CPA Section 41 (False or Misleading Representations)

Section 41 of the Consumer Protection Act 68 of 2008 (CPA) is the general prohibition against false, misleading or deceptive conduct in consumer transactions. It applies whenever a supplier markets goods or services, negotiates an agreement or performs under one, and captures both express statements and reasonably inferred implications. The prohibition is supplier-facing and strict; it is enforced by the National Consumer Commission and the National Consumer Tribunal, with civil redress available to the consumer.

Section 41(3) catalogues specific prohibited conduct, including false claims about sponsorship, endorsement, approval, affiliation, performance characteristics, origin or history of goods, the price advantage offered, the reason for a price reduction, the supplier\'s authority, or the consumer\'s rights. It also outlaws "bait marketing" — invitations extended under the pretext of a benefit the supplier does not reasonably intend to honour. The test for misleading conduct is objective: would an ordinary consumer targeted by the marketing be misled, irrespective of the supplier\'s subjective intent? This mirrors the common-law approach in Corruseal Corrugated KZN v Zulu Paper Products and aligns with Advertising Regulatory Board jurisprudence.

The commercial consequences are significant. Contraventions expose suppliers to administrative fines of up to 10% of annual turnover or R1,000,000 (whichever is greater), voiding of the agreement at the consumer\'s election under section 52, and reputational damage via public Commission orders. Compliance requires pre-launch review of all promotional material, substantiation of comparative claims, accurate "was/now" pricing, and ensuring that the dominant impression of the communication matches the underlying commercial reality.