Consumer Goods and Services Ombud NPC and Another v Voltex (Pty) Ltd and Others (18096/2017) [2021] ZAGPPHC 309 (26 March 2021)

Consumer Goods and Services Ombud NPC and Another v Voltex (Pty) Ltd and Others (18096/2017) [2021] ZAGPPHC 309 (26 March 2021)

The court found that the Consumer Goods and Services Industry Code was lawfully and properly proclaimed by the Minister under section 82 of the Consumer Protection Act, following the required public consultation and recommendation process. The Code is not irrational or unreasonable, and the power to levy fees is necessary and incidental to the operation of the Ombud scheme. The CPA is not a money bill and does not require parliamentary approval for the imposition of industry levies. The Code is mandatory for all suppliers in the industry, and the applicants have standing to enforce compliance. Non-joinder of other participants is not fatal as all materially interested parties were...

Citation
[2021] ZAGPPHC 309
Parties
Applicant: Consumer Goods and Services Ombud NPC; Applicant: Consumer Goods and Services Ombudsman; Respondent: Voltex (Pty) Ltd; Respondent: Minister of Trade and Industry; Respondent: The Consumer Goods Council; Respondent: Astral Operations Limited
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
26 March 2021
Case Number
18096/2017
Procedural Posture
Review Application / Judgment After Hearing of Application and Counter Applications
Outcome
Application for declaratory relief granted; counter-applications by first and fourth respondents dismissed with costs.
Judges
Strijdom
Legal Topics
Industry Code Accreditation, Compulsory Membership, Levies and Fees, Ultra Vires, Constitutional Review, Unjust Enrichment
Administrative Law Commercial and Corporate Civil Procedure Industry Code Accreditation Compulsory Membership Levies and Fees Ultra Vires Constitutional Review +1 more

Case Brief

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Parties

Consumer Goods and Services Ombud NPC

Applicant

Consumer Goods and Services Ombudsman

Applicant

Voltex (Pty) Ltd

Respondent

Minister of Trade and Industry

Respondent

The Consumer Goods Council

Respondent

Astral Operations Limited

Respondent

Procedural Posture

Review Application / Judgment After Hearing of Application and Counter Applications

Legal Issues

  1. 1 Whether the application should be dismissed for non-joinder of materially interested parties.
  2. 2 Whether the Consumer Goods and Services Industry Code was lawfully and properly proclaimed by the Minister under section 82 of the Consumer Protection Act.
  3. 3 Whether the content of the Code is intra or ultra vires the Minister's powers under the Act, specifically regarding compulsory membership and levies.

Ratio Decidendi

The court found that the Consumer Goods and Services Industry Code was lawfully and properly proclaimed by the Minister under section 82 of the Consumer Protection Act, following the required public consultation and recommendation process. The Code is not irrational or unreasonable, and the power to levy fees is necessary and incidental to the operation of the Ombud scheme. The CPA is not a money bill and does not require parliamentary approval for the imposition of industry levies. The Code is mandatory for all suppliers in the industry, and the applicants have standing to enforce compliance. Non-joinder of other participants is not fatal as all materially interested parties were...

Court Disposition

Application for declaratory relief granted; counter-applications by first and fourth respondents dismissed with costs.

Orders

  • A declaratory order is granted in terms of prayers 1, 2, 3, 4, 5, 6, 7.1, 7.2, and 8 of the amended notice of motion.
  • The counter-application of the first respondent is dismissed with costs.