Added Legal Value Newsletter Volume 3 Number 1

March 2010

No more Legal Verbal Diarrhoea: Ultimate Consumer Protection

The National Credit Act 34, 2005 ‹NCA› and the Consumer Protection Act 68,2008 ‹CPA› go very far to demand the use of plain language in commerce.

Section 64 of the NCA is limited to documents relating to credit agreements but section 22 of the CPA applies the plain language requirement to a much wider range of documents. It requires plain language from the producer of any notice, document, or visual representation required by the CPA OR ANY OTHER LAW.

This means that the wording of many of the contracts that have been with us for many years, will have to be simplified. It includes credit agreements ‹such as mortgage bonds and vehicle purchases on credit›, lease agreements, franchise agreements, service agreements, labour contracts, sale of land agreements and suretyships.

What is plain language?

The NCA in s64‹2› and the CPA in s22‹2› defines plain language. The definition is a mouthful ‹and one almost wants to ask: “give it to us in plain language!”›

It must be reasonable to conclude that an ordinary consumer of the class of persons form whom the the notice, document, or visual representation ‹document› is intended, with average literacy skills, and minimal experience as a consumer of the relevant goods or services could be expected to understand the content, significance and import. In determining this, one should have regard to the context, comprehensiveness and consistency in the document. Also to the organisation, form, style, vocabulary, usage and sentence structure of the document and the use of any illustrations, examples, headings or other aids to reading and understanding.

It will probably be best to pay attention to the following:

1. Use short sentences;
2. Use the easiest form of synonym availble for every word;
3. Don’t use Latin;
4. Use the active voice rather than the passive voice ‹eg. “He kicks the ball” instead of “The ball is kicked by him”›;
5. Replace any legal jargon with easy language.

Guidelines

The National Credit Regulator ‹NCR› may publish guidelines [NCA s64‹3›] on how to determine whether a document is written in plain language. When published, they will probably made available at http://www.ncr.org.za/Guidelines_credit%20providers.php

At present, the NCR is informing credit consumers as follows:

“You have the right to receive information and documents in plain language. Thismeans that the contents, meaning and importance of the document must be easy to understand. Ask if you do not understand. Do not sign unless you understand the terms and conditions of the agreement.”

CPA s22‹3› and ‹4› authorizes the National Consumer Commission to publish such guidelines and invite public comment. These guidelines have not yet been published. However, comprehensive guidelines exist elsewhere. An example can be found at http://www.plainlanguage.gov/howto/guidelines/bigdoc/TOC.cfm

Greetings from the 2010 Soccer Word Cup jurisdiction.

Go Bafana Bafana!!

THIS IS YOUR YEAR!!!

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