News > Commercial Law
 Parts of the Consumer Protection Act (CPA) took effect on 24 April 2010. The relevant provisions of the CPA that are now in force, relate to the following issues: • the definitions used in the Act; • the purpose, policy and application of the Act; and • the establishment and functions of the National Consumer Commission. |
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 The Department of Health has announced that its controversial regulations aimed at protecting children from unhealthy food choices will not be implemented until at least 2011. Fortunately, these government regulations are not the only limitations placed on advertisers of so-called “junk food”, whose target market is too young to make informed dietary choices. This article takes a look at the current position. |
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 The Protection of Information Bill, 2009 (“the Bill”) was published in the Government Gazette on 5 March 2010 for general comment. The Minister of State Security intends to introduce the Bill in the National Assembly in due course. If it comes into effect, the Bill will replace the Protection of Information Act, 1982. |
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 With the South African competition authorities dishing out staggering fines, the latest being Pioneer Foods, which were fined by the Competition Tribunal in the amount of just under R200 million, other African countries are gearing up to enforce competition law in their respective countries. |
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 The following article by Adams & Adams professional assistant Jonathan Maphosa was published on Law24.com on 3 December 2009. Legal steps for employers contemplating retrenchment or dismissal for poor work performance Retrenchment procedures In light of the steep increase in large scale retrenchments embarked upon by local industries, the requirements for a fair retrenchment process in terms of the Labour Relations Act (“LRA”) have become the subject of greater scrutiny by the Labour Court and the Commission for Conciliation, Mediation and Arbitration (“CCMA”). |
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 The Protection of Personal Information Bill, 2009 (“the Bill”) has been approved by cabinet. Although the Bill is not yet in force, there is an indication that parliament intends to pass it in time for the Soccer World Cup in 2010. Apart from the right to privacy in the Constitution, limited provisions in certain Acts and the common law, South Africa does not currently have any specific legislation that regulates the processing and protection of personal information (data protection). However, there is a need to bring South Africa’s legislation in line with international standards relating to data protection by way of a comprehensive statute. |
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 President Jacob Zuma has signed the Competition Amendment Bill into law. From the operative date, it will be a criminal offence in terms of the Competition Amendment Act (the Act) for a director or a manager of a firm to cause the firm to engage in cartel conduct, or to knowingly acquiesce in the firm’s involvement in cartel conduct. Directors and managers found guilty of these provisions could face imprisonment of up to 10 years, or a fine of up to R500 000, or both a fine and imprisonment. |
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 Whilst Adams & Adams has always advised on competition law related matters, as the importance of this field of expertise has become commercially more relevant, the Competition Law Group was established in 2009. The group centralises competition law expertise in the firm and provides professional advice, not only on competition law, but on the interface between competition law and intellectual property. It advises on issues around, for example, prohibited practices, mergers and acquisitions, exemption applications and the interface between intellectual property and competition law. |
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 The stand alone commercial law section of Adams & Adams, which forms part of the Commercial, Property and Litigation department has now been in existence for more than two years. |
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 The Competition Commission is celebrating its 10-year anniversary later this year. It has reason to celebrate as there is consensus that the commission has ensured that the Competition Act (“the Act”) has become a central point in the South African commercial landscape. A number of high-profile cases have enjoyed prominence in the media and the commission is steadily increasing its enforcement capacity. Compliance with the Act has steadily moved up on the agendas of board meetings as failure to do so could deliver a destructive blow to any company’s reputation and financial position. To read more on this topic see: Competition law breaches are a corporate governance risk. |
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 The Competition Commission is celebrating its 10th anniversary later this year. It has reason to celebrate, as it has ensured that the Competition Act has become a central point in the South African commercial landscape. A number of cases have enjoyed prominence in the media and the Commission is steadily increasing its enforcement capacity. Compliance with the Act has steadily moved up on the agendas of board meetings as failure to comply could deliver a destructive blow to any company’s reputation and financial position. To read more on this topic see: Competition law breaches are a corporate governance risk. |
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 It does not happen very often, but sometimes, in the enforcement of competition law, complex jargon is used to describe particular anti competitive conduct or a particular approach to the interpretation and application of competition law. First, it was the concept of “bright lines” used in the context of mergers and acquisitions which had competition law practitioners and clients alike slightly confused as to the exact meaning thereof. Just recently, the term “super dominance” was used in relation to excessive pricing in the matter of Mittal Steel South Africa and others v Harmony Gold Mining Company Limited and others. Prior to the use of the term “super dominance” the writer was under the impression that once a firm was dominant it was dominant - no “super powers” were attributable to the firm. |
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 On 1 April 2009 the increased merger thresholds, issued by the Minister of Trade and Industry, came into effect (See our newsflash “Increase in merger thresholds”). The increase in thresholds has the effect that a number of mergers which would previously be classified as intermediate or large mergers will now be classified as small mergers and will therefore no longer require mandatory notification. The move to increase merger thresholds was met with approval by business. The Competition Commission has, however, raised concerns that certain anti-competitive mergers could now escape regulatory scrutiny. In an effort to address these concerns the Commission has issued a Guideline on Small Merger Notifications which indicates that the Commission will require notification of all small mergers between parties that meet certain criteria. (Read more) |
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Signed into law by former President Kgalema Motlanthe on the 24th April and gazetted on 29 April 2009, the Consumer Protection Act 68 of 2008 (“the Act”), is now officially law. The Act will only come into full force and effect in 18 months after promulgation, namely on 29 October 2010, as per the transitional provisions. This is to allow sufficient time for the establishment of the National Consumer Commission, an enforcement /investigative body on consumer protection issues, which it is anticipated, will be established after 12 months from the date of signing of the Bill by the former President. The National Consumer Commission will commence implementation of the Act on 29 October 2010. The Act replaces, in a new and simplified manner, existing provisions from a number of Acts, but most notably, the following five Acts: the Consumer Affairs (Unfair Business Practices) Act of 1988, Trade Practices Act of 1976, Sales and Service Matters Act of 1964, Price Control Act of 1964, and Merchandise Marks Act of 1941 (specifically Sections 2-13, and 16-17). Furthermore, the Minister must still publish all the required Regulations within 12 months of promulgation of the Act. |
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 Act not yet in force The long-awaited new Companies Act has now been signed. The President assented to the Act on 8 April 2009 and the final version was published in the Government Gazette on 9 April 2009. The Act is called the Companies Act, 2008 and will replace the current 1973 version. Although the new Act has been signed and published, it is not yet in force. It will only take effect on a date announced by the President in the Government Gazette. However, that date may not be earlier that one year following the date on which the President signed the Act. Accordingly, the Act will not come into force before 9 April 2010. However, it is expected that the effective date will only be in the second half of 2010 in order for regulations to be put into place and for CIPRO to make the necessary preparations. |
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