MR PRICE GROUP LIMITED - Referral by the National Credit Regulator to the National Consumer Tribunal for alleged breach of the NCA

Referral by the National Credit Regulator to the National Consumer Tribunal for alleged breach of the NCA

Mr Price Group Limited
Registration number 1933/004418/06
Incorporated in the Republic of South Africa
ISIN: ZAE000200457
JSE share code: MRP
(“the Company” or “the Group”)

REFERRAL BY THE NATIONAL CREDIT REGULATOR TO THE NATIONAL CONSUMER
TRIBUNAL FOR ALLEGED BREACH OF THE NATIONAL CREDIT ACT

We refer to the media release issued today by the National Credit
Regulator (NCR). The NCR alleges that the Group is in breach of the
National Credit Act (NCA) as a result of including a club fee on credit
agreements. They contend the charging of this fee is not permitted by the
NCA. The Group responds as follows:

The view held by the NCR only pertains to Miladys (one of the six trading
divisions of the Group) who offer the club product to their account
customers. It is imperative to note that this product is a standalone
product which entitles voluntary signed up members to a number of benefits
including loyalty vouchers, savings with affinity partners and lifestyle
magazines. Over the years, customers have been happy with the services and
benefits associated with the club and as a Group we believe in the value
offering which supports our proposition of great fashion and value.

The Company is opposing the referral to the National Consumer Tribunal
(NCT) instituted by the NCR, as we do not agree with the view held by
the NCR. We also obtained the advice of Senior Counsel, which was to the
effect that the NCR’s position is untenable as it appears that the NCR
has no rational basis for the relief sought against the Company in these
proceedings. It should also be noted that the underlying judgement
handed down by the NCT against Edcon Limited, upon which the NCR relies
in holding this view, is being appealed.

Durban
1 June 2017

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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