National Consumer Commission v M. Kleynhans t/a 3 Palms Bed and Breakfast Kuilsriver (NCT/63897/201673(2)(b)) [2016] ZANCT 62 (24 December 2016)

National Consumer Commission v M. Kleynhans t/a 3 Palms Bed and Breakfast Kuilsriver (NCT/63897/201673(2)(b)) [2016] ZANCT 62 (24 December 2016)

The Tribunal found that the Respondent's cancellation policy, which retained 50% of the booking fee despite 76 days' notice, was unreasonable and contrary to the Consumer Protection Act. The Respondent failed to act diligently to mitigate losses and did not adequately inform the Complainant of the cancellation policy. The Tribunal held that the policy contravened Sections 17(3)(b), 17(4), 48, and 49 of the CPA. The Tribunal considered industry practice but determined that consumer rights must be enforced. The Respondent was ordered to refund the Complainant the balance of the booking fee.

Citation
[2016] ZANCT 62
Parties
Applicant: National Consumer Commission; Respondent: M. Kleynhans t/a 3 Palms Bed and Breakfast Kuilsriver
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
24 December 2016
Case Number
NCT/63897/201673(2)(b)
Procedural Posture
Review Application / Final Judgment After Hearing
Outcome
The application is granted. The Respondent's conduct is declared prohibited and the Respondent is ordered to refund the Complainant.
Judges
F Sibanda, L Best, B Dumisa
Legal Topics
Consumer Protection Act, Unreasonable Cancellation Fee, Unfair Contract Terms, Notice of Cancellation, Industry Practice, Refund of Booking Fee
Commercial and Corporate Civil Procedure Consumer Protection Act Unreasonable Cancellation Fee Unfair Contract Terms Notice of Cancellation Industry Practice Refund of Booking Fee

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Parties

National Consumer Commission

Applicant

M. Kleynhans t/a 3 Palms Bed and Breakfast Kuilsriver

Respondent

Procedural Posture

Review Application / Final Judgment After Hearing

Legal Issues

  1. 1 Whether the Respondent's cancellation policy and retention of 50% of the booking fee contravened the Consumer Protection Act.
  2. 2 Whether the cancellation charge imposed was unreasonable given the length of notice and industry practice.
  3. 3 Whether the Respondent failed to act diligently to mitigate losses after cancellation.

Ratio Decidendi

The Tribunal found that the Respondent's cancellation policy, which retained 50% of the booking fee despite 76 days' notice, was unreasonable and contrary to the Consumer Protection Act. The Respondent failed to act diligently to mitigate losses and did not adequately inform the Complainant of the cancellation policy. The Tribunal held that the policy contravened Sections 17(3)(b), 17(4), 48, and 49 of the CPA. The Tribunal considered industry practice but determined that consumer rights must be enforced. The Respondent was ordered to refund the Complainant the balance of the booking fee.

Court Disposition

The application is granted. The Respondent's conduct is declared prohibited and the Respondent is ordered to refund the Complainant.

Orders

  • The Respondent contravened Section 17(3)(b) read with Section 17(4) of the Consumer Protection Act.
  • The Respondent's conduct is declared prohibited.