Cooling-Off Period

South African law contains two cooling-off regimes that attorneys frequently conflate. Section 16 of the Consumer Protection Act 68 of 2008 gives a consumer the right to rescind a transaction resulting from direct marketing without reason or penalty within five business days after the later of the conclusion of the transaction or delivery of the goods. The consumer must return the goods; the supplier must refund within 15 business days. Direct marketing is defined in section 1 and means approaching a person in person, by mail or electronic communication to promote or offer supply, or to request a donation.

Section 44 of the Electronic Communications and Transactions Act 25 of 2002 gives a separate seven-day cooling-off right for electronic consumer transactions, but with exclusions in section 42(2) (auctions, perishables, custom goods, audio-visual with broken seal, newspapers, betting). Where a transaction falls under both CPA direct marketing and ECTA e-commerce, the consumer may choose whichever is more beneficial. Section 29A of the Alienation of Land Act 68 of 1981 provides a five-day cooling-off period for residential land contracts below R250,000, exercised by written notice.

Cooling-off does not apply to most ordinary retail purchases, B2B transactions, financial services (which are excluded from the CPA), or transactions negotiated at the supplier\'s premises. Drafting implication: any contract with a South African consumer concluded through email, SMS, telemarketing, or door-to-door sales must disclose the section 16 right in "plain and understandable language" (section 22). Omitting the disclosure does not negate the right but is itself a prohibited conduct under section 16(4), actionable by the National Consumer Commission.