Gauteng-Based Fast Food Chain Fined R1m for Consumer Protection Violations

In a landmark decision underscoring the importance of consumer rights, the National Consumer Tribunal has imposed a hefty fine of R1 million on Braai Block, a popular Gauteng-based fast food chain. This penalty comes following a series of violations of the Consumer Protection Act (CPA), which were initially flagged by a vigilant consumer.

The fine was meted out after it was confirmed that Braai Block omitted crucial details such as the location of its trading address on tax invoices and inconsistently charged a service fee based on the cost of each meal. These discrepancies in service fees varied from one transaction to another, depending on the meal’s price, thus flouting the CPA’s stipulations on pricing transparency.

The National Consumer Commission (NCC), upon receiving the tip-off, promptly initiated an investigation into these allegations. Their findings unearthed that Braai Block had indeed breached section 23(6)(a) pertaining to price display and section 26(3)(b) regarding the inclusion of an address on sales records—the latter being essential for authenticating the trading premises.

Section 23(6)(a) specifically mandates that suppliers should not charge consumers more than the price displayed for any goods or services. This rule aims to maintain pricing transparency and fairness in trade practices. The violation of this rule implies that consumers might have been unknowingly overcharged, or at least, confused about the pricing of the meals they purchased.

Additionally, the lack of a consistent trading address on sales records not only breaches the CPA but also raises questions about the traceability and accountability of the service provider. This lapse in providing essential information potentially complicates issues such as product returns or legal accountability, should consumers seek redressal.

Acting Commissioner of the NCC, Hardin Ratshisusu, hailed the Tribunal's ruling as a pivotal moment for consumer protection in South Africa. He emphasized that the hefty penalty not only underscores the significance of adhering to the CPA but also serves as a stern warning to other suppliers to maintain transparency and fairness in their business practices.

Braai Block prides itself as being the world’s first natural organic braai fast food chain, with a footprint spanning five outlets across the country. Despite its pioneering organic focus, the chain's flouting of consumer laws has slated its reputation, casting a shadow over its claims of innovation and consumer focus. The company now faces the challenge of regaining consumer trust while rectifying its business practices to conform with legal and ethical standards.

This ruling is a reminder that all suppliers, regardless of size or industry, are obliged to adhere strictly to consumer protection laws. It reinforces the power and necessity of consumer vigilance and legal frameworks designed to protect consumer rights from potentially predatory business practices.