
Retail
Finance
ICT
ESG & Sustainability
Entrepreneurship
Automotive
Latest jobs
Manager: Public Participation | Cape Town | The City of Cape Town | 26 Sep |
More jobs |
The explanatory memorandum on the objects of the Bill provides that it seeks to advance a deliberate attempt by the state to "counter the normalisation of alcohol and liquor usage", citing the "prevalence of increased liquor consumption and alcohol-induced dangers to society (that) are increasing".
The Bill seeks to specifically amend section 9 (Advertising restrictions) of the Liquor Act 59 of 2003, as amended (the Liquor Act). Section 9 of the Liquor Act currently provides as follows:
Section 9 is retitled by the Bill as "Advertising and sale restrictions" and removes references to "liquor" in section 9 (1) and (2). In addition, the Bill adds the following as subsections (3) and (4):
(a) use advertisement as defined in the Liquor Products Act, 60 1989, as amended (the Liquor Products Act) to promote liquor or the consumption of liquor or cause a person to use advertisement for such purposes;
(b) promote or effect product placement, or cause a person to use promotion or product placement, to promote liquor or the consumption of liquor; or
(c) use a manufacturer's name or any brand element through direct or indirect means to promote liquor or the consumption of liquor.
Based on the above, the proposed amendments provide for an outright ban on the advertising, promotion and product placement of liquor to encourage liquor consumption in all forms of media. The amendments also prohibit manufacturers, distributors or retailers from organising, promoting or making financial contributions to an activity that promotes the consumption of liquor, among other measures.
Interestingly, the proposed amendments in the Bill closely align with the prohibition of the advertisement and promotion of tobacco products under the Tobacco Products Control Act 83 of 1993, as amended.
The Bill also seeks to introduce various key definitions in section 1 of the Liquor Act, which are crucial to understanding the scope of these proposed amendments:
The proposed definitions are drafted in very broad terms and will therefore have a far-reaching impact on all relevant stakeholders.
The Bill does, however, make provision for transitional provisions, which state that any agreement for the:
entered into before the commencement of the Bill as an Act, remains valid and enforceable, is not subject to the Act and may be executed after the commencement of the Bill as an Act.
Thus far, the Bill has received support from the Congress of South African Trade Unions (Cosatu). However, the Bill raises serious concerns about the potential adverse economic effects on both the liquor and creative industries.
The Bill is likely to significantly affect industry stakeholders, including liquor manufacturers, distributors, retailers, advertisers and event organisers who may rely on brand promotion to generate revenue. Notably, the Bill's restrictions on "organised activities" may effectively ban liquor brand sponsorship of sports, music and cultural events.
The proposed amendments, if effected, will have severe economic consequences including decreased revenue generated from liquor sales as well as job losses across all impacted sectors.
The notice of intention to introduce the Bill and an invitation to comment was published in the Government Gazette No. 41957, notice 619 of 2018, as far back as 4 October 2018, inviting interested parties and institutions to submit written representations on the proposed contents of the Bill to the Speaker of the National Assembly within 30 days of publication of the notice.
Following its introduction into the National Assembly, the Bill was referred to the Trade, Industry and Competition portfolio committee for consideration, which must give interested people and institutions an opportunity to comment on the Bill. The Bill will be debated in the committee and amended, if necessary.
Once this process is complete, the Bill is submitted to a sitting of the National Assembly for further debate before a vote is taken. After approval by the National Assembly, the Bill moves to the National Council of Provinces for consideration. Upon passing by the National Council of Provinces, the Bill is submitted to the President for assent.
It must be noted that the proposed amendments introduced by the Bill echo elements of the now-lapsed Liquor Amendment Bill, 2016, published in the Government Gazette for comment by the Department of Trade and Industry (as it was then) (the 2016 Bill).
Like the current Bill, the 2016 Bill sought to prohibit the advertisement of liquor, although only on public platforms. It therefore remains to be seen whether the current Bill will gain the necessary traction to be enacted into law, given its far-reaching implications for the liquor industry and beyond.
As South Africa weighs public health against economic impact, all eyes will be on the parliamentary process that will ultimately determine the fate of the liquor industry’s advertising future.
Manager: Public Participation | Cape Town | The City of Cape Town | 26 Sep |
More jobs |