“It is imperative that event organisers understand the many requirements of the CPA,” says Advocate Louis Nel, a lawyer who specialises in the travel, tourism, events and hospitality industries. You may also know him simply as “Louis the Lawyer”.
The CPA, or Consumer Protection Act (No 68 of 2008), was signed into law on 24 April 2009 and came into effect on 31 March 2011. “So far, the impact of the CPA on liability for the events industry seems to have been negligible, but the potential impact of it is quite scary!” explains Louis. He therefore encourages event organisers to err on the side of caution, to ensure their business is not left exposed to what could be substantial damages.
To do this, he recommends the following – and adds, “These are not in order of importance, but are all imperative.”
1. Have detailed Terms & Conditions, for customers, suppliers and venues.
Remember, any documentation like this must be in plain language, and any risks must be brought to the attention of the customer. Furthermore, Louis adds, “Any ‘apparent misapprehension’ must be clarified. This means when you are discussing the event, you must observe, for example, the body language of the customer to ensure they understand what you are saying and are comfortable with it.”
2. Have separate indemnities in addition to the Terms & Conditions.
3. Have a written and signed contracts with all parties.
If you are dealing with groups, check the mandate of the representative, and if there is any doubt get each member of the party to sign Terms & Conditions and indemnities.
The CPA allows consumers to hold an event organiser liable for a defective product or service that is provided by a subcontractor – such as an AV supplier or furniture hire. This is because the event organiser is deemed responsible for the third party supplier in the process of contracting them, and in the case of products (e.g. a chair that collapses) is deemed to be the producer.
4. Vet all third party contracts before signing.
5. Have detailed site inspections and take photos, both of before and after the event.
6. Remember that briefings are crucial, both with the customer, suppliers and venue.
7. Keep written notes/minutes of all of the aforesaid.
8. Invest in comprehensive insurance coverage.
Louis adds that the CPA is just one set of legislation that organisers need to be aware of. Others that can also have an impact on your risk management planning include SASREA (Safety at Sports and Recreational Events Act of 2009), PoPI (Protection of Personal Information Act of 2013) and the Companies Act (2008).
Photo by frank mckenna on Unsplash.
