NCC Achievements and Strategic Objectives 2011/12

1. TRADE AND INDUSTRY PORTFOLIO COMMITTEE PRESENTATION 11 October2012 Presenter :Ebrahim Mohamed Acting Commissioner ;NCC

2. ANNUAL REPORT 2011/12

3. NCC Delegation –- ––

4. Strategic Objectives • The work of the National Consumer Commission was guided by the following strategic objectives ; • To Protect Consumer from Hazards through Advocacy; Education and Awareness • Improve consumer redress as envisaged in the CPA • Protect Consumers from unethical business practices and misconducts through law enforcement and compliance • Conduct research for policy, legislative and regulatory improvement • Customer and Stakeholder Relationship Management • Ensure the establishment of a functional organization • Achieve the mandate of the NCC with an optimal staff complement • Implement an organization-wide performance management system • Create the brand of the NCC as South Africa’s consumer voice • Provision of Effective ICT infrastructure • Implement an effective and efficient financial management system

5. Highlights -Awareness: Public awareness of consumer rights for 22 557300 consumers via print and electronic media. Provincial seminars onthe CPA targeted at community based non-governmental organizationswere undertaken. -Consumer education: toschools during the Nelson Mandela 2011birthday celebration at Sunnyside Primary School. Interacted in person with 6 708 consumers and business/NGOrepresentatives towards consumer education on the CPA. -Research: has been conducted into the Banking, Airlines, and AuctionsIndustries. Inadequate price disclosures were identified within the bankingindustry specifically as consumers transact via ATMs. The Commissionpresented these findings to banking sector and an improvement in thelevel of price disclosures has been observed which makes it easier forconsumers to exercise their right to choose.The Airlines Industry is also responding to the research findings and hasstarted aligning its contracts with the provisions of the CPA. A ConsumerAffordability Index, a measure of affordability of various basic goods byconsumers was compiled. This Index has given the Commission a glimpseinto the levels of affordability of consumers of different income groups. Itis expected that the Index will assist the Commission in formulating policypositions towards improving the lives of consumers.

6. -Redress: The Commission assisted thousands of consumers who lodged complaints. The Commission’s interventions has translated into atotal of R26 619 994 being refunded to consumers in this regard. Redress in the form of replacement and a restoration was also achievedwith 405 replacements of faulty products mostly within the Retail, ICT and Motor Industry sectors. Suppliers cancelled 416 contracts entered into by consumers as a result of practices undertaken notin the spirit of the CPA. These were mostly cell phone, timeshare and fitness center contracts. Furtherredress also took the form of repairs,written apologies and gift vouchers as a gesture of good will.Using conciliation methods, the Commission was instrumental in restoring relationships betweensuppliers and consumers that had deteriorated as a result of misunderstandings or lack ofcommunication. -Pro-active investigations: were also conducted into the Retail and Manufacturing,ICT and open Medical Aid Schemes. Interventions in this regard have started yielding fruit as theterms and conditions of business practice within these industries are becoming more CPA compliant.The Commission has 107 compliance notices before the National Consumer Tribunal for adjudication.Seventy nine (79) of the compliance notices were objected to by suppliers whilst 28 are defaultswherein the suppliers neither objected nor complied with the notices. -Industry Code Accreditation: Draft Guidelines on theaccreditation process were developed and will be published in the new financial year .

7. Performance Against the Business Plan