Legal framework for plain language

Taking its lead from the National Credit Act (which defines plain language in Section 64), the definition of plain language in the Consumer Protection Act is broad. It encompasses content, design, structure and readability aspects such as sentence structure and wording.

'A notice, document or visual representation is in plain language if it is reasonable to conclude that an ordinary consumer of the class of persons for whom the notice, document or visual representation is intended, with average literacy skills and minimal experience as a consumer of the relevant goods or services, could be expected to understand the content, significance, and import of the document without undue effort, having regard to:

(Section 22, Consumer Protection Act No. 68 of 2008)

The definitions of plain language in the National Credit Act and the Consumer Protection Act rely rely on an ‘ordinary consumer’ within the group of intended readers understanding the document. Therefore, we can surmise that testing documents with readers will be critical to assessing whether a document complies.

The National Credit Act sets out that companies may set up their ‘own evaluative mechanisms […] as long as the mechanism is fair and objective’. As yet, there have been no detailed guidelines on these mechanisms; however, Simplified offers a plain-language audit service which we believe encompasses the intentions of the legislation.

The Financial Services Board is currently revisiting its consumer education policy and the Life Offices’ Association has a complementary education policy to help consumers make informed decisions about long-term insurance products. The Financial Sector Charter includes objectives to educate consumers.

In 2000, major banks in South Africa adopted the Code of Banking Practice which set out their relationship with customers. Among other undertakings, the banks promised to: