A case being pursued by Stellenbosch University’s Law Clinic recently got certified to continue with a class action against a South African company.
The Law Clinic’s case against the Lifestyle Direct Group (LDG), which was certified on 6 August 2021, is one of only ten class actions in South Africa to receive certification to continue. The first ever class action in South Africa took place in 2001.
This was according to Odwa Nweba, an attorney at Stellenbosch University (SU) Law Clinic.
SU Law Clinic was granted permission by the Constitutional Court to continue with their class action after the order dismissing the LDG’s application for leave of appeal was granted on 26 June 2023, said Nweba. The lawsuit has been ongoing since 2019, stated Nweba.
The class action will enable SU Law Clinic to represent potentially hundreds of thousands of consumers in the suit, according Nweba.
Stellenbosch University (SU) law students were involved in the initial research of a claim in which SU Law Clinic represents a group of consumers who allege that they have been induced to consent to “agreements” for unwanted services, according to Odwa Nweba, attorney at SU Law Clinic. PHOTO: Jodi-Mari Adams
Trapped in dubious agreements
The class has taken action against the Lifestyle Direct Group, according to Nweba.
Consumers believed that they could use websites affiliated with the Lifestyle Direct Group to apply for loans and find loan services for free, said Nweba.
However, they found themselves entering into unwanted agreements via these websites that allegedly use dark pattern marketing to get the consumers to enter into these agreements, according to Nweba.
Once a consumer has filled out their details on one of the websites, money is taken from their account, according to Ignatius Heyns, one of the members of the class.
Consumers who cancelled their subscriptions were legally threatened to pay the Lifestyle Direct Group, claimed Heyns.
“My parents, when they were still alive […] were scared when they received these lawyers letters […] and then they actually paid that money,” said Heyns.
Class actions in South Africa (SA) provide a platform whereby larger numbers of victimised “Davids” are able to acquire justice from “Goliaths” who are acting up, said Odwa Nweba, attorney at Stellenbosch University’s (SU) Law Clinic. SU Law Clinic’s case against the Lifestyle Direct Group is one of 10 certified class actions in SA. AUDIO: Jodi-Mari Adams
Developing litigation
“Class actions are still a new and developing form of litigation in South Africa. It will take a significant number of years for it to become the norm,” according to Nweba.
A class action is the best route to take for this lawsuit, as the legal representative is able to represent a large number of people, said advocate Sarah Sephton, advocate of the High Court of South Africa.
Additionally, they do not need to lead evidence on behalf of each individual, but only on behalf of the group, according to Sephton.
Stellenbosch University (SU) Law Clinic will “employ all its available resources and human resources where necessary” in their recently certified class action case against the Lifestyle Direct Group, said Odwa Nweba, attorney at SU Law Clinic. PHOTO: Jodi-Mari Adams
Receiving justice
The lawsuit is expected to last “a few more years”, according to Nweba.
“Basically, what they’re hoping for is that companies can’t use this evasive way of getting people to subscribe to stuff that they don’t even know they’re subscribing to,” said Heyns.