A common scenario is unfolding across South Africa: a business receives a slick sales pitch over the phone or via email, promising “enhanced online visibility” or “priority listings.” Tempted by the offer, the business signs up, only to discover soon after that the service is vague, invoices arrive almost immediately, and any request for clarity is met with silence.
Fortunately, the Consumer Protection Act 68 of 2008 (CPA) provides an important safeguard in these situations: the statutory five-day cooling-off period. When properly invoked, this right empowers businesses to cancel such agreements without penalty, regardless of the supplier’s insistence.
What Qualifies as Direct Marketing?
The CPA defines direct marketing as any unsolicited approach, whether in person, over the phone, by email, SMS, or digital communication, aimed at persuading you to purchase goods or services. If the contract is concluded because of that outreach (rather than you approaching the supplier on your own initiative), the cooling-off protections in section 16 of the CPA come into play.
The Five-Day Cooling-Off Right
Section 16 allows consumers and businesses to withdraw from direct marketing contracts within five business days, starting from either:
- the date on which the contract was concluded, or
- the date the goods or services were supplied, whichever comes later.
The notice must be in writing or some other recorded form, which makes email the simplest option. Once such a cancellation is sent, the supplier is obliged to:
- stop all collection efforts;
- refund any amounts already paid within 15 business days (where no goods have been delivered); and
- formally notify the consumer of this right at the point of sale.
When Suppliers Ignore Cancellation
In a recent matter, a business concluded a “directory listing” contract after a sales call, but quickly exercised its cooling-off right via both phone and written correspondence. Despite this, the supplier pressed for payment and disregarded the statutory cancellation.
Under section 16, that cancellation was valid. The supplier has no lawful claim to payment and must retract the invoice. If demands persist, the business has remedies: an application for an interdict to stop harassment or a complaint lodged with the National Consumer Commission.
The “Work Has Already Started” Argument
Suppliers sometimes claim that once services have begun, for example, a listing has gone live, cancellation rights no longer apply. This is incorrect. Section 16 provides an absolute right to cancel within the prescribed timeframe. The reason for cancellation is irrelevant, and no penalty may be imposed provided notice is properly given within the five-day window.
Exercising the Right Effectively
Businesses should act quickly and keep a clear record:
- Send a dated email explicitly stating you are cancelling under section 16 of the CPA.
- Request written confirmation that the contract is cancelled and any invoices withdrawn.
- Retain all supporting documents – emails, call notes, promotional materials, in case of dispute.
If the supplier refuses to comply, restating your rights under the CPA and warning of escalation to the Commission is usually enough to bring matters to a halt.
Warning Signs in Marketing Pitches
While many service providers operate legitimately, be wary of:
- Promises of “premium placement” or “priority visibility” without measurable outputs.
- Urgent pressure to commit before receiving full terms in writing.
- Lack of transparency when asked for proof of performance (such as analytics or campaign reports).
- Invoices issued within days of a first conversation, before any tangible service is delivered.
A Note on Prescription
If a supplier continues to demand payment months or years later, remember that most contractual debts prescribe after three years if not pursued properly. That said, relying on prescription should never replace asserting your rights immediately, invoking section 16 promptly is the cleanest solution.
