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Airlines in S.A. stand accused of ignoring the new Consumer Protection Act and run the risk of multimillion-rand fines.

Following several complaints, the National Consumer Protection Commission have analyzed airline contracts and found that most local carrier’s terms and conditions are currently in breach of the CPA.


Some of the issues relate to:
Non-refundable tickets
(The act says a consumer has the right to cancel an advance reservation, booking or order. The ticket is the consumer’s property and redeemable within three years)

Validity of airline tickets, ranging from three months to two years.
(The CPA says that a prepaid certificate, card, credit, voucher or similar device does not expire before three years.)

Over-selling and over-booking
(The CPA says that a consumer must be refunded the amount paid [with interest] and compensated for costs directly incidental to the airline’s breach of contract and that refunds must be made within 15 days.)

The Commisioner Mamodupi Mohlala has said the various airlines have until December 2 2011 to respond or they will face a compliance order which will force them to comply and apply fines (which can be HUGE). Though some Airlines are complaining that this will negatively impact on ticket prices they have little option but to bring their business model into compliance by tomorrow…or else.

Progress in regard to enforcement of the CPA is in the interest of consumers as well as of interest to DC’s. The CPA will soon be an aspect of the debt counselling space as new accounts opened with various banks and service providers will fall under the scope of the CPA and may provide some assistance to over-indebted consumers. Many consumers have, in the past, found themselves “locked into” undesired and unaffordable cell phone and gym contracts (just to pick 2 examples). The CPA should then be able to assist these consumers.