The Advertising Standards Authority of South Africa (ASA), a self‑regulatory body of the advertising industry, upheld a complaint lodged by a competitor against Telimatrix’s advertising campaign and ordered the immediate withdrawal of two advertisements. Telimatrix complied but successfully appealed internally to the ASA’s Advertising Industry Tribunal after the complainant withdrew the basis of the complaint. Telimatrix alleged that the ASA’s Directorate had acted negligently, arbitrarily, and outside the ambit of the complaint, causing it pure economic loss of approximately R6.5 million. Telimatrix instituted a delictual damages claim. The ASA excepted to the particulars of claim on the basis that the pleaded facts did not disclose a wrongful act. The High Court upheld the exception, and Telimatrix appealed to the Supreme Court of Appeal.