By Zipho Dolamo
In a significant event held in collaboration with Business Day Dialogues Live in partnership with the Consumer Goods & Services Ombud (CGSO) unveiled its 2023/24 annual report. The event, masterfully hosted by MC Zanele Morrison, brought together key figures including the CEO Queen Munyai (CGSO), Michael Lawrence (board Chairperson of CGSO) Liaquat (Lee) Soobrathi (Ombudsman) and acting commissioner for the National Consumer Commission, Hardin Ratshisusu. The theme for this year’s report, “Leave no one behind,” echoed the organization’s commitment to inclusivity and fairness in consumer protection.
Celebrating CGSO’s Milestones and Impact
Since its establishment in 2013, the CGSO has played a crucial role as an impartial and independent dispute resolution body. Its mission 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” said Munyai.
The CGSO operates as a non-profit organization 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 (SMMEs) with a turnover of less than R1 million are exempt from fees but must still register. Importantly, 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 for CGSO. The organization responded to 33,467 queries via email and captured 11,282 complaints, of which 1,885 were outside its jurisdiction. Notably, 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 R12.9 million, showcasing the tangible impact of CGSO’s interventions.
CGSO also launched a mobile app, enhancing accessibility for consumers. Despite the challenges, the organization maintained a healthy cash reserve and achieved its tenth consecutive clean audit, a testament to its robust financial management and governance practices.
Key Developments and Insight’s
A highlight of the event was the introduction of the new Ombudsman, Mr. Lee Soobrathi, whose appointment signals a new chapter for CGSO. The organization also underscored its commitment to consumer education and protection, particularly for vulnerable groups. Efforts included translating the South African complaints guide into all official languages, including Braille, and developing policies tailored to the needs of vulnerable consumers.
Munyai shared some insightful 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.
Strengthening Outreach initiatives and Collaboration
CGSO’s outreach programs, particularly in rural areas, highlighted the need for increased consumer awareness. Collaborative efforts with academia, through university legal outreach programs, aim to bridge gaps in consumer education. The aim according to Munyai is to launch at least three walk-in complaints centers 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, according to Munyai.
The event featured a panel discussion with notable panelists including Soobrathi, Munyai, and Lawrence. The discussion delved into the benefits of entities like CGSO, with Lawrence emphasizing the importance of consumer voices in the age of social media. Munyai reiterated CGSO’s strategy of collaborating with higher education institutions to reach marginalized communities.
Challenges and Future Directions
Despite its successes, CGSO continues to face challenges, particularly in compelling supplier participation. Munyai highlighted the organization’s ongoing efforts to educate suppliers about the mandatory nature of 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 recognizing compliant organizations and balancing sustainability issues. Munyai acknowledged these points, emphasizing CGSO’s readiness to evolve and adapt its strategies to better serve consumers and suppliers alike.
Closing Remarks
In her closing remarks, Munyai reiterated the importance of CGSO’s role in maintaining a fair marketplace. The organization’s commitment to continuous learning, unlearning, and relearning processes was emphasized as key to its future success, as articulated by Lawrence. The event concluded with a strong message to businesses yet to join the CGSO scheme: compliance is not only a legal obligation but also a pathway to fostering consumer trust and enhancing the overall standard of conduct in the industry.
The 2023/24 annual report event underscored CGSO’s pivotal role in consumer protection and its unwavering commitment to ensuring no one is left behind. As the organization moves forward, it remains dedicated to upholding the rights and needs of consumers, fostering a fair and just marketplace for all.