FEES AND WARRANTIES
Regulator to appeal judgment on extended warranties and club fees sold by Lewis
The National Credit Regulator (NCR) is set to take its three-year-old battle against furniture group Lewis Stores to the Supreme Court of Appeal (SCA). The SCA has granted the NCR leave to appeal the High Court in Pretoria’s judgment on extended warranties sold by Lewis, which sells mainly to lower-income groups through in-store credit facilities, and club fees charged by the retailer. It said the fees and warranties were not a contravention of the National Credit Act. In 2016 the NCR referred Lewis to the National Consumer Tribunal for contravening the act by charging consumers warranties for the furniture they purchased even when warranties were already provided by the manufacturers. The NCR also said Lewis’s customers were forced to pay club fees in contravention of the act. In June 2017 the tribunal ruled in Lewis’s favour, finding that neither the warranties nor the fees contravened the act. The tribunal found that the act allowed Lewis to include the cost of an extended warran...
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