International Law

Franchises are Consumers in South Africa

Image via Wikipedia

Nixon Peabody LLP has an overview of the new proposed franchise legislation in South Africa.

"Under the bill, franchisees are explicitly included as "consumers."

They are also given a number of consumer rights, including the right to equality, privacy, choice, information, disclosure, fair and responsible marketing, honest dealing, fair agreements, fair value, good quality, safety, and supplier accountability.

In addition, franchisees are protected against undue influence or pressure; unfair tactics; and false, misleading, or deceptive representations concerning material facts."

From the purpose section of the proposed franchise legislation:

Reducing and ameliorating any disadvantages experienced in accessing any supply of goods or services by consumers--

(i) who are low income persons or persons comprising low income communities;

(ii) who live in remote, isolated or low density population areas or communities;

(iii) who are minors, seniors or other similarly vulnerable consumers; or

(iv) whose ability to read and comprehend any advertisement, agreement, mark, instruction, label, warning, notice or other visual representation is limited by reason of low literacy, vision impairment, or limited fluency in the language in which the representation is produced, published or presented;

(c) promoting fair business practices;

(d) protecting consumers from--

(i) unconscionable, unfair, unreasonable, unjust or otherwise improper trade practices; and

(ii) deceptive, misleading, unfair or fraudulent conduct;

(e) improving consumer awareness and information and encouraging responsible and informed consumer choice and behaviour;

(f) promoting consumer confidence, empowerment, and the development of a culture of consumer responsibility, through individual and group education, vigilance, advocacy and activism;

(g) providing for a consistent, accessible and efficient system of consensual resolution of disputes arising from consumer transactions; and

(h) providing for an accessible, consistent, harmonised, effective and efficient

system of redress for consumers.

This is an interesting development, first treating franchisees as consumers and expliciting aiming to help consumers who cannot read.  A turn around from the disclosure laws that underwrite most franchise legislation.

Full post as published by Misleading Advertising Law on March 20, 2009 (boomark / email).