Consumer Commission making progress with recommendations regarding holiday clubs

2015-03-31
Adv Anton Alberts

The chief legal advisor of the Consumer Commission informed the FF Plus that a large number of holiday clubs have been summoned to appear before the Consumer Tribunal due to alleged malpractices, Adv. Anton Alberts, the FF Plus’ parliamentary spokesperson on trade and industry says.

Adv. Alberts says the next group of clubs, which includes one of the five largest clubs in South Africa, will also be summoned shortly to appear. Findings which the tribunal will be making in the process will be binding on the whole industry.

He says the commission will be asking the tribunal, amongst others, to declare all contracts which do not have a cancellation clause and is therefore everlasting, to be illegal.

Findings which have already been made must also be applied to other contracts and Section 42 of the Consumer Protection Commission regarding fraudulent schemes and offers, especially.

The point system concept will also be closely scrutinised as there is no legislation which regulate clubs according to this.

According to Adv. Alberts, the points system is nothing other than the issuing of coupons in the place of monetary values and in the South African monetary system it has no value. This means in effect that one does not get any value when one buys points.

“Every person who has bought points should therefore have the right to ownership of a fixed asset of clubs. In practice however, assets are placed intrusts and a single person who manages a club benefits from it. According to the commission it is in itself a fraudulent scheme.

“The FF Plus is glad that this stage has been reached where the tribunal will be able to start with hearings shortly to bring an end to this protracted saga,” Adv. Alberts says.

 

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