5.ApplicationofAct.

(1)ThisActappliesto

(a) everytransactionoccurringwithintheRepublic,unlessitisexemptedbysubsection(2),orintermsof
subsections(3)and(4)

(b) thepromotionofanygoodsorservices,orofthesupplierofanygoodsorservices,withinthe
Republic,unless

(i) thosegoodsorservicescouldnotreasonablybethesubjectofatransactiontowhichthisAct
appliesintermsofparagraph(a)or

(ii) thepromotionofthosegoodsorserviceshasbeenexemptedintermsofsubsections(3)and(4)

(c) goodsorservicesthataresuppliedorperformedintermsofatransactiontowhichthisActapplies,
irrespectiveofwhetheranyofthosegoodsorservicesareofferedorsuppliedinconjunctionwithany
othergoodsorservices,orseparatefromanyothergoodsorservicesand

(d) goodsthataresuppliedintermsofatransactionthatisexemptfromtheapplicationofthisAct,but
onlytotheextentprovidedforinsubsection(5).
(2)ThisActdoesnotapplytoanytransaction

(a) intermsofwhichgoodsorservicesarepromotedorsuppliedtotheState

(b) intermsofwhichtheconsumerisajuristicpersonwhoseassetvalueorannualturnover,atthetime
ofthetransaction,equalsorexceedsthethresholdvaluedeterminedbytheMinisterintermsof
section6

(c) ifthetransactionfallswithinanexemptiongrantedbytheMinisterintermsofsubsections(3)and
(4)

(d) thatconstitutesacreditagreementundertheNationalCreditAct,butthegoodsorservicesthatare
thesubjectofthecreditagreementarenotexcludedfromtheambitofthisAct

(e) pertainingtoservicestobesuppliedunderanemploymentcontract

(f) givingeffecttoacollectivebargainingagreementwithinthemeaningofsection23oftheConstitution
andtheLabourRelationsAct,1995(ActNo.66of1995)or

(g) givingeffecttoacollectiveagreementasdefinedinsection213oftheLabourRelationsAct,1995(Act
No.66of1995).
(3)AregulatoryauthoritymayapplytotheMinisterforanindustrywideexemptionfromoneormore
provisionsofthisActonthegroundsthatthoseprovisionsoverlaporduplicatearegulatoryschemeadministered
bythatregulatoryauthorityintermsof

(a) anyothernationallegislationor

(b) anytreaty,internationallaw,conventionorprotocol.
(4)TheMinister,bynoticeinthe GazetteafterreceivingtheadviceoftheCommission,maygrantan
exemptioncontemplatedinsubsection(3)

(a) onlytotheextentthattherelevantregulatoryschemeensurestheachievementofthepurposesof
thisActatleastaswellastheprovisionsofthisActand

(b) subjecttoanylimitsorconditionsnecessarytoensuretheachievementofthepurposesofthisAct.
(5)IfanygoodsaresuppliedwithintheRepublictoanypersonintermsofatransactionthatisexemptfrom
theapplicationofthisAct,thosegoods,andtheimporterorproducer,distributorandretailerofthosegoods,
respectively,areneverthelesssubjecttosections60and61.
(6)Forgreatercertainty,thefollowingarrangementsmustberegardedasatransactionbetweenasupplier
andconsumer,withinthemeaningofthisAct:

(a) Thesupplyofanygoodsorservicesintheordinarycourseofbusinesstoanyofitsmembersbya
club,tradeunion,association,societyorothercollectivity,whethercorporateorunincorporated,of
personsvoluntarilyassociatedandorganisedforacommonpurposeorpurposes,whetherforfair
valueconsiderationorotherwise,irrespectiveofwhetherthereisachargeoreconomiccontribution
demandedorexpectedinordertobecomeorremainamemberofthatentity

(b) asolicitationofofferstoenterintoafranchiseagreement

(c) anofferbyapotentialfranchisortoenterintoafranchiseagreementwithapotentialfranchisee

(d) afranchiseagreementoranagreementsupplementarytoafranchiseagreementand

(e) thesupplyofanygoodsorservicestoafranchiseeintermsofafranchiseagreement.
(7)Despitesubsection(2)(b),thisActappliestoatransactioncontemplatedinsubsection(6)(b) t o (e)
irrespectiveofwhetherthesizeofthejuristicpersonfallsaboveorbelowthethresholddeterminedintermsof
section6.
 (8)TheapplicationofthisActintermsofsubsections(1)to(7)extendstoamatterirrespectiveofwhether
thesupplier

(a) residesorhasitsprincipalofficewithinoroutsidetheRepublic

(b) operatesonaforprofitbasisorotherwiseor

(c) isanindividual,juristicperson,partnership,trust,organofstate,anentityownedordirectedbyan
organofstate,apersoncontractedorlicensedbyanorganofstatetoofferorsupplyanygoodsor
services,orisapublicprivatepartnershipor

(d) isrequiredorlicensedintermsofanypublicregulationtomakethesupplyoftheparticulargoodsor
servicesavailabletoallorpartofthepublic.

(Dateofcommencementofs.5:24April,2010.)

35.Customerloyaltyprogrammes.(1)Despiteanyprovisioninanylaw,agreementornoticetothe
contrary,forallpurposesofthisAct,loyaltycreditsorawardsarealegalmediumofexchangewhenofferedor
tenderedasconsiderationforanygoodsorservicesoffered,ortransactioncontemplated,intermsofthatloyalty
programme.
(2)Apersonmustnotofferparticipationinaloyaltyprogramme,orofferanyloyaltycreditorawardwiththe
intentionof

(a) notprovidingitor

(b) providingitinamannerotherthanasoffered.
(3)Anydocumentsettingoutanoffercontemplatedinsubsection(2)mustclearlystate

(a) thenatureoftheprogramme,creditorawardbeingoffered

(b) thegoodsorservicestowhichtheofferrelates

(c) thestepsrequiredbyaconsumertoparticipateintheprogrammeortoreceiveanybenefitinterms
oftheprogrammeand

(d) anypersonfromwhom,anyplacewhere,andanydateandtimeonoratwhich,theconsumermay
gainaccesstotheprogramme,ortoanyloyaltycreditorawardsintermsoftheprogramme.
(4)Subjecttosubsections(5)and(6),thesponsorofaloyaltyprogramme,orasupplierwhooffersorholds
outawillingness,toacceptanyloyaltycreditsorawardsasconsiderationorinexchangeforanyparticulargoodsor
services,must

(a) ensurethatthesupplyofthoseparticulargoodsorservicesavailableatanytimeissufficientto
accommodateallreasonablyanticipateddemandsforthosegoodsorservicesinexchangeforloyalty
creditsorawards

(b) notlimitorrestrictcapacitytosupplythoseparticulargoodsorservicesinexchangeforsuchcredits
orawardsonanybasisotherthanthatitappliestosuchasupplyinexchangeforanyotherformof
consideration

(c) acceptanytenderofsufficientloyaltycreditsorawardsasadequateconsiderationforthepriceof
thoseparticulargoodsorservicesif,atthattime,ithascapacityavailableforsupplyinexchangefor
anyotherformofconsideration

(d) notrequiretheconsumertoacceptaninferiorqualityofthoseparticulargoodsorservicesthanthose
generallyavailabletoanyotherconsumeronthesamedatewhotendersadifferentformof
consideration

(e) notimposeanymonetarychargeinrespectoftheadministration,processingorhandlingofsucha
transactioniftheconsumerisrequiredtopayaperiodicfeetoremainamemberoftheprogramme
and

(f) notdemandthattheconsumerpurchaseanyothergoodsorservicesinconnectionwiththat
transaction.
(5)Asponsorofaloyaltyprogramme,orasupplierofgoodsorserviceswhoacceptsloyaltycreditsor
awardsasconsiderationforanyparticulargoodsorservices,mayimposeapartialorcompleterestrictiononthe
availabilityofanysuchgoodsorservicesinexchangeforloyaltycreditsorawardsduringanyspecificperiod,ifthe
programmesponsorhasdirectlyorindirectlygivennoticeinwritingtothemembersofthatprogrammeatleast20
businessdaysbeforethebeginningofthatperiod,butthetotalofallsuchperiodswithinacalendaryearmustnot
exceed90days.
(6)Itisadefencetoanallegedfailuretocomplywithsubsection(4)(a)ifthesupplierofferedtosupplyor
procureanotherpersontosupplyaconsumerwithcomparablegoodsorservicesoftherelevantkindtosatisfythe
consumer'srequest,fornoconsiderationbeyondtheadvertisedpriceexpressedinloyaltyawards,andthe
consumer
(a) acceptedtheoffer,andthesupplierhassuppliedorprocuredanotherpersontosupplythegoodsor
servicessoofferedandacceptedor

(b) unreasonablyrefusedthatoffer.