Photo by Delwyn Verasamy/M&G
The Consumer Goods and Service Ombudsman (CGSO) put R12.1 million worth of refunds for goods and services back into consumers’ pockets, ruling in their favour 60% of the time during the last financial year.
The CGSO’s 2023/24 annual report, released this week, revealed that the consumer complaints office responded to a total of 33,467 consumer queries – an average of 127 per day – up from 24,576 during the previous year.
Goods, services, and agreements still formed the bulk of consumer problems reported, compared to last year, accounting for 89% of the 11 282 complaints received. A total of 74% of these complaints related to online transactions, appliance manufacturers and retailers, and satellite and communications.
According to the annual report, of the 10 141 cases opened, 2 302 could not be actioned, including 1,885 cases that were referred elsewhere and 179 cases that had to be closed because a parallel legal process was underway.
Of the remaining 7,838 cases, 60% resulted in a favourable outcome for consumers, resulting in R12.1 million being recovered for consumers. This was less than the R12,9 million recovered in 2022/23 when the ombud ruled in favour of consumers in 55% of complaints handled by the office.
Ombudsman Lee Soobrathi, who took up the post in July 2023, said complaints regarding online transactions continue to dominate the cases handled by the office, which along with provincial consumer offices is educating consumers to not fall for deceptive practices.
“For the fourth consecutive year, online transactions accounted for the greatest number of consumer complaints lodged with this office. This is despite e-commerce only making up about five per cent of total retail sales in South Africa,” Soobrathi said.
“Almost all these complaints relate to items not being delivered on time (or at all), defective goods, or purchases that do not align with customer expectations,” he said.
Soobrathi said this is partly because of the nature of online shopping. In brick-and-mortar stores, customers have the opportunity to inspect goods and – except for furniture or large appliances – generally do not rely on the supplier to deliver. And, if goods are defective, the return and refund process is often handled in-store.
“A large part of our mandate is educating consumers to spot deceptive practices and to know their rights and responsibilities regarding refunds and returns,” he said.
His office grew its membership base by 35% during the period under review, increasing the number of paid-up industry participants from 1 356 to 1 833 suppliers, representing a retail footprint of 26,872 outlets countrywide.
CGSO CEO Queen Munyai said the membership fees paid by these businesses makes it possible for the office to provide “a free, independent, alternate dispute resolution service that benefits everyone”.
“It also funds our consumer education and outreach programmes for vulnerable consumers,” Munyai said.
Munyai said the office is collaborating with law faculties at universities across South Africa which is helping it extend its outreach programmes to rural and under-served communities.
“It also helps to boost awareness of the value of the alternate dispute resolution process among law students. This is in addition to the consumer awareness initiatives we undertake in partnership with the respective provincial consumer offices,” Munyai said.
The CGSO achieved its tenth consecutive clean audit in 2023/24.
The ombudsman is an impartial, independent alternative dispute resolution scheme established under section 82(6) of the Consumer Protection Act (CPA). It is mandated to mediate disputes between consumers and suppliers of goods and services and ensure businesses abide by the Consumer Goods and Services Industry Code of Conduct.