The effect of the Consumer Protection Act 68 of 2008 on exemption clauses in standard-form contracts

Abstract

One of the reasons why the Consumer Protection Act 68 of 2008 (CPA) was enacted, was to protect consumers against suppliers who enforced onerous terms and conditions to the disadvantage of the consumer. Exemption clauses are amongst such onerous terms and conditions and according to Part G of the CPA (sections 48-52), exemption clauses must not be drafted on terms that are unjust, unfair and unreasonable. As almost all consumer agreements are drafted unilaterally in the form of standard-form contracts, this research will focus on the history of standard-form contracts and exemption clauses; the advantages and disadvantages of using them, landmark cases in which exemption clauses in standard-form contracts were dealt with, the effect of exemption clauses in standard-form contracts in light of the CPA and the legal remedies that are available to the consumer in instances where the supplier does not comply with the provisions of the CPA. The research will focus on the criticisms that have been levelled against the CPA as well as recommendations on what the legislature can do to rectify some of the problems that have been associated with the CPA.