WENDY KNOWLER | Where there’s soap there’s ire

The Consumer Protection Act (CPA) is strong on full disclosure and transparency, and communicating with consumers in plain, understandable language.

“A producer, importer, distributor, retailer must not market any goods or services in a manner that is reasonably likely to imply a false or misleading representation or in a manner that is misleading, fraudulent or deceptive in any way, including: the nature, properties, advantages or uses of the goods or services; the manner or conditions on which those goods or services may be supplied; or the price at which the goods may be supplied.”

I think it’s fair to say the telemarketing industry has, by and large, not warmly embraced the letter or spirit of those legal requirements. Their scripts are a masterclass in disguising, or at best underplaying, the bits which are going to whack their targets’ bank balances should they agree to the deal on offer, as regular readers of this column will know.

A Gauteng-based company called Unlimited Essentials, which says it manufactures a range of detergents, sells them by making telemarketing calls to small businesses. But its punters don’t say: “Would you like to buy 25 litres of our pine gel at R2,846.25, including VAT?”

Clearly they wouldn’t have too many takers if they did. How many would choose to spend that much on an unknown product, being sold by an unknown company that only provides a PO box address?

Dentist Amanda Marais’s Somerset West practice was targeted by Unlimited Essentials in June.

Her receptionist, who took the call, was adamant she was offered a free sample of pine gel on being questioned about the cleaning product the practice used most, as well as some form of gift card with an unspecified amount.

So she supplied the delivery address.

What was delivered was a 25-litre tub of pine gel.

“That’s certainly not what we were expecting,” Marais said. “But as there was no invoice attached, we assumed it was a free sample, albeit a very big one.

“I tried redeem value on the card, but it did not work at any of the shops.”

The invoice was delivered a few weeks later — R2,846. Unsurprisingly, they tried to return the product, but hit two snags — no return address was supplied and the company had a “no returns” policy.

Incidentally, when goods are sold by direct marketing, as in this case, the customer has the benefit of a five business days cooling-off period in which to cancel at no penalty.

In terms of the CPA, you are only legally obliged to pay a supplier if they can prove that there was a meeting of the minds on the deal — in other words, that you ordered a specific amount of product at a disclosed price

But with the payment demand only being delivered a lot longer than a week after the product, recipients lose out on that opportunity. There are scores of reviews about this company on HelloPeter claiming near-identical experiences.

And when payment isn’t made, interest is added to the amount owing and the demands intensify.

In terms of the CPA, you are only legally obliged to pay a supplier if they can prove there was a meeting of the minds on the deal — in other words, that you ordered a specific amount of product at a disclosed price.

So the company is obliged to produce a call recording in which they can clearly be heard making that offer — 25 litres of pine gel at R2,800-odd — and the would-be customer can be heard agreeing to it.

Asked to comment, Unlimited Essentials told me: “Our telemarketing agents make contact with businesses that are listed in the Trudon Yellow Pages directory.

“Agents only speak to the person authorised to purchase said products.

“A gift voucher is offered as a token of gratitude to the company for having purchased the product for the first time.

“A verification manager contacts the customer thereafter to reconfirm that there was actually an order placed and also that all the information shared and received is correct and true.

“If so, the sale is then sent through to the quality assurance department.

“Quality assurance ensures that both telephone calls — the sales call and the confirmation of the order calls — are 100% correct before the sale is forwarded to our dispatch department for courier of the goods.

“All of our telephone calls are recorded and are made available to customers upon request.”

Unlimited Essentials insisted there was ample proof of Marais’s receptionist agreeing to the order, but Marais’s receptionist later agreed to pay a cancellation handling fee for return of stock, “which is what we did agree on as a resolution to the matter”.

I was sent the recording of the confirmation call but not the initial sales call, the company saying its sales script is “the intellectual property of the directors”.

That one they played for me over the phone.

In the confirmation call, the caller can be heard talking about the order, but there is nothing about a free sample. He described the order as 25 litres at R100 a litre, which is an extremely misleading way to state a price. There is also a mention of repeat orders.

As for the all-important sales call, I heard the caller ask the receptionist if she was authorised to order cleaning chemicals, and after some hesitation she said yes.

A “complimentary Mastercare voucher, so you can spoil themselves” is mentioned but no rand value.

There followed a sales pitch for the company’s “upgraded” pine gel, not yet released, but being offered in advance to certain companies.

The words 25 litres are mentioned and something about dilution rates, quickly followed by “we will send you a complimentary voucher”, so it’s easy to understand how someone who is not in control of the conversation could deduce that what they’d be sent was complimentary, though I never heard the words “free sample”.

Business owners, warn your staff not to engage with people who make unsolicited sales calls. If they use the words free, complimentary, reward or prize, that should be their cue to end the call

Later the caller mentions an “introduction pack of 25 litres at R99 a litre.

“Invoice only due after 30 days.”

The company argues there was full disclosure, but that price declaration is not transparent; far from it. And all that talk about a complimentary voucher certainly creates confusion.

Why not say, “Would you like to buy 25 litres of pine gel for R2,500 plus VAT?”

I’m guessing we all know the answer.

I’ve since heard from another Cape Town company director whose young employee was said to have agreed to the 25-litre offer, but swears he only said yes to a “complimentary sample and a voucher”.

The CPA protects consumers — and businesses with an annual turnover of less than R2m — from having to pay for unsolicited goods. In short, if there is no proof that you agreed to order a particular product at a particular price, the goods are regarded as unsolicited and you are not legally required to pay for them. If the company refuses to collect, you’re entitled to keep them without payment.

But there’s more.

The Foodstuffs, Cosmetics and Disinfectants Act compels manufacturers, packers or distributors of disinfectants to include on the label their name and street address, the manufacture date, expiry date and a list of ingredients.

The 25-litre tub of pine gel which was delivered to Marais’s practice has no list of ingredients and no street address, so it’s noncompliant in a big way.

I put that to the company but got no response.

Business owners, warn your staff not to engage with people who make unsolicited sales calls. If they use the words free, complimentary, reward or prize, that should be their cue to end the call.

I urge those who feel the goods they are being asked to pay for fit the description of “unsolicited” to lodge complaints with the consumer goods and services ombudsman.

• GET IN TOUCH: You can contact Wendy Knowler for advice with your consumer issues via e-mail: consumer@knowler.co.za or on Twitter: @wendyknowler