Under the common law, disclosure of information is required in certain specified circumstances.  For example, a seller must disclose any latent defects that the seller is aware of, and an applicant for insurance must disclose all information relevant to the risk for which cover is sought.

The Consumer Protection Act 2008 (“the Act”) now provides for a statutory duty of disclosure in consumer transactions.

The Act expands on the common law obligation to disclose latent defects by requiring suppliers to disclose material facts and to correct misapprehensions on the part of the consumer, if failure to do so would amount to a deception.

Prices must be displayed whenever goods are displayed for sale (unless the supplier has provided an estimate in terms of the Act or the consumer has waived such an estimate, section 43 of the Electronic Communications and Transactions Act applies, or the goods are displayed primarily as an advertisement or in a place not accessible to the public).  The Act deals with the manner in which prices are to be displayed.

Suppliers are prohibited from charging more than the displayed price or, where more than one price is legibly displayed, more than the lower of the two prices.  In the event of an inadvertent and obvious error, the supplier will not be bound by the lower price after the error has been corrected and the supplier has taken reasonable steps to notify consumers to whom the error was displayed of the correct price.  In addition, the supplier will not be bound by the displayed price if it was tampered with by an unauthorised person.

The Act regulates trade descriptions and prescribes requirements for trade descriptions.  The Minister is authorised to promulgate regulations regarding trade descriptions, including the prescription of categories of goods for which compulsory trade descriptions are required.  In particular, disclosure of any genetically modified ingredients in prescribed goods must be made.  This obligation is not limited to the producer or importer, but extends to the supplier and packager.

Compulsory disclosure is required in respect of reconditioned goods that bear the trade mark of the original producer or supplier and trade mark bearing goods imported without the approval of the trade mark owner (grey goods).

Suppliers must provide written records of transactions to consumers.  The Act prescribes the contents of the written record.

Provision is made in the Act for disclosure by intermediaries of certain prescribed information, extensive disclosures by franchisors, disclosure of the country of origin and any encumbrances to which goods are subject, and disclosures in respect of catalogue marketing, promotional offers and promotional competitions.  The attention of the consumer must be specifically drawn to certain contractual terms.

Disclosures must be made in plain and understandable language.