Online Prices vs. In-Store Prices

In the evolving retail landscape of South Africa, consumers frequently encounter discrepancies between in-store and online prices for the same product. This raises important legal questions about pricing practices and consumer rights under the Consumer Protection Act 68 of 2008 (CPA) and the Electronic Communications and Transaction Act (ECTA).

Understanding the Legal Framework

The CPA on Displayed Prices

• Section 23: Mandates that a retailer must display a price for goods on sale and cannot charge more than the displayed price. In cases of multiple prices, the lowest displayed price prevails.

• Exceptions: The CPA recognizes exceptions for inadvertent and obvious errors in displayed prices.

The CPA on Advertised Prices

• Section 30: Prohibits misleading advertisements regarding the availability and pricing of goods or services.

• Definition of Advertisement: Includes any visual or oral communication, or any reference that promotes the supply of goods or services, including those on websites, online stores, or shopping apps.

Price Discrepancies: Online vs. In-Store

Retailers often justify higher in-store prices due to increased overhead costs. However, under the CPA's definition of advertisement, it appears that retailers are bound by the prices advertised on their digital platforms.

Implications for Consumers and Retailers

Consumer Rights

• Consumers may argue the right to be charged the lower online price when purchasing in-store, based on the CPA's provisions on advertised prices.

Retailer Obligations

• Retailers should ensure consistency in pricing across platforms to avoid potential legal disputes and consumer dissatisfaction.

Anticipating Future Clarifications

The National Consumer Commission is likely to provide further clarification on this matter, given its relevance in the current retail environment.

Legal Advice for Retailers and Consumers

Navigating the complexities of the CPA and ECTA requires expert legal guidance. Our law firm offers specialized advice to both retailers and consumers on issues related to pricing discrepancies and consumer rights.

Conclusion

The issue of different pricing for the same product online and in-store is a significant consumer concern in South Africa. Retailers must carefully consider their pricing strategies to comply with the CPA and avoid misleading consumers. For legal assistance on issues related to retail pricing, consumer rights, or compliance with the CPA and ECTA, please contact our law firm. Our team is equipped with the expertise to provide comprehensive legal support.