Have you ever signed up for a “marketing” or “business listing” service after a phone call or email, only to regret it a few days later? Many businesses fall into this trap. Fortunately, the Consumer Protection Act (CPA) gives you a clear way out through its cooling-off right.
At Mayet & Associates Attorneys, we often assist clients who are chased for payment even after they’ve validly cancelled. Here’s what you need to know about cancelling a direct marketing contract under section 16 of the CPA.
What is Direct Marketing?
Direct marketing happens when a supplier contacts you , by phone, SMS, email, or even in person, and persuades you to buy their service or product. If you didn’t seek them out, but they approached you, it counts as direct marketing.
The 5-Day Cooling-Off Period
If you sign a contract because of direct marketing, you have the right to cancel within five business days, no questions asked. This applies from the later of:
- The date you signed the contract, or
- The date the goods or services were delivered.
Your cancellation must be in writing (email is fine). Once sent, the supplier must:
- Stop chasing payment immediately.
- Refund you within 15 business days if you already paid.
- Confirm your right to cancel at the time of sale (a duty many suppliers ignore).
5 Steps to Cancel a Direct Marketing Deal
- Put it in Writing
Send a dated email or letter saying you are cancelling under section 16 of the CPA. - Be Clear and Simple
State: “I am exercising my right to cancel this agreement within the five-day cooling-off period.” - Ask for Confirmation
Request that the invoice be withdrawn and that no further collection attempts are made. - Keep Records
Save all emails, invoices, call notes, and any promotional material used to sell you the service. - Escalate if Needed
If the supplier ignores your notice, you can complain to the National Consumer Commission or apply to court for an interdict to stop the harassment.
Common Excuses from Suppliers
Some providers argue:
- “We already did the work”
- “The listing is live, so you must pay”
These arguments don’t hold. Section 16 gives you an unconditional right to cancel within the time limit. It doesn’t matter whether services have started or not.
Red Flags in “Marketing” or “Listing” Offers
Be cautious when you notice:
- Vague promises like “premium exposure” without real deliverables.
- High-pressure tactics to sign before seeing terms in full.
- Invoices issued within days of the first call.
- Silence when you request proof of services.
What If They Chase You Later?
If a supplier tries to collect months or years later, remember that most simple debts prescribe after three years if not properly pursued. This doesn’t replace the cooling-off rule, but it gives you an extra layer of protection.
Protect Your Business with Legal Support
If a sales call has left you tied into a contract you don’t want, don’t panic. Act quickly: send a clear cancellation notice, keep all evidence, and know your rights under section 16 of the CPA.
At Mayet & Associates Attorneys, we assist businesses across South Africa to:
- Review whether a cooling-off right applies.
- Draft strong cancellation notices.
- Push back against suppliers who ignore the law.
Need advice? Contact us today to make sure your cancellation is legally watertight.
