Limpopo store ordered to change name linked to Nelson Mandela

A STORE  operating under a controversial name linked to the legacy of Nelson Mandela has found itself in legal hot water, as the Nelson Mandela Foundation (NMF) moves to protect the iconic reputation of South Africa’s former president.

The Mandela Discount Shop, situated in an isolated truck parking area between Musina and the Beitbridge border post, has been accused of misleading consumers and undermining the renowned Mandela brand.

The saga began when the NMF became aware of the shop's name in March 2019. Investigations revealed that the local community was largely unaware of the store, and the premises had been rebranded multiple times in the past—from Gateway Truck Park to Bell Park and finally to Limpopo Truck Park. However, its current name raises red flags, leading the NMF to argue that it misleadingly suggests an affiliation with the foundation.

The foundation maintains that the shop is exploiting Mandela’s legacy for profit, potentially tarnishing the revered name due to the lack of quality control over the goods sold. "The continued use of the name will cause prejudice," the NMF stated, underscoring the public interest in preserving Mandela’s honour.

Adding fuel to the fire, the shop has been noted for its poor administrative compliance, having failed to file annual company returns with the Companies and Intellectual Property Commission (CIPC) between 2022 and 2023. The NMF hoped this financial mismanagement could lead to the shop's deregistration, effectively removing it from the marketplace without legal action. However, in November 2023, the shop filed the outstanding returns following a demand letter, signalling its intention to continue trading under the disputed name.

The situation escalated when the NMF took formal action by approaching the Companies Tribunal to compel the shop to alter its name. Surprisingly, the shop did not challenge the tribunal's application, despite having received multiple correspondences from the foundation, including a demand letter confirmed by investigators.

In a decisive ruling, tribunal member Minah Tong-Mongalo confirmed the iconic status of the Mandela name, stating, "Ordinary people will overwhelmingly recall ‘Mandela,’ not the descriptive additions such as ‘Border’ or ‘Discount Shop.’" The tribunal concluded that the dominant use of “Mandela” in the store’s name could easily lead consumers to assume a connection with the NMF, thereby reinforcing the foundation’s argument of public misrepresentation.

Last month, the tribunal ordered the Mandela Discount Shop to rename itself to one devoid of the term “Mandela” within three months of receiving the order. Should the shop fail to comply, the CIPC was instructed to change the store’s name to its company registration number to ensure the disputed term is eradicated from the market. The tribunal also ordered that the shop cover the legal costs incurred by the NMF during the proceedings, following the foundation's efforts to resolve the issue amicably.