Company News - Lewis Group (LEW)

Company News - Lewis Group (LEW)

Favourable Judgment for Lewis by the High Court in the Appeal by the National Credit Regulator

Favourable Judgment for Lewis by the High Court in the Appeal by the National Credit Regulator in relation to the issues of Club fees and Extended warranties.

Shareholders are referred to the announcement released on SENS of 5 June 2017 regarding the favourable judgment for Lewis by the National Consumer Tribunal (NCT) in the matter between the National Credit Regulator (“NCR”) and Lewis Stores (Pty) Ltd (“Lewis”), which the NCR initiated in 2016 in relation to the issues of club fees and extended warranties. In a majority judgment, the NCT found that:

• The National Credit Act (“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”. It was   found that the club fees charged by Lewis do not form part of the cost of credit of any   credit agreement between Lewis and its customers;

• The Act provides that Lewis may include the cost of an extended warranty as part of its   fees and charges in its credit agreements with consumers and does not prescribe the   terms and conditions of the extended warranty offered by Lewis to its customers.

On 28 June 2017, the NCR filed a notice of appeal to the ruling and the appeal was heard on 17 April 2018 in the High Court of South Africa (Gauteng Division).
Shareholders are advised that today, 30th April 2018, the High Court handed down judgment in Lewis’ favour with regard to the appeal by the NCR. The matter was dismissed with costs against the NCR.

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