The role of CGSO in CPA Dispute Resolution

1. The role of CGSO in CPA Dispute Resolution N Melville

2. The role of Ombudsman in Dispute Resolution • What is an Ombudsman

3. What is an Ombudsman? DEFINITION • A government official, especially in Scandinavian countries, who investigates citizens' complaints against the government or its functionaries. • An independent, impartial public official with authority and responsibility to receive, investigate or informally address complaints …, and, when appropriate, make findings and recommendations, and publish reports. . African Ombudsman Association Standards

4. What is an Ombudsman? ORIGIN • Originally in early Germanic tribes ombudsman recovered compensation • Old Norse word umbodhsmadhr: "trusty manager” • 1809, Swedish king taken prisoner by the Russian army. Parliament created RiksdagensJustitieombudsman (the Parliamentary Commissioner for Justice).

5. Traditional forms dispute resolution • Ethiopians – ‘EmbaTebaki’ (‘Keeper of the People's Tears') now = ombudsman • Zulu culture of South Africa ‘Lomxazululi' (‘Solver of Problems‘) also = ombudsman

6. What is an Ombudsman? DEVELOPMENT • Rather slow start • Finland (1919), Denmark (1955) and Norway (1962): • Second half of the 20th century ombudsman concept caught on internationally and spread worldwide • Ombudsmen now present at a national level of government in approximately 120 countries (of which 27 are in Africa) • www.aoma.org.za .

7. What is an Ombudsman? OMBUDSMANIA • Aged Care ombudsman • Airport Ombudsman • Anti- discrimination Ombudsman • Business Ombudsman • Children's Ombudsman • Citizens Advocate • Citizenship & Immigration Services Ombudsman • Culinary Institute of America Ombudsman • Dental Ombudsman • Estate Agents Ombudsman • Electricity Supply Ombudsman • Funeral Services Ombudsman • Housing Ombudsman Service • Legal Service Complaints Commission • Media Ombudsman • Medical Ombudsman • Milk Ombudsman  • Police Ombudsman • Privacy Ombudsman • Public Transport Ombudsman • Sectional Title Ombudsman • Toxic Substances & Disease Registry Ombudsman • Wireless Application Service Providers’ Association Ombudsman

8. What is an Ombudsman? South Africa • Ombudsman concept in the private sector in South Africa in the late-1980s: • Creation of the Long-term (life) (1985) & Short-term insurance ombudsmen (1989) • The Banking Ombudsman, first established in 1997, briefly operated under the politically correct name Office of the Banking Adjudicator .

9. What is an Ombudsman? Characteristics • "Ombudsman" should only be used if six key criteria are met: • independence of the Ombudsman from those the Ombudsman has the power to investigate • accessibility • fairness • public accountability and transparency • effectiveness • impartiality

10. The role of Ombudsman in Dispute Resolution • What is an Ombudsman • The CPA Accredited Ombudsman—Role and Function

11. The role of Ombudsman in Dispute Resolution • The CPA Accredited Ombudsman—Role and Function

12. Protection of Consumer Rights and Consumer’s Voice TRIBUNAL EQUALITY COURT COURT NATIONAL CONSUMER COMMISSION CONSUMER COURT/ PROTECTOR INDUSTRY/ OMBUD INTERNAL CONSUMER BODY MEDIA INDUSTRY BODY ADR AGENT Complaint options

13. HIGH COURT APPEAL/ REVIEW COURT TRIBUNAL CONSENT ORDER FINDING OF LIABILITY CONSUMER:NON REFERRAL/ LEAVE OF THE TRIBUNAL COMMISSION: APPLICATION FOR ADMINISTRATIVE FINE AWARD DAMAGES COMMISSION CONSUMER COURT OMBUD SUPPLIER: NO OMBUD SUPPLIER: UNDER OMBUD ADR AGENT * COMPLAINANT

14. The Code

15. The Code • S 82(2) The Commission, acting on its own initiative, or in response to a proposal from persons conducting business within a particular industry, may recommend a proposed industry code to the Minister

16. The Code AFTER • (a) publishing it for public comment; • (b) considering any public submissions; • (c) consulting with— (i) persons conducting business within the relevant industry; and (ii) relevant accredited consumer protection groups

17. The Code Code applies to: • All suppliers in the consumer goods and services industry, including retailers, suppliers, wholesalers, distributors, manufacturers, producers, importers , intermediaries, logistics and supply chain agents • UNLESS • they are regulated elsewhere by a code prescribed by the Minister and/ or • a complaint falls within the jurisdiction of an Ombud with jurisdiction, or an industry Ombud

18. The Code Obligations • Participate in the scheme • Establish an internal complaints-handling process • Advise customers that bound by Code • Provide details of how complainants may lodge complaints against you • Provide consumers with the contact details of Consumer Goods and Services Ombud • Ensure that relevant staff members have suitable working knowledge of Act, Code and CGGSO’s Procedures

19. The Code OVERLAP CPA Many transactions under CPA are accompanied by credit agreements which are covered by the National Credit Act (NCA). This causes confusion as to which regulatory system complaints fall under: the National Consumer Commission/ the Consumer Goods & Services Ombud or the National Credit Regulator / Credit Ombud

20. The Code Obligations Section 5(2)(d) of the Consumer Protection Act provides: • This Act does not apply to any transaction— • (d) that constitutes a credit agreement under the National Credit Act, but the goods or services that are the subject of the credit agreement are not excluded from the ambit of this Act;

21. DELIVERY OF GOODS & SERVICES Quality of Goods Goods must be: • of good quality, • in good working order • free of defects, • be capable of being used for a reasonable period of time, • reasonably suitable for the specific purpose for which a consumer wishes to use them. Important that the sales person establishes what the customer wants to use them for GOODS & SERVICES

22. DELIVERY OF GOODS & SERVICES Overlap • Problem • Not all of the sections of the CPA relate to either goods, services or the agreement. In fact, many of the important safeguards created for consumers relate to the marketing, or promotion, of goods GOODS & SERVICES

23. DELIVERY OF GOODS & SERVICES Overlap • Where there is a single agreement that covers both the terms of the sale of the goods or services and the provision of credit to finance the transaction, both Acts apply, but to different aspects of the transaction. The CPA applies, for instance, to the delivery and quality of the goods and services while the NCA applies to the form and content of the agreement. GOODS & SERVICES

24. DELIVERY OF GOODS & SERVICES FOR CGSO Complaint: • No product delivered • Wrong product delivered • Product defective • Product taken for repairs • Product caused damage/ made sick • Price not as advertised GOODS & SERVICES

25. DELIVERY OF GOODS & SERVICES FOR CREDIT OMBUD • I cannot pay my account • They will not give me a copy of the contract • The amounts in the contract are wrong • They did not tell me that the total price would be -- GOODS & SERVICES

26. DELIVERY OF GOODS & SERVICES FOR CREDIT OMBUD • I paid the amount outstanding but was handed over to debt collectors/ black listed • The account was opened in my name but not by me • The goods were repossessed GOODS & SERVICES

27. DELIVERY OF GOODS & SERVICES Complaint: Combined Complaint: • I stopped paying my account because the goods were not delivered/ were defective/ were not returned from repair GOODS & SERVICES

28. DELIVERY OF GOODS & SERVICES Complaint: Combined CGCO advises the consumer to continue paying while the matter is sorted out and deal with it. We may have to refer the credit account side to the Credit Ombud later if that is not resolved by the supplier as well GOODS & SERVICES

29. DELIVERY OF GOODS & SERVICES Complaint: Combined PROBLEM 42% of the cases received by CGSO are referred elsewhere or closed because outside our Jurisdiction GOODS & SERVICES

30. DELIVERY OF GOODS & SERVICES Complaint: Combined SOLUTION Tell your customers whom they should complain to See e.g. http://www.standardbank.co.za/standardbank/Personal/Delighted-or-disappointed GOODS & SERVICES