Legal Consultation

Offering online payment options is essential for many businesses, but it comes with legal responsibilities. As businesses make it easier for customers to pay online, they must be aware of certain legal requirements to ensure compliance, security, and consumer protection. Here are the key legal considerations you should address when offering online payments.

The CPA requires businesses to ensure that online payment processes are clear, transparent, and fair. This includes providing accurate pricing, clear terms and conditions, and ensuring that payments are securely processed.

Practical Tip: Before offering online payments, ensure your website clearly displays all fees, terms, and refund policies, and confirm that customers know what they are paying for.

The Protection of Personal Information Act (POPIA) requires businesses to protect consumer data, including payment details, when handling personal and financial information. You must ensure that payment information is securely processed and stored.

Practical Tip: Use encryption for online payment systems to protect sensitive customer data and ensure your payment provider is compliant with POPIA. Avoid storing credit card details unless absolutely necessary, and if you do, ensure they are stored securely.

Online payment systems must be secure to prevent fraud and data breaches. As a business owner, you are responsible for ensuring the payment platform you use meets industry security standards, such as PCI DSS (Payment Card Industry Data Security Standard).

Practical Tip: Work with reputable payment service providers that offer secure transaction processes, like SSL certificates and two-factor authentication (2FA).

Clear and fair refund policies are critical to building trust with customers. According to the CPA, customers have the right to a refund under certain conditions, such as faulty goods or services not delivered as promised.

Practical Tip: Include a clear refund policy on your website and provide instructions on how customers can request refunds or chargebacks if necessary.

By addressing these legal considerations, you will not only comply with South African laws but also ensure that your online payment process is secure, transparent, and trusted by your customers.

Many businesses are turning to digital platforms to manage employee schedules, performance, and overall productivity. These tools can streamline operations, improve efficiency, and simplify the tracking of employee performance. However, using these platforms comes with legal responsibilities. It is essential for business owners to understand the legal implications of using digital tools for managing employees to avoid potential legal issues and ensure compliance with labour laws.

Here are the key legal considerations to keep in mind when using digital platforms for managing employee schedules and performance:

The Basic Conditions of Employment Act (BCEA) sets out the minimum requirements for working hours, rest periods, overtime, and more. When using a digital platform to manage employee schedules, ensure that it aligns with these legal requirements.

Practical Tip: Set up the platform to automatically alert you if an employee’s scheduled hours exceed the legal limits, such as exceeding the maximum 45-hour work week or the 9-hour daily limit for ordinary hours. Additionally, ensure that you have proper records of rest periods and overtime.

The Protection of Personal Information Act (POPIA) applies when processing personal data, including data collected through digital platforms. Employee data, such as contact details, performance records, and work schedules, is considered personal information. You must ensure that this information is securely stored and only accessible to authorised personnel.

Practical Tip: Choose a digital platform that complies with POPIA and allows for secure storage of employee data. Implement strict access controls and ensure that employees’ personal information is not shared or exposed without their consent. Additionally, ensure that your platform allows you to delete or anonymise employee data when it is no longer necessary.

The Employment Equity Act mandates that all employees are treated fairly and without discrimination. When using digital platforms to track employee performance, it is crucial to ensure that performance metrics are applied fairly and consistently across all employees, without bias or discrimination based on race, gender, age, disability, or other prohibited grounds.

Practical Tip: Regularly review the data used to assess employee performance to ensure it is objective and relevant to the tasks at hand. For example, use measurable key performance indicators (KPIs) that are linked to specific job roles and avoid using subjective or biased data. Ensure that performance management through the platform is aligned with your company’s policies on equality and diversity.

When monitoring employee performance through digital platforms, it is important to obtain employee consent, as this can raise issues around privacy and autonomy. While employers are within their rights to monitor performance and track working hours, employees must be informed about how their data is being used and must consent to this monitoring.

Practical Tip: Make sure your employees are aware of the platform’s functionalities and how their data will be used. Consider implementing a clear and transparent employee consent form that explains the purpose of performance tracking and scheduling, how data will be collected, and who will have access to it. It is also important to provide employees with the option to ask questions and clarify any concerns they may have.

When using digital platforms to manage schedules and performance, it is essential that your employment contracts reflect the use of such tools. Make sure your contracts outline the types of data that may be collected and how it will be used. Also, ensure that any digital records of performance and schedules are legally valid in case they are needed for future disputes or legal proceedings.

Practical Tip: Update employment contracts to include clauses related to digital performance tracking, scheduling, and data collection. Additionally, keep digital records of employee schedules, performance reviews, and feedback in a secure and accessible manner, as these may be needed for legal or compliance purposes.

Using digital platforms to manage employee schedules and performance offers significant advantages for SMEs in South Africa, but it comes with legal responsibilities. By understanding and addressing the legal considerations outlined above, you can ensure that your business complies with labour laws, protects employee privacy, and maintains fair treatment of all employees. Proper implementation of these practices will not only safeguard your business from potential legal risks but also build a culture of transparency and trust with your employees, helping your business thrive.

For most businesses, online advertising is a cost-effective way to reach customers. However, misleading or unethical advertisements can harm your reputation and even lead to penalties under the Advertising Regulatory Board’s (ARB) Code of Advertising Practice. Here is how to ensure your online advertising complies with the standards.

The Code of Advertising Practice requires that all advertising claims be truthful and substantiated. Avoid exaggerating product benefits or making promises you cannot deliver.

Practical Tip: If you claim your product is “the best in the market,” back it up with evidence such as awards or customer reviews. If evidence is not available, revise the wording to be accurate and fair.

Ensure that prices in your ads are clear and accurate. Hidden costs or conditions that are not disclosed upfront can lead to consumer complaints.

Practical Tip: If a price is part of a promotion, state the terms clearly, such as the end date or stock limitations. Example: “R299 – valid until 31 January, while stocks last.”

The Code prohibits disparaging competitors in your ads. Focus on promoting your products without undermining others.

Practical Tip: Avoid phrases like “better than [competitor’s name]” unless supported by verifiable research.

Ads targeting children must be age-appropriate and avoid exploiting their naivety.

Practical Tip: Review content aimed at younger audiences to ensure it does not encourage unsafe behaviour or unrealistic expectations.

When ads include disclaimers, they must be legible and not hidden in fine print.

Practical Tip: Include disclaimers in a font size and colour that is easy to read, even on mobile devices.

Adhering to these guidelines not only keeps you compliant but also builds trust with your audience, ensuring sustainable growth for your business.

For Small, Medium, and Micro Enterprises (SMMEs), protecting customer data is not just a good business practice, it is a legal obligation under the Protection of Personal Information Act (POPIA). Cyber-attacks are an increasing threat, and failing to safeguard personal information can result in fines, reputational damage, or loss of customer trust. Here is what SMMEs need to know about their obligations and practical steps to comply with POPIA.

POPIA requires businesses to process personal information lawfully, securely, and transparently. Personal information includes names, contact details, ID numbers, financial information, and more. Under POPIA, you are responsible for protecting this data against unauthorised access, loss, or damage.

SMMEs are often seen as easy targets for cybercriminals due to limited resources for cybersecurity. Common attacks include phishing, ransomware, and unauthorised access. These breaches can expose sensitive customer data, leading to POPIA violations.

Example: If a cyber-attack exposes your customers’ credit card details, you could face legal and financial consequences under POPIA.

Here are actionable steps SMMEs can take:

Identify what personal information you collect, where it is stored, and how it is processed. This  will help you better understand and manage associated risks.

Practical Tip: Create a data inventory listing all the types of personal information your business holds and who has access to it.

Limit access to sensitive data exclusively to individuals with legitimate authorisation. Use passwords, two-factor authentication (2FA), and role-based access controls.

Practical Tip: Regularly update passwords and enforce 2FA for all accounts handling customer data.

Encrypt sensitive data both in transit (e.g. emails) and at rest (e.g. stored files). Employ encryption techniques to render data unintelligible to unauthorised viewers.

Practical Tip: Use tools like BitLocker (for Windows) or VeraCrypt for encrypting files and storage devices.

Recognize that human error is a significant contributor to data security failures. Educate your staff on recognising phishing emails, using secure passwords, and handling data responsibly.

Practical Tip: Conduct regular training sessions and share easy-to-follow guides on identifying cyber threats.

Acknowledge that outdated software creates exploitable weaknesses for cybercriminals. Ensure your operating systems, software, and plugins are updated with the latest security patches.

Practical Tip: Enable automatic updates for all software to avoid missing critical patches.

If you collect customer data through your website (e.g. via contact forms or online stores), ensure it is secure. Use HTTPS, install SSL certificates, and regularly test your website for vulnerabilities.

Practical Tip: Check your website’s SSL status using free tools like SSL Labs.

Despite your best efforts, breaches may still happen. POPIA requires businesses to notify the Information Regulator and affected individuals as soon as possible.

Steps to Take:

      1.  Contain the breach immediately to prevent further damage.

      2.  Assess the extent of the breach and identify the affected data.

      3.  Notify the Information Regulator and customers with details of the breach and steps you’re taking to address it.

Practical Tip: Have an incident response plan in place so your team knows what to do in the event of a breach.

Compliance is not a one-time effort.  It requires continuous improvement. Regularly review your data protection policies, update security measures, and stay informed about new cyber threats.

Under POPIA, you must appoint an Information Officer responsible for ensuring compliance. This person should oversee data protection policies and liaise with the Information Regulator.

Practical Tip: If you lack in-house expertise, consider outsourcing this role to a consultant or legal professional.

Protecting customer data is not only a legal requirement under POPIA but also a way to build trust with your clients. By taking proactive steps to secure personal information and prevent cyber-attacks, SMMEs can safeguard their businesses while remaining compliant. Start today by assessing your data practices, implementing strong security measures, and educating your team on best practices. This investment in data protection will pay off in the long run by minimising risks and enhancing your reputation.

1.  Use Online Accounting Software to Ensure Accurate Record-Keeping

Cloud-based platforms like Xero, QuickBooks, or Sage help SMMEs maintain accurate financial records, a key requirement for tax compliance and audits. These tools generate invoices, track payments, and manage expenses, ensuring financial data is up to date and aligned with South African Revenue Service (SARS) requirements.

Practical Tip:  Choose software that integrates with SARS eFiling to streamline VAT and tax return submissions.

2.  Automate Invoice Generation and Payment Reminders to Prevent Late Payments

Delays in invoicing or payment tracking can result in cash flow problems and non-compliance with contractual obligations. Digital invoicing tools help businesses issue compliant invoices, track payments, and send automated reminders for overdue accounts.

Practical Tip:  Ensure invoices include all legally required details, such as VAT registration numbers (if applicable) and correct payment terms.

3.  Digitally Track Expenses for Audit Readiness

Maintaining proper expense records is essential for tax deductions and SARS audits. Apps like Expensify or Wave allow businesses to scan and store receipts, ensuring that all expenses are correctly documented and categorized.
Practical Tip:  Keep digital records of all business expenses for at lease five years, as required by South African tax laws.

4.  Simplify SARS Tax Compliance with Digital Tools

Missing tax deadlines or filing incorrect returns can lead to penalties. Software like TaxTim or accounting platforms with SARS integration help businesses calculate VAT, submit returns, and meet compliance deadlines.

Practical Tip:  Set calendar reminders for VAT submissions, provisional tax deadlines, and annual tax returns to avoid late fees.

5.  Monitor Financial Health to Prevent Regulatory Issues

A real-time financial dashboard helps businesses track their income, expenses, and profitability, ensuring they meet financial obligations and avoid insolvency risks. Digital tools provide insights that aid in budget planning and compliance reporting.

Practical Tip:  Regularly review financial reports to ensure compliance with the Companies Act and tax laws.

By leveraging digital solutions, SMMEs can enhance financial efficiency while ensuring full compliance with SARS regulations and corporate governance requirements. Start small and integrate more tools as your business grows.

1. Contactless payments: Contactless payments allow customers to make payments by simply tapping their cards or devices on a reader. This type of payment is often seen to be more convenient and secure than traditional credit or debit card payments.

2. Mobile payments: The use of smartphones to make purchases is becoming increasingly popular. People make use of mobile devices to make payments on platforms such as SnapScan, PayPal, Google Wallet, and Apple Wallet. This also allows businesses to buy and sell their goods and services to customers all over the world, without having to maintain a physical presence.

3. Cryptocurrency: Cryptocurrency is a digital or virtual currency that uses cryptography for security, making it difficult to counterfeit it. For example, bitcoin is a cryptocurrency that can be used to make purchases online. You can use Bitcoin to buy goods and services from online retailers.

4. Buy now, pay later (BNPL): BNPL is a type of financing that allows customers to make purchases immediately and to pay later. BNPL is becoming increasingly popular, as it provides customers with a way to make larger purchases without having to pay for them all at once.

In addition to these, some examples of additional trends include:

Smart contracts: These are self-executing contracts that businesses can store on a blockchain. Smart contracts can be used to automate a variety of transactions, such as the sale of goods and services, money transfers, and purchasing of goods and services.

E-commerce: E-commerce refers to the buying and selling of goods or services over the internet. E-commerce can help retailers to reach new customers, improve customer service, and increase sales.

E-goods: E-goods are digital goods that can be purchased and downloaded online. For example, you can buy music, movies, and e-books from online retailers.

Enterprise resource planning (ERP): ERP is software that helps businesses to consolidate various departments within the business. Integrating different departments and resources helps businesses to be productive and efficient. This software is helpful for large corporations.

Big Data: Businesses also use big data to collect and analyse large amounts of data to obtain insights about their businesses. For example, big data allows businesses to gain insights into their competitors, their customers, and the market. Obtaining this information allows companies to acquire a competitive edge, improve goods and services delivery and increase their target market.

Cloud computing: This is a technology that allows businesses to not only store data, but also access it in the future over the internet. Cloud computing has vast benefits such as reducing costs, improving business efficiency, and increasing flexibility.

Digital economy examples: the digital economy ranges from e-commerce transactions to social media, and the Internet. It covers a wide range of activities, products, and services. For example, e-commerce or e-marketplace platforms such as Gumtree and Amazon

It also covers digital and mobile payments such as SnapScan, PayPal, Google Wallet, and Apple Wallet. These platforms not only offer low transaction costs but also boost sales and clientele.

Social media platforms and online advertising use have also been prevalent in businesses. These platforms include Facebook, Twitter, LinkedIn, Google Ads, and Instagram. These platforms play a vital role in increasing a business’s digital presence.

Digitalisation has also made it possible for businesses to introduce a work-from-home option or a hybrid for employees permitting them to work remotely, on-site or both.

Videoconferencing is also becoming increasingly popular. Companies have adopted videoconferencing platforms such as Zoom, Google Meets, Skype, and Microsoft Teams. Businesses are now able to conduct day-to-day activities through video-conferencing platforms such as meetings. Furthermore, these platforms have also made it possible for businesses to outsource employees at a lower cost.

These are just a few examples of the many activities that make up the digital economy. As technology continues to advance, the digital economy will only continue to grow and evolve.