The hospitality industry has no real specific guidelines on the Consumer Protection Act and how it will affect the sector, says Ric Hutton, partner at www.sleeping-out.co.za.
Guest house owners have said that the way they currently do business will require additional responsibility and a better understanding of the Act.
He says there are several areas that are going to be challenging for accommodation establishments with regard to the CPA. “For example, facilities that are offered must be available. If your website offers certain facilities that are unavailable due to routine maintenance, the establishment is responsible and could be penalised and guests who may be affected must be advised in advance.”
Probably the most daunting aspect, says Hutton, is the one regarding consequential damage. A booking cancelled by an establishment can have far-reaching consequences if the guest claims damages for a missed business meeting that is strategically important or for his international travel costs etc.
Hutton believes the industry can expect to see a number of test cases being fought. The judgments stemming from these cases, he says, will provide the frame of reference for future disputes.
Rachael Penaluna
