Ombud gets R12.9 million back into consumers’ pockets

The Consumer Goods and Services Ombud managed to get R12.9 million back for consumers who were treated unfairly by businesses, handling more than 10,000 complaints in the process.

The Ombud’s office released its annual report for the 2023 financial year this week, showing it received 10,562 complaints, less than the 11,834 in the previous year. Consumers mostly complained about goods, services and agreements, with three sectors generating 63% of consumer complaints: online transactions, appliance manufacturers and retailers and satellite and communications. E-commerce accounted for 34% of all complaints, a notable increase from 25% in the previous year.

Of the 10,749 cases closed, the ombud was unable to assist with 2,363 complainants. About 2,044 of those complaints fell out of the ombud’s jurisdiction and were referred to other ombud offices, regulators and sector-specific alternate dispute resolution bodies.

In 4,610 of the cases, representing 55% of cases that fell within the ombud’s jurisdiction, the complaint was either fully or partially upheld by the ombud’s office. The R12.9 million recovered for consumers is more than the R11.4 million recovered in the previous period, although the office received fewer complaints.

The ombud found against the complainants in 3,776 (45%) of the cases, including 2,103 termination notices issued in line with section 70(2) of the CPA that provides for consumers to lodge complaints with the National Consumer Commission (NCC) after the parties failed to reach a settlement, or the supplier refused to cooperate.

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Only 983 complaints not upheld

Only 983 (12%) of complaints were not upheld and 290 cases were closed due to a lack of cooperation by the complainant, while 26% of cases were closed due to non-cooperation from suppliers.

“The CGSO owes its existence to many role players who came together to set up an ombud’s office in 2013 to promote fair business practices in line with the then relatively new Consumer Protection Act (CPA).

“That effort was boosted by the promulgation of the CGSI Code of Conduct in March 2015, which made it mandatory for all eligible businesses to participate in the ombud scheme. Since then, we have helped resolve over 70 000 disputes between businesses and their customers and in the process helped consumers to access redress while allowing suppliers the opportunity to do right by their customers,” Queen Munyai, the CEO says.

Munyai noted that while e-commerce now accounted for over a third of all complaints received, the nature of consumer complaints has not changed in 10 years. “Our case files – all 70 000 plus – tell pretty much the same tales of disappointment, crossed wires, rude staff, dismissive managers and suppliers who disappear, never to be seen again.”

She says fortunately, its members regard the office as a partner who can intervene when their internal systems get it wrong.

“They also can turn to us to counsel consumers who have unreasonable expectations, like the customer who demanded consequential damages of R59 million after discovering ‘crystal-like’ particles in a popular soft drink.”

Other cases are more heartbreaking, especially in the current economic climate, such as the complainant who lost R400 000 earmarked for a full renovation of his apartment which was never completed.

“Sadly, the customer passed away before he could make the last payment and when his widow went to ask for a refund of the monies paid to date, as was her right in terms of the law, she was ruthlessly dismissed and banished from their premises.

“She and millions like her have little to no recourse when dealing with suppliers who are not registered participants in the ombud scheme, purely because they are aware that the resources to tackle individual cases of fraud and bad practice are not there.”

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Easier to deal with registered companies

Munyai says where suppliers are registered participants, consumers have a much better chance of getting the protection afforded to them under the CPA, like the complainant who wanted to return a mattress after five months and the supplier wanted to deduct an amount for wear and tear.

“This is not allowed in terms of the CPA, which is clear that goods which fail as a result of a manufacturer’s defect within six months must be refunded, repaired or replaced according to the complainant’s wishes and once we pointed this out, the complainant was given a full refund.”

Consumers also have the responsibility to check invoices against purchases in the event of a dispute, she says. A consumer complained after he tried to return faulty batteries bought as backup power during load shedding, only to discover that the invoice reflected a different brand of batteries to the faulty ones he wanted to return.

“In cases like this, it is very difficult to reach a decision on the evidence or a balance of probabilities and complaints such as these end up having to be dismissed in accordance with our terms of reference.”