National Consumer Tribunal Fines Braai Block R1 Million for CPA Violations

The Tribunal imposed a R1 million administrative penalty on the food chain, which must be paid within 90 days.

The National Consumer Commission (NCC) has applauded the National Consumer Tribunal's ruling against Gauteng-based fast food chain Braai Block for violating the Consumer Protection Act (CPA). The Tribunal imposed a R1 million administrative penalty on the food chain, which must be paid within 90 days.

The NCC’s investigation was initiated following a consumer complaint, which alleged two major violations:

Omission of Trading Address: Braai Block failed to include its trading address on tax invoices, contravening Section 26(3)(b) of the CPA.

Unjustified Service Fees: The chain charged a variable service fee on transactions without clear disclosure, violating Section 23(6)(a) of the CPA, which prohibits suppliers from charging prices higher than the displayed amount.

These findings were confirmed by the Tribunal, which deemed Braai Block’s practices deceptive and disrespectful toward its customers.

NCC’s Response

Acting NCC Commissioner Hardin Ratshisusu hailed the Tribunal's decision as a milestone in consumer protection.

“This ruling reinforces the rights of consumers to receive clear, accurate, and honest information about the cost of goods and services. It also serves as a warning to other suppliers to adhere strictly to the CPA,” Ratshisusu stated.

Braai Block’s Operations

Braai Block, which brands itself as the world’s first natural organic braai fast food chain, operates five outlets across South Africa. Despite its marketing claims, the Tribunal’s findings highlight serious shortcomings in its adherence to consumer protection laws.

Implications for Businesses

The R1 million penalty underscores the importance of compliance with the CPA, particularly in the food and retail sectors. Businesses are required to:

• Clearly disclose all costs, including service fees.
• Include trading addresses and other essential details in sales records.

Failure to comply can result in significant financial and reputational damage.

Consumer Empowerment

The ruling is a testament to the effectiveness of South Africa’s consumer protection mechanisms. Consumers are encouraged to report violations to the NCC, which plays a critical role in ensuring fair and transparent business practices.

By holding Braai Block accountable, the Tribunal has sent a strong message that deceptive practices will not be tolerated, safeguarding consumer rights across the nation.