The Consumer Protection Act, which became effective on April 1 this year, stipulates that such pre-paid devices may not expire within three years.
In the past, unclaimed prepaid vouchers were a fantastic source of unearned income for many a retailer and beauty spa, which slapped three-month or six-month expiry dates on them and refused to honour them when presented for redemption after those relatively short periods had expired.
Forcing retailers to give consumers a far longer period in which to claim the goods or services for which they – or a gift giver – had paid in advance, was intended by the legislators to put an end to this consumer injustice.
As reported in this column recently, the cellphone industry is generally resisting complying with this provision of the Act, as the players have grown accustomed to forcing subscribers to “use or lose” pre-paid services in a matter of months. But they’re not the only ones.
A number of readers have written to Consumer Watch, questioning whether Gautrain’s recently introduced pre-paid passes comply with the Act.
Travellers have three travel options – pay-as-you-go, and two discounted pre-paid passes for regular users: a seven-day pass which provides 10 single trips between two pre-selected stations, and a 35-day pass, which allows for 44 single trips.
They expire within seven and 35 days respectively, which is not sitting well with many users.
“The tickets should be for a set number of trips, and should not expire after such a short time,” said Ross Meldrum. “Do they actually comply with the CPA?”
Michiel Snyders has worked out that “there isn’t much leeway if you miss a couple of days” – in other words, the chances of someone forfeiting pre-paid trips when buying a 35-day pass, in particular, are high.
“One of my co-workers has classes on Mondays, so he only wants to use the train Tuesday to Friday. This means that over five weeks – 35 days – he’ll be able to use the train on 20 working days – 40 trips – and automatically forfeit four trips with each monthly pass he buys.
“So, are these stipulations for the fares really in line with the CPA?”
I sought answers from Errol Braithwaite, an executive with Bombela Concession Company.
He began by saying it was never the company’s intention to “prejudice or disadvantage consumers in any way”.
“Earlier this year we procured an independent legal review of our offering, specifically in the light of the CPA and were advised that we were compliant.”
Braithwaite said the Gautrain’s fare structures were developed in conjunction with its public-sector partner, the Gauteng provincial government. “Bombela does not have the authority to unilaterally set fare levels or fare structures.”
The seven-day pass effectively allowed for two non-commuting days in each cycle, assuming an average of five working days per week and two trips per working day, he said.
“If, in a particular week, the user will not use all of these trips – as in Mr Snyders example – then he should not purchase a seven-day pass.”
The 35-day pass was aimed at the regular monthly commuter and rewarded them with an effective discount of about 20 percent compared with the pay-as-you-go user, he said.
It allows for 13 non-commuting days in each cycle.
“Whereas before when we only offered the pay-as-you-go option, the period products now on sale actually enhance customer value and do not diminish it,” Braithwaite said. “Judicious use of combinations of these products should always result in a net benefit to the customer.”
However, he undertook to “revisit Mr Snyder’s point about the CPA regulations with our legal advisers”.
That was last week.
But on sourcing comment from National Consumer Commissioner Mamodupi Mohlala on this issue, I discovered that she had on August 2 sent a letter to the Gautrain Management Agency, an agency of the provincial government, about the issue.
In that letter, the commissioner states that the fact that the passes in question expire in seven and 35 days respectively, and that “unused trips are not refundable” is a contravention of Section 63 of the Act.
“In our view, the credits relating to both passes remain the property of commuters.
“Further, that the credits will expire once the commuter has redeemed them all or after the expiry of three years from the date of issue.”
Accordingly, the agency was instructed to align its fare policies with the Act within 30 days – that is, by September 1.
Braithwaite said he wasn’t in a position to comment on that letter.
To be continued… - The Star