Code of conduct for consumer goods, services comes into effect

Friday, May 29, 2015

Johannesburg - The Consumer Goods and Services Industry Code of Conduct, which obligates suppliers to have proper complaint handling processes in place to resolve disputes, came into effect today.

The code is a result of a partnership between government and the private sector through the National Consumer Commission (NCC) and the Consumer Goods and Services Ombudsman (CGSO).

The code is an important component of the Department of Trade and Industry’s (dti) strategy to promote a fair, accessible and sustainable marketplace for consumer products and services.

Drafts of the code were published for public comment and the comments that were received were taken into consideration in drafting the final version of the code.

With the prescription of the code, Trade and Industry Minister Rob Davies accredited the CGSO as the official alternative dispute resolution scheme for the entire consumer goods and services industry, excluding the automotive industry and any other sub-sector regulated elsewhere.

The CGSO had previously operated on a voluntary participation basis.

Ombudsman of the CGSO, Advocate Neville Melville, said the code carries the weight of the law as failure to comply with it amounts to a contravention of the Consumer Protection Act.

Other than obligation imposed on suppliers to have in place proper complaint handling processes that resolve complaints and disputes in accordance with the law, the code comes with  other benefits for the consumer.

These include that consumer complaints must be dealt with timeously - within 15 business days - and that if suppliers are unable to resolve a complaint to the reasonable satisfaction of a consumer within that time frame they must inform the consumer of their right to refer the complaint to the CGSO.

Small businesses also benefit from the passing of the code and the accreditation of the CGSO in that those with a turnover of less than a million are exempted from paying fees to CGSO and those that are juristic persons with a turnover or assets of less than R2 million may use CGSO’s services in the same way as ordinary consumers.

Speaking at a media briefing on Friday, NCC Commissioner Ebrahim Mohamed encouraged consumers to make use of the CGSO.

“I want to encourage consumers to make use of the CGSO by lodging complaints with them. This is a vital alternative dispute resolution platform that was created for their benefit, with the assistance of government and business, working together to entrench the rights of consumers.

“The CGSO belongs to all who transact in this sector, and is not established to serve the interests of any party. Its job is to ensure that the principles, as contained in the CPA are upheld,” said Commissioner Mohamed.

Deputy Commissioner Thezi Mabuza said when a code is accredited it is given a five-year period for the gathering of data and review of it with an annual review of the code.

“Midterm [at three years] we will go back  to the industry to see how they are doing, so every year we look at the standard that we have set for them and what is the benefit to the consumer  and how far is the industry reacting.

“After the five years, we will go back to the Minister and advise him on whether we need an extension or maybe we need to establish another body as such,” she said.

Commissioner Mohamed said the launch of the code was a ground breaking development. - SAnews.gov.za