The Consumer Protection Act (CPA) applies to ISPs, and if an ISP’s contracts or its processes do not comply with the CPA’s rather onerous provisions, this can have painful consequences.
Annoyingly, the CPA will apply to an ISP’s smaller clients, but most of it will not apply to corporate clients. If an ISP wishes to have a single contract for all clients it must ensure that it does not defeat its own interests with its larger clients in complying with the CPA for its smaller clients.
The provisions that apply to ISPs are too numerous to list here, but some choice examples are:
- Agreements must be drafted in plain language.
- Agreements with natural persons cannot exceed two years in length and cannot automatically renew.
- Natural persons can cancel agreements on 20 business days’ notice.
- Certain contractual terms are deemed to be unfair and will not be enforced.
- There are restrictions on the exemptions and indemnities that an ISP can have in place.
- Clients have a right to good service.
Ellipsis has advised several ISPs on compliance with the CPA and can assist in making both standard terms and an ISP’s business processes compliant.
Fees are subject to quotation and will depend on complexity.
For further information, please contact Anton Kotze.