SCA clarifies purpose of the Consumer Protection Act

Lease agreements not covered by act

- By Mzwandile kaBizokwakhe

In a judgment that lends clarity to the scope of South Africa’s consumer protection laws, the Supreme Court of Appeal (SCA) has ruled that the Consumer Protection Act (CPA) is designed to protect vulnerable and historically disadvantaged consumers, and does not apply to private lease agreements between individuals.

The ruling, handed down in the case of Els v Venter and another, centred on whether a residential lease agreement for a luxury home in Stellenbosch fell under the protection of the CPA. The appellant, Johann Els, had argued that the act applied, which would have severely restricted the homeowners’ ability to terminate a lease.