Wedding venue must pay back couple after postponement due to Covid-19

A Johannesburg wedding venue has been ordered to refund a couple and pay a fine after refusing to pay their money back when their wedding was postponed during the Covid-19 pandemic.

The National Consumer Commission (NCC) on Tuesday welcomed the decision handed down by the National Consumer Tribunal (NCT) declaring the conduct of Crystal Tears Investment, trading as Misty River, as prohibited conduct.

This followed an NCC investigation into allegations of contraventions of the Consumer Protection Act (CPA) levelled against Crystal Tears Investment for refusing to refund the consumer their money as requested.

“The consumer booked a venue at Misty River for their wedding and made a total payment of R25 750. The wedding was scheduled to take place on January 16, 2021.

“The supplier later informed the consumer that the wedding would be postponed to an unspecified date due to the Covid-19 pandemic, which resulted in a ban on social gatherings. The decision was not accepted by the complainant, who elected to cancel the agreement and requested a refund instead,” the NCC said.

The National Consumer Tribunal found that Crystal Tears Investment had contravened Sections 19(2)(i), 19(6)(c), and 21(9) of the CPA. Section 19(2)(i) provides that a supplier has the responsibility to deliver goods or perform a service on the agreed date and at the agreed time. In terms of section 19(6)(c), a consumer may cancel the agreement without penalty if a supplier fails to deliver the goods or perform any services at a location, on a date or time other than as agreed with the consumer and may treat any delivered goods or performed services as unsolicited goods or services.

Section 21(9) provides that if a consumer has made any payment to a supplier in respect of any charge relating to unsolicited goods or services, or delivery of any such goods, the consumer is entitled to recover that amount, with interest from the date on which it was paid to the supplier, in accordance with the prescribed rate of interest Act 55 of 1975.

Crystal Tears Investment was ordered to refund the consumer R25 750, together with an interest at the rate of 10.5% within 20 business days.

The supplier was also ordered to pay an administrative fine of R15 000 within 60 business days.

Acting National Consumer Commissioner Thezi Mabuza said suppliers must understand their obligations under the CPA.

“Suppliers are not allowed to take money from consumers and refuse to refund them when failing to provide the services or goods for which the funds were paid.

“We welcome the decision by the Tribunal, and we believe that it will deter other suppliers from engaging in the same conduct. This judgment sends a clear message to suppliers not to hide behind the pandemic, and in so doing contravene the CPA. We also urge consumers to know and understand their consumer rights,” Mabuza said.

Cape Times