Faulty goods: repair, replace or refund under the CPA
Under South Africa's CPA, who chooses repair, replacement or refund when faulty goods come back within six months, and how to record each outcome.
By Achekam · · 4 min read · For Running a business businesses in South Africa
A customer walks back into the shop with a kettle that stopped working after five weeks. She wants her money back. The manager would rather send it for repair, or offer a new one, or give a voucher. It feels like the shop's call to make.
Under South Africa's Consumer Protection Act, it usually is not. The Act gives the customer a right to return defective goods within six months, and the National Consumer Commission has spelt out that the choice of remedy belongs to the customer. This guide explains the rule, what happens when a repair fails again, and how to process each outcome properly at the till and in the books.
The six-month right to return
The National Consumer Commission's Explanatory Note 7 of 2023 quotes section 56(2) of the CPA. Within six months after delivery, a consumer may return goods that fail the quality standards the Act sets, at the supplier's risk and expense, and the supplier must repair, replace or refund at the consumer's direction.
Three phrases carry the weight:
- Within six months after delivery. The clock starts when the customer received the goods, not when they were ordered or paid for.
- At the supplier's risk and expense. The cost of getting the item back and dealing with it falls on the business, not the customer.
- At the consumer's direction. The customer directs which remedy is used.
The note is the clearest single explanation of the rule, and the NCC's Explanatory Note 7 of 2023 sets out why the consumer, not the supplier, chooses the remedy.
The Act's reach is wide. The NCC says that under section 5 of the CPA it has jurisdiction over every transaction in South Africa and the promotion and supply of any goods or services in the country, unless exempted. A small shop and a national chain are both within it.
The consumer's choice, not the supplier's
The NCC's note is direct: under section 56(2) it is the consumer, not the supplier, who chooses whether defective goods returned within six months are repaired, replaced or refunded.
That reverses a habit many businesses have. "We will send it to the manufacturer first" or "we only do exchanges" may be a store policy, but it does not override the customer's right to choose a refund for goods that fail the Act's quality standards within the six months.
A repair offer does not bind the consumer
A business may still suggest a repair. The NCC's note says a supplier may offer to repair goods when the consumer has chosen a refund, but the consumer is not bound by that offer. The note cites a Tribunal decision in which the consumer was held entitled to cancel and claim a refund.
Offering is fine; insisting is not. If the customer has asked for a refund and declines the repair, the refund is the remedy.
Repaired goods that fail again within three months
Sometimes the customer does choose a repair. The dtic's booklet on the Act says that if repaired goods break again within three months, the consumer may return them for a refund or a replacement. A repair, in other words, does not close the matter: it starts a fresh short period in which a second failure gives the customer a further choice.
Record the repair date for every item you repair under this rule, so that a second return can be checked against it.
A worked example in words
The customer with the kettle chooses a repair. The shop sends it away and returns it repaired. Two months later it fails again. Because that is within three months of the repair, she can now return it for a refund or a replacement, as the dtic booklet describes. The shop's record of the repair date is what settles any argument about timing.
Refunds, credit notes and store credit in Achekam
How you process the outcome depends on how the item was sold.
Sold at the till. A supervisor or manager can refund all or part of a till sale in Achekam, with a reason, as its own document linked to the original sale. The goods are put back into stock by the refund, so set a returned faulty item aside and make sure it is not sold again as new. A till refund can also be given as store credit, issued as a voucher, but under the CPA that is an option to offer when the customer is entitled to choose a refund, not one to impose.
Sold on an invoice. A credit note is issued from the invoice it corrects, for the full invoice or for chosen lines, and is posted to the ledger. It can be downloaded as a PDF or e-mailed, and any leftover credit is held for the customer. There is no credit note without an invoice, so a business that sells this way should make sure each sale has its invoice.
A business that buys goods for its own use may find itself on the other side of these rules; when a small business is protected by the CPA explains when.
A returns checklist for staff
- Check the delivery date: is the return within six months?
- Check the fault: do the goods fail the quality standards?
- Ask the customer which remedy they want: repair, replacement or refund.
- Offer alternatives if you wish, but accept the customer's choice.
- Process a refund or credit with a reason, through the till or a credit note.
- Record any repair date, so a second failure within three months can be handled.
- Keep the item out of saleable stock.
Train the till team on this once and display the steps where returns are handled. A clear process protects the customer's rights and the shop's reputation, and it keeps the records straight; for what the receipt itself must show, see price displays and receipts under the CPA.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
