18 Mar 2013 Official launch of SA’s retail ombudsman

The Consumer Goods Council of South Africa (CGCSA) has established the retail ombud to handle unresolved consumer complaints ranging from sour milk and worms in cans to dodgy cosmetics and broken appliances.

The aim is to speedily iron out challenges in addressing and resolving disputes between consumers and providers.

The Consumer Goods and Services Ombud is expected to ease pressure on the National Consumer Commission, which has been battling to address the hundreds of thousands of complaints being sent to its offices in Centurion, which are manned by some 70 staff members.

The ombud is set up in line with the Consumer Protection Act 68 of 2008, which came into full effect on 1 April 2011, with the aim of formalising the processing of consumer complaints and finding means to address complaints other than legal processes.

Acting commissioner of the National Consumer Commission, Ebrahim Mohamed, has welcomed the ombud, saying it would resolve complaints while the commission promoted informal means of dispute resolution and enforce functions assigned to it by the Consumer Protection Act.

“This is a positive step because it will be present in all provinces, which means extension of consumer protection mechanisms‚” Mohamed said.

Executive director of the Aerosol and Manufacturers Association and former head of legal and regulatory affairs at the CGCSA, Nick Tselentis, says the formation of the Ombud was a means of building of the guidelines of the CPA.

“The process needed full time assistance from the industry whose efforts varied in terms of service standards to the consumer. In case of disputes consumers find it frustrating when they do not get answers from retailers regarding a complaint‚” Tselentis said.

Tselentis said the next step would be for the ombud to formalise a board and to appoint an ombudsman, who will operate from an office in Randburg.

The Ombud call centre has been running successfully for the past year and has reportedly shown outstanding resolution statistics to date.

Chris Jacobs, the call centre manager, says an office of 125 people had been set up in Cape Town to perform the functions of the ombud until it was established.

This office has received up to 500 calls a month and also deals with the customer care department of some of SA’s biggest brands‚ Jacobs said.

Patricia Pillay of the SA Retail Council explains more: “Consumers would first come to the ombud if they have an issue. This will allow the NCC to focus on industries that do not have ombuds in place or target major industry issues.”

Pillay says once the ombud is accredited, companies that do not form part of the CGCSA will still be required to adhere to the industries’ code of conduct and can be brought before the ombud.

Like the NCC, the ombud’s powers will be limited in so far as it may rule that a product be replaced, but it cannot go as far as awarding damages as this can only take place in a civil court.

The council established the ombud to provide guidelines for the consumer goods and services industry on the minimum standards of conduct expected when engaging with consumers and to assist in resolving disputes.

Complaints process for the consumer goods and services industry:

Lay a complaint via the call centre

1. Keep in mind that a complainant who is dissatisfied with goods or a service they received from a supplier has to first refer the matter to the supplier as soon as practically possible.

Referral to ombud office

2. A complainant who referred a complaint to the supplier concerned, and who remains dissatisfied with the manner in which the supplier is dealing with it, or how it has been dealt with, may refer the complaint to the ombud.

Complaint resolution by the supplier

3. If a complaint is referred to a supplier by the ombud, the supplier shall:

• Contact the complainant to clarify the issue.
• If able to resolve the complaint, provide the ombud with proof the complaint has been settled.
• Undertake any investigation that is necessary.
• If unable to resolve the complaint, provide the ombud with a report outlining the investigation that the supplier undertook and the reasons the matter was not resolved.
• If the ombud is of the view that the supplier has provided the assistance sought by the complainant or provided an acceptable explanation for the conduct, the ombud may inform the complainant of this fact and indicate that the file will be closed, unless the complainant challenges the view or provides new information about the complaint within 10 business days.
• During the set time, the ombud may facilitate a settlement between the supplier and the complainant if the ombud considers it would be appropriate and helpful to do so.

Investigation and resolution

4. The ombud may enter into a full investigation if it decides that it requires this for the purpose of arriving at a resolution on a matter.