SA cannot celebrate Consumer Rights Day amidst so much paternalism, says Free Market Foundation

FMF Press Release (Liberty Freedom 2)

13 March 2026

Blaai af vir Afrikaanse weergawe.

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.

Ends.

***

SA kan nie Verbruikersregtedag vier te midde van soveel paternalisme nie, meen Vryemarkstigting

13 Maart 2026

Scroll up for English version.

Ter erkenning van Wêreld Verbruikersregtedag hierdie komende Sondag, 15 Maart, herhaal die Vryemarkstigting (FMF) sy oproep aan alle staatssfere om hul ingewortelde paternalistiese neiging in toom te hou en respek vir verbruikerskeuse te herstel.

“15 Maart is bedoel om ’n dag van viering te wees van die vryheid van die verbruiker om self te besluit,” sê FMF Beleidshoof, Martin van Staden. “In plaas daarvan is dit niks meer as ’n swak retoriese knik nie.”

Die doeltreffendste beskerming vir Suid-Afrikaanse verbruikers kom uit oop markte, sterk eiendomsregte, en vryheid van keuse. Wanneer besighede vir kliënte moet meeding, word hulle aangespoor om gehalte te verbeter, pryse te verlaag, en verbruikers billik te behandel.

Oormatige regulering en belasting het die teenoorgestelde effek: dit verhoog toetredingsversperrings, dwing verbruikers om produkte onwettig aan te koop, verminder mededinging, en beperk beskikbare opsies in die mark.

Suid-Afrikaanse verbruikers word aan ’n genadelose en veelsydige aanslag blootgestel.

Op 25 Februarie, tydens sy 2026 Begrotingsrede, het minister Enoch Godongwana die verhoging van verskeie aksynsbelastings aangekondig. Hierdie belastings is bedoel om sekere gedrag by verbruikers te induseer eerder as om die legitieme werk van die regering te finansier.

“Belastings vir sosiale ingenieurswese is nie net neerbuigend teenoor volwasse verbruikers nie, maar ook onverenigbaar met die sosiale kontrak,” sê Van Staden. “Die regering is nie ons ouer nie, maar veronderstel om ons dienaar te wees.”

Die Wetsontwerp op die Beheer van Tabakprodukte en Elektroniese Afleweringstelsels, nou in ’n gevorderde stadium van aanvaarding, is nog ’n beduidende bedreiging vir verbruikerskeuse. Indien dit wet word, sal dit die wettige tabakbedryf verder verswak en nog meer verbruikers in die arms van die onwettige handel dryf, wat reeds meer as twee-derdes van die sektor beheer.

Die wetsontwerp brei die reikwydte van Suid-Afrika se streng tabakregulering uit na vaping ook, en kan moontlik ’n deur na effektiewe skadevermindering vir rook sluit.

“Die belaglikste bepalings in die wetsontwerp sou sien dat rokers of vapers gevangenisstraf opgelê word indien hulle daaraan skuldig is om hierdie produkte in hul eie huise of voertuie onder sekere omstandighede te gebruik,” sê Van Staden.

Die aanslag op verbruikersvryheid strek tot alkohol, waar ’n nuwe Wysigingswetsontwerp op Drankware ’n totale verbod op advertensies, promosie, en produkplasing van drank oor alle media voorstel. Dit, saam met President Ramaphosa se onlangse voorstelle vir minimum eenheidprysbepaling, selfs hoër aksynsbelastings, beperkings op die digtheid van verkooppunte, gereguleerde handelsure, en verbod op groot houers, toon dat die huidige administrasie volwasse verbruikers nie as in staat beskou om hul eie keuses te maak nie.

Net so bedreig die Nasionale Tesourie se voorstel vir ’n 20% nasionale belasting op aanlyn dobbeloperateurs om gelisensieerde verskaffers oneweredig te belas terwyl dit skadelike dobbelary nie sal indam nie. Soos FMF Beleidbeampte Ayanda Zulu beklemtoon het, loop hierdie belasting die risiko om dobbelaars na ongereguleerde buitelandse platforms te dryf – wat reeds dominant in die mark is – ondermyn provinsiale gesag, voed onwettige aktiwiteite, en verplaas finansiële verantwoordelikheid.

Die FMF staan gekant teen hierdie inmengings in verbruikersoutonomie, en sal voortgaan om Liberty First te stel.

“Terwyl Suid-Afrika steeds worstel met stygende lewenskoste en beperkte ekonomiese groei, bly beleide wat mededinging en ekonomiese vryheid bevorder noodsaaklik vir die beskerming van verbruikers,” sluit Van Staden af.

Einde.

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