Consumer: Code of Conduct for Consumer Goods and Services Industry
Trade, Industry & Competition Minister Parks Tau has, by notice in the Government Gazette, published the Consumer Goods and Services Code of Conduct. The code and the office of the Consumer Goods and Services Ombud are the Industry Code and Ombud Scheme for the Consumer Goods and Services Industry set up in accordance with and accredited in terms of section 82 of the Consumer Protection Act, 2008 (Act No. 68 of 2008). The Code and the CGSO were established to guide the Industry as to what is considered the minimum standards of conduct expected when engaging with Consumers and to assist in resolving disputes that arise between Consumers and the Industry in terms of the CPA. Comment has been invited before 23 June.
The Consumer Goods and Services Code of Conduct (2025) outlines the framework for regulating interactions between businesses in the Consumer Goods and Services Industry and consumers, as well as providing mechanisms for resolving disputes. Below is a summary of its key sections:
Purpose and Objectives
- Establish minimum standards of conduct for businesses when engaging with consumers.
- Provide guidance on compliance with the Consumer Protection Act (CPA) and fair business practices.
- Educate consumers about their rights and available redress mechanisms.
- Offer an alternative dispute resolution scheme for consumer complaints.
Scope and Application
- Applies to all participants in the Consumer Goods and Services Industry unless regulated by other public regulations.
- Excludes transactions governed by other regulations, the automotive industry, electronic communication services, and transactions with organs of state or financial institutions.
- Participants must register with the CGSO, comply with the Code, and contribute to its funding.
Consumer Awareness
- Participants must establish accessible internal complaints-handling processes and prominently display their adherence to the Code.
- Consumers must be informed of their rights and the option to escalate unresolved complaints to the CGSO.
Establishment of the CGSO
- The Consumer Goods and Services Ombud (CGSO) is responsible for enforcing the Code, resolving disputes, and educating stakeholders.
- Funded by participant contributions (joining fees, annual levies, and special levies).
Complaints Process
- Stage 1: Consumers must first refer complaints to the business’s internal complaints-handling process.
- Stage 2: If unresolved, complaints can be referred to the CGSO within specified time limits.
- Stage 3: Businesses must attempt to resolve complaints referred by the CGSO.
- Stage 4: The CGSO investigates unresolved complaints, facilitates settlements, mediates disputes, or makes recommendations.
Jurisdiction
- The CGSO handles complaints from private individuals and juristic persons with annual turnover below the CPA threshold.
- Complaints must be recent (within three years) and not already under legal or regulatory consideration.
Confidentiality
- Personally identifiable information is protected unless disclosure is necessary for resolving disputes or required by law.
Ombudsman
- Appointed by the CGSO Board for a three-year term (renewable once).
- Must be independent, legally qualified, and experienced in dispute resolution.
- Responsible for day-to-day administration, issuing recommendations, and promoting the CGSO’s services.
Board Functions
- Govern the CGSO, ensure impartiality, develop strategies, manage risks, and oversee financial reporting.
Key Features
- Free service for consumers.
- Annual reports on the Code’s effectiveness and complaints data.
- Collaboration with other accredited Ombuds to reduce complexity and improve consumer access.
This Code aims to balance consumer rights with business interests, promote fair practices, and provide efficient dispute resolution mechanisms.