Lewis shares rally as tribunal rules in its favour on club fees
Lewis said on Monday that the National Consumer Tribunal had ruled in its favour in the matter involving the furniture retailer and National Credit Regulator regarding club fees and extended warranties.
The ruling comes less than a week after the regulator accused Mr Price of falling foul of the sections of the National Credit Act. The clothing retailer has dismissed the allegations.
The latest announcement helped lift Lewis's share price by more than 5% to R35.42 in the afternoon. Mr Price held its gains on the JSE in line with other retailers.
The tribunal found that the National Credit Act does not prevent credit providers from offering the services of a club to consumers, provided these services are not part of the "cost of credit", according to Lewis.
It was found that the club fees charged by Lewis did not form part of the cost of credit of any credit agreement between Lewis and its customers.
In May, the tribunal ordered the owner of clothing chains Edgars and Jet, Edcon, to refund club fees included in its credit agreements.
Source: BDpro