of 2008
Sections: 1, 5, 6, 22, 51, 55, 56
Protects consumer rights in transactions for goods and services within South Africa.
Frequently asked questions
Who counts as a consumer under the CPA?
Any natural person to whom goods or services are marketed or supplied, any user of those goods or recipient of those services, and any juristic person whose asset value or annual turnover falls below the R2 million threshold set by the Minister under section 6.
Does the CPA apply to business-to-business contracts?
Yes — where the customer is a juristic person with assets or turnover below R2 million at the time of the transaction. The CPA therefore reaches most SME supplier agreements, franchise contracts (regardless of franchisee size), and consumer-facing distribution.
Can a supplier contract out of the CPA?
No. Section 51 makes any contractual term that purports to waive or limit the consumer's CPA rights void. Courts will strike the offending clause and may award damages under section 4(2)(b) read with section 76.
Are franchise agreements covered?
Yes. Franchise agreements are expressly subject to the CPA under section 7, regardless of the franchisee's size or turnover. Additional franchise-specific duties apply, including the disclosure document requirement in Regulation 2 and the 10-business-day cooling-off right.
Contract templates using this term
3 templates reference Consumer (CPA).