The effort, time and costs involved in following a consumer complaint may seem daunting for any consumer, however, going to court should always be your last option.
The effort, time and costs involved in following a consumer complaint may seem daunting for any consumer, however, going to court should always be your last option.
“Instead of going first to the National Consumer Commission (NCC), which focuses on investigating prohibited behaviour by suppliers and retailers, consumers are advised to first lodge a complaint with an industry Ombudsman,” explains Consumer Goods and Services Ombudsman (CGSO), Advocate Neville Melville.
“That means finding the ombudsman for the relevant industry – such as consumer goods and services, banking, motor, credit or insurance.”
Ombud schemes focus on resolving disputes between suppliers and customers, while the NCC focuses on investigating prohibited conduct and compliance with the Consumer Protection Act (CPA).
CGSO is the consumer goods and services industry's voluntary Ombud scheme, set up in line with the Consumer Protection Act.
It enforces the Consumer Goods and Services Industry Code of Conduct by receiving and dealing with consumer goods complaints by a consumer free of charge and investigating alleged contraventions.
CGSO first refers complaints to the supplier involved to enable them to settle, says Melville.
However if there is an ongoing dispute, an independent expert can be asked to inspect the goods or a professional mediator may be called to work out a settlement the consumer and supplier are happy with.
In mediations, the agreement is then recorded in the form of a consent order.
This can be made into an order of the court or of the National Consumer Tribunal (NCT), which can then be enforced through official channels.
“Parties mostly reach a settlement – whether the claim is met fully or another solution is found – such as repairing or refunding a defective item,” says Melville.
“Sometimes the complainant comes to understand they do not have a valid claim.”
He advises consumers to first escalate an unresolved complaint to the supplier’s management or central customer care department.
If that is unsuccessful, the appropriate ombudsman should be approached.
If the ombudsman cannot resolve it,their office will then give the complainant a letter advising them of the right to refer to the NCC.
“If no agreement is reached by the parties, neither an ombudsman nor the NCC can actually order the payment of damages or is equipped to assess the quantum of damages,” says Melville.
“The parties can however agree to try mediation through an ombudsman first.”
He adds that the vast majority of cases received are settled and need not go further.
If no agreement is reached by the parties and a party wishes to rely upon a CPA right in court they must first get a certificate from the NCT declaring the supplier in contravention of the CPA.
“Court should really be your last resort,” says Melville.
“In cases where nominal compensation is sought, an ombudsman can help resolve the complaint, but if the compensation for current and future losses is millions of Rands, it may be better suited to a court.”
