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CONSUMER PROTECTION ACT AND YOUR BUSINESS
With effect from October 2010 you will only be allowed to operate a business under your full names as
contained in your identity document or the name registered for your business with CIPRO. If, for
example, you are operating via a shelf close corporation or private company and “trading as” in any
other name besides that of the registered name of your entity, you will be operating illegally and could
face heavy penalties.
For example, your legal entity is Moonlight Trading 123 CC trading as Joe’s Bakery will not be allowed.
You will have to style your business as plain Moonlight Trading 123, unless you have registered Joe’s
Bakery as a defensive or registered name.
If someone else has a registered name and your trading name is the same or similar to that name, this
will also be taboo as will be any name the same or similar to a registered trademark. If you fall foul of
this Act you may be ordered by the National Consumer Commissioner to cease your trading activities.
It would be in your client’s best interest to make the necessary arrangements timorously to reserve their
trading name as a defensive name or to change the registered name of their legal entity to reflect their
“trading as” name. A business can register as many defensive names as they wish i.e. provided CIPRO
approves them. The registration lasts for a year and it will have to be renewed annually.
The SA Business Development Academy will be hosting a workshop in February 2010 on a national basis
to inform and equip businesses on the impact of the new legislation.
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