How South Africa's cooling-off right protects businesses from hard-sell "listings" and similar direct-marketing deals.
A South African business recently signed up – over the phone and by e-mail – for a "marketing and listings" service that promised better online visibility. Within days, red flags appeared: unclear deliverables, a surprise invoice, and silence when they asked questions. The company sent a written cancellation inside the statutory five-business-day cooling-off period, yet the provider kept chasing payment.
This case is a good reminder of what the Consumer Protection Act, 68 of 2008 (CPA) says about direct marketing and your right to cancel. It also shows how to respond when a supplier ignores a valid cooling-off.
What Counts as "Direct Marketing"?
Under the CPA, direct marketing is any approach to you – in person, by phone, e-mail, SMS or online – to promote or offer goods or services, or to get you to enter a contract. If you sign because of that approach (rather than walking into a store or proactively seeking out the supplier), the cooling-off right in section 16 applies.
The 5-day cooling-off right (Section 16, CPA)
If you conclude a transaction as a result of direct marketing, you may cancel for any reason, without penalty, within five business days after, and/or the later thereof:
- The day the agreement was concluded; or
- The day the goods and/or service were delivered to you.
Your notice must be in writing or another recorded form (email is fine). Once you cancel, the supplier must stop collection, and, if no goods were delivered, refund any payment within 15 business days. They must also tell you about this right at the time of the sale.
The client in this case concluded a "directory/listing" agreement following a sales approach, then received an invoice almost immediately. Within a few days, they telephonically cancelled, followed by written cancellation, and repeated their objections when the provider persisted.
Despite this, the supplier continued demanding payment and ignored the cooling-off. In our view, the client's cancellation fell squarely within section 16; the supplier is not entitled to payment and must withdraw the invoice. If harassment continues, interdict relief and/or a complaint to the National Consumer Commission are available escalation paths.
"But they already 'rendered services'..."
Providers often argue that "the work started" or "the listing went live." Section 16 does not ask why you are cancelling; it gives an unqualified right to cancel within the window. Where goods were delivered and must be returned, the Act sets a practical exchange; for services, the key is whether the deal arose from direct marketing and whether your notice was in time and properly recorded. If yes, no penalty may be imposed and collection must stop.
How to exercise the Right – clearly and defensibly
Keep it simple and on record:
- Send a dated e-mail stating you are exercising your section 16 cooling-off right and cancelling the agreement.
- Ask for written confirmation that the invoice has been withdrawn and that no further collection will be pursued.
- Preserve all correspondence (screenshots, call notes) and any sales material used to solicit the deal.
If the supplier persists, refer to section 16 again and note that continued demands may constitute harassment; signal your intention to involve the National Consumer Commission or seek interdictory relief, if needed.
Red flags to watch for in "listing/marketing" pitches
Most providers are legitimate; some are not. Be cautious when you see:
- Vague deliverables ("premium placement", "priority listing") with no measurable outputs.
- Pressure to "approve now" before you receive full terms in writing.
- Silence when you ask for service proofs (traffic reports, screenshots, campaign IDs).
- Invoices issued within days of a first call, especially before any work is verified.
A final note on time limits
If a supplier ignores a valid cooling-off and tries to pursue the invoice months or years later, remember general prescription rules: most simple debts prescribe after three years if not properly pursued in time. Don't rely on this as strategy – exercise your cooling-off clearly and immediately – but know the long-stop exists.
Think a sales call trapped you in a service you don't want? We can review your paperwork quickly, confirm whether section 16 applies, and help you put the cancellation and follow-up on a firm legal footing, calmly and in writing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
