THE FOSCHINI GROUP LIMITED - Referral by the National Credit Regulator to the National Consumer Tribunal

Release Date: 04/07/2017 11:05
Code(s): TFG TFGP
 
Wrap Text
Referral by the National Credit Regulator to the National Consumer Tribunal

The Foschini Group Limited
Registration number: 1937/009504/06
Share codes: TFG-TFGP
ISIN codes: ZAE000148466 - ZAE000148516
("TFG" or “the Company”)


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

Foschini Retail Group (Pty) Ltd (“FRG”), a wholly-owned subsidiary of the
Company, has been referred to the National Consumer Tribunal (“NCT”) for
allegedly being in breach of the National Credit Act (“NCA”). FRG sells
Club magazine subscriptions to consumers, which the National Credit
Regulator (“NCR”) considers to be “charging” a “fee” that is not permitted
by the NCA.

TFG’s Club products are optional magazine subscriptions with insurance and
other benefits which can be subscribed to at application stage, or later
via telemarketing and other marketing channels. Consumers can cancel their
subscription at any stage and without penalty.

The Company is of the view that FRG’s referral is based on an incorrect
interpretation of the applicable legislation, as the NCA does not limit
which products retailers may sell to its customers on their credit
accounts. This was also recently confirmed by the NCT in a similar case
against Lewis Stores. The referral is also similar to the referrals
regarding Club “fees” against Edcon and Mr Price.

The Company will oppose FRG’s referral to the NCT, as it does not agree
with the view held by the NCR for the reasons stated above, amongst others.
The Company also obtained the opinions 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 FRG in these proceedings.

4 July 2017

Sponsor:
UBS South Africa Proprietary Limited

Date: 04/07/2017 11:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Email this JSE Sens Item to a Friend.

Share This Story