Role of legislation on marketing
The Constitution of the Republic of South Africa, 1996, regulates the advertising and marketing
sector through Sections 9, 16, and 36. The Consumer Affairs (Unfair Business Activities) Act of 1988 is
the primary law addressing harmful business activities in the sector. A harmful business practice is
one that directly harms relationships between the industry and consumers, unfairly prejudges
consumers, deceives consumers, or negatively affects consumers. The Consumer Affairs Committee,
established under the Act, is entrusted with investigating deceptive advertising and marketing
activities. The advertising and marketing industry has established a widely recognized system of
Codes of Conduct to ensure compliance with these regulations (Government, 2002).
https://www.gcis.gov.za/content/newsroom/speeches/pcomm/transformation-advertising-
marketing-industry-existing-legislation-advertising-and-marketing
Organizations must be aware of five marketing laws: deceptive advertising, copyright violations,
privacy of children, SMS advertising, and live streaming of videos. Deceptive advertising requires
truthfulness in advertising, and false advertising laws can lead to lawsuits and consumer restitution.
Companies must also be truthful about their promises and expectations. The Children's internet
Privacy Protection Act requires platforms to obtain consent from parents before collecting personal
data from children under the legal age of consent. Businesses must also be cautious with SMS
advertising, as it requires prior written agreement from the user. Live streaming of videos on social
media can be dangerous if not planned carefully, as it may display clients/employees without their
authorization or use copyrighted music. It is crucial to avoid loitering, trespassing, and ensuring that
all individuals involved have completed a release form before recording (BAER, 2021).
https://baerpm.com/2021/06/10/5-marketing-laws-and-regulations-you-should-know/
Advertising laws govern the messaging businesses use to persuade customers to buy their goods and
services. Violations of these laws can result in significant financial penalties, including fines and
reputational harm. One of the "Four Ps" of marketing is price, which is constrained by marketing
restrictions. Predatory pricing is illegal, and retailers can upsell customers on more expensive items
by advertising sales and only stocking a small number of discount items that sell out quickly. Bait-
and-switch advertising is also prohibited. Businesses that mislead customers into believing discounts
are available are also breaking the law by refusing to respect them. For example, it is unlawful to
inform buyers that a 20% off sale is available for R400 when the product has never been sold for
R480, even though the store claims it is prior to the discount. Understanding advertising laws can
help businesses avoid potential fines, penalties, and reputational harm from improper marketing
actions (Chron, 2021). https://smallbusiness.chron.com/company-advertising-price-wrong-
responsible-mistake-73117.html
