Consumer Goods & Services Ombud event reiterates focus on inclusivity, fairness

The Consumer Goods & Services Ombud (CGSO) unveiled its 2023/24 annual report in a significant event held in collaboration with Business Day Dialogues.

The event, hosted by MC Zanele Morrison, brought together CGSO CEO Queen Munyai; CGSO chair Michael Lawrence; CGSO ombudsman Liaquat (Lee) Soobrathi; and acting commissioner for the National Consumer Commission Hardin Ratshisusu. The theme for this year's report, “Leave no one behind”, echoed the organisation’s commitment to inclusivity and fairness.

Celebrating milestones

Since its establishment in 2013, the CGSO has played a crucial role as an impartial and independent dispute resolution body. Its mission, says Munyai, is to “assist consumers in understanding their rights and seeking redress in cases where suppliers violate the Consumer Protection Act (CPA). The values of fairness, impartiality, respect and accessibility are at the core of CGSO’s operations, aiming to elevate the standards of good conduct in consumer transactions.” 

The CGSO operates as a nonprofit organisation funded by the industry, with mandatory participation for all eligible companies. Companies are required to declare their annual turnover and pay participation fees based on a percentage of this turnover. Though small, medium and micro enterprises with a turnover of less than R1m are exempt from fees they must still register. The CGSO’s services are free for consumers, ensuring accessibility and support without financial barriers.

2023/24 achievements

The 2023/24 financial year was marked by significant achievements. The organisation responded to 33,467 queries via email and captured 11,282 complaints, of which 1,885 were outside its jurisdiction. Notably, the CGSO managed to close 10,140 cases, with an average resolution time of 41 days, well within the 60-day maximum. The facilitated refunds amounted to R12.9m, showcasing the impact of the CGSO’s interventions.

The CGSO also launched a mobile app, enhancing accessibility for consumers. Despite the challenges, the organisation maintained a healthy cash reserve and achieved its 10th consecutive clean audit, a testament to its robust financial management and governance practices. 

Key developments and insights 

A highlight of the event was the introduction of the new ombudsman, Soobrathi, whose appointment signals a new chapter for the CGSO. The organisation also underscored its commitment to consumer education and protection, particularly for vulnerable groups.

Efforts included translating the complaints guide into all official languages including Braille, and developing policies tailored to the needs of vulnerable consumers.

Munyai shared data on complaint categories, with online purchases (17%), electrical appliances (12%), and satellite and telecoms (10%) being the most frequent. Common consumer grievances included delayed deliveries, defective goods and poor complaint-handling by suppliers.

Outreach initiatives and collaborations

The CGSO’s outreach programme, particularly in rural areas, highlighted the need for increased consumer awareness.

Collaborative efforts with academia, through university legal outreach programmes, aim to bridge gaps in consumer education. According to Munyai, the aim is to launch at least three walk-in complaints centres with the help of the law clinics at varying universities. Additionally, partnerships with media and NGOs in the consumer education space have been instrumental in exposing bogus and misleading practices. 

The event featured a panel discussion into the benefits of entities like the CGSO, with Lawrence emphasising the importance of consumer voices in the age of social media. Munyai reiterated the CGSO’s strategy of collaborating with higher education institutions to reach marginalised communities.

Challenges and the future

Despite its successes, the CGSO continues to face challenges, particularly in compelling supplier participation. Munyai highlighted the organisation’s ongoing efforts to educate suppliers about the mandatory nature of the CGSO’s code.

The panel also discussed the implications of online scams and the importance of consumer education in ensuring safe online transactions, with Lawrence urging consumers to do their “due diligence” by gathering information about the legitimacy of online suppliers.

Questions from the floor brought forward suggestions for recognising compliant organisations and balancing sustainability issues. Munyai acknowledged these points, emphasising the CGSO’s readiness to evolve and adapt its strategies to better serve consumers and suppliers.

In her closing remarks, Munyai reiterated the importance of the CGSO’s role in maintaining a fair marketplace. The organisation’s commitment to continuous learning, unlearning and relearning processes was emphasised as the key to its future success, as articulated by Lawrence.

The event concluded with a strong message to businesses yet to join the CGSO: compliance was not only a legal obligation, but also a pathway to fostering consumer trust and enhancing the overall standard of conduct in the industry.

The 2023/2024 annual report event underscored the CGSO’s pivotal role in consumer protection and its unwavering commitment to ensuring no one was left behind.

As the organisation moved forward, it remained dedicated to upholding the rights and needs of consumers, fostering a fair and just marketplace for all.

This article was sponsored by the Consumer Goods & Services Ombud.