The National Consumer Protection Commission (NCC) issued a warning to owners of spaza shops regarding the addition of non-obvious charges when paying by card, emphasizing the need to protect consumers from unexpected costs at the checkout.
This warning came amid reports from buyers that they are being charged extra amounts—R2, R5, or even R10—when purchasing daily necessities with a bank card. This practice has raised concerns about consumer rights, especially in impoverished areas where many residents rely on spaza shops for basic groceries and use bank cards for transactions.
The regulatory body stated that suppliers are obligated to comply with the Consumer Protection Act (CPA) and ensure clear disclosure of the prices consumers must pay.
The NCC reported that according to the legal position, 'the argument is clear and beyond doubt.' The Commission and the Consumer Goods and Services Ombudsman (CGSO) indicated that charging additional, undisclosed fees for card payments violates the principles of consumer protection and agreements with traders.
The regulatory body added that sellers must guarantee proper disclosure of any additional payments to consumers, as well as compliance of pricing policies with the Consumer Protection Act. It was noted that consumers must know the full cost of the purchase before completing the transaction, especially if an additional charge is related to the method of payment.
The NCC acknowledged the difficulties faced by small businesses but stated that sympathy cannot justify exploitation. The Commission emphasized that the poorest segments of the population bear the greatest burden from extra card fees.
According to Section 23 of the Consumer Protection Act (CPA), suppliers are strictly obliged to adhere to the displayed price of the goods. If the price tag indicates a price of R10.00, the consumer must pay exactly that amount. Adding a hidden fee at the time of payment violates the consumer's right to transparent pricing.
The Commission noted that this issue causes particular concern in communities where access to large supermarkets is limited, forcing people to depend on spaza shops for essential goods. Furthermore, the commission is engaging with local business forums and spaza shop owners to raise awareness about consumer rights and promote CPA compliance.
The South African Payments Association (PASA) also clarified that traders are prohibited from charging customers extra amounts for purchases made using a bank card. PASA, which is regulated by the South African Reserve Bank to control its members' participation in the National Payment System, stated that its rules require financial institutions providing card payment services to traders to adhere to the 'no surcharge' rule.