Advertisement
| In recognition of World Consumer Rights Day this coming Sunday, 15 March, the Free Market Foundation (FMF) is reiterating its call on all spheres of government to rein in their entrenched paternalistic streak and restore respect for consumer choice. “15 March is meant to be a day of celebration of the freedom of the consumer to decide for themselves,” says FMF Head of Policy, Martin van Staden. “Instead, it is nothing but a weak rhetorical nod.” The most effective protection for South African consumers comes from open markets, strong property rights, and the freedom to choose. When businesses must compete for customers, they are incentivised to improve quality, lower prices, and treat consumers fairly. Excessive regulation and taxation have the opposite effect, raising barriers to entry, forcing consumers to purchase products unlawfully, reducing competition, and limiting available options in the market. South African consumers are under relentless and multipronged assault. On 25 February, during his 2026 Budget Speech, finance minister Enoch Godongwana announced the raising of various excise taxes. These taxes are meant to induce certain behaviour among consumers rather than fund the legitimate work of government. “Taxes for social engineering are not only condescending towards adult consumers, but also inconsistent with the social contract,” says Van Staden. “The government is not our parent, but meant to be our servant.” The Tobacco Products and Electronic Delivery Systems Control Bill, now at an advanced stage of adoption, is another significant threat to consumer choice. If enacted, it stands to further weaken the legal tobacco industry and push more consumers into the arms of the illicit trade which already controls more than two-thirds of the sector. The bill extends the reach of South Africa’s burdensome tobacco regulation to vaping as well, potentially closing a door to effective smoking harm reduction. “The most ridiculous provisions in the bill would see smokers or vapers imprisoned if they are found guilty of consuming these products in their own homes or vehicles under certain circumstances,” says Van Staden. The assault on consumer freedom extends to alcohol, where a new Liquor Amendment Bill proposes a total ban on advertising, promotion, and product placement of liquor across all media. This, coupled with President Ramaphosa’s recent proposals for minimum unit pricing, even higher excise duties, limits on outlet density, regulated trading hours, and bans on large containers, reveals that the present administration does not regard adult consumers as capable of making their own choices. Similarly, National Treasury’s proposal for a 20% national tax on online gambling operators threatens to disproportionately burden licensed providers while failing to curb harmful gambling. As FMF Policy Officer, Ayanda Zulu has highlighted, this tax risks pushing gamblers towards unregulated offshore platforms – already dominant in the market – undermining provincial authority, fuelling illegal activity, and displacing financial responsibility. The FMF stands opposed to these interferences in consumer autonomy, and will continue to put Liberty First. “As South Africa continues to grapple with rising costs of living and limited economic growth, policies that promote competition and economic freedom remain essential for protecting consumers,” concludes Van Staden. |
https://www.digital.zenithbank.com/ZEQ/ZEQ-jan-2026/index.html#p=1
