The role of CGSO in CPA Dispute Resolution N Melville
Dec 16, 2015
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. .
What is an Ombudsman?
African Ombudsman Association Standards
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 Riksdagens Justitieombudsman (the Parliamentary Commissioner for Justice).
What is an Ombudsman?
Traditional forms dispute resolution • Ethiopians – ‘Emba Tebaki’ (‘Keeper of
the People's Tears') now = ombudsman• Zulu culture of South Africa ‘Lomxazululi' (‘Solver of Problems‘) also = ombudsman
• 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.
What is an Ombudsman?
DEVELOPMENT
OMBUDSMANIA
What is an Ombudsman?
• 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
• 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
.
What is an Ombudsman?
South Africa
• "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
What is an Ombudsman?
Characteristics
The role of Ombudsman in Dispute Resolution• What is an
Ombudsman• The CPA Accredited
Ombudsman—Role and Function
Complaint options
Protection of Consumer Rights and Consumer’s Voice
TRIBUNAL
COURT
CONSUMER COURT/
PROTECTOR
INDUSTRY/ OMBUD
NATIONAL CONSUMER COMMISSION
INTERNAL CONSUMER BODY
MEDIA INDUSTRY BODY
ADR AGENT
EQUALITY COURT
TRIBUNALTRIBUNAL
COMMISSION: APPLICATION FOR ADMINISTRATIVE FINE
COMMISSION: APPLICATION FOR ADMINISTRATIVE FINE
COURTCOURT
OMBUDOMBUD
COMMISSIONCOMMISSION
COMPLAINANTCOMPLAINANT
FINDING OF LIABILITYFINDING OF LIABILITY
SUPPLIER: NO OMBUDSUPPLIER: NO OMBUD
CONSUMER COURTCONSUMER COURT
SUPPLIER: UNDER OMBUDSUPPLIER: UNDER OMBUD
ADR AGENT * ADR AGENT *
HIGH COURTAPPEAL/ REVIEW
HIGH COURTAPPEAL/ REVIEW
CONSENT ORDERCONSENT ORDER
AWARD DAMAGESAWARD DAMAGES
CONSUMER: NON REFERRAL/ LEAVE OF THE TRIBUNAL
CONSUMER: NON REFERRAL/ LEAVE OF THE TRIBUNAL
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
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
The Code
• 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
Code applies to:
The Code
• 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
Obligations
The Code
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
OVERLAP CPA
The Code
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;
Obligations
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.
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
Important that the sales person establishes
what the customer wants to use them for
Overlap
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
• 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
Overlap
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
• 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.
FOR CGSO
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
Complaint: • No product delivered• Wrong product delivered • Product defective• Product taken for repairs• Product caused damage/ made sick • Price not as advertised
FOR CREDIT OMBUD
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
• 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 --
FOR CREDIT OMBUD
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
• 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
Complaint: Combined
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
Complaint: • I stopped paying my account
because the goods were not delivered/ were defective/ were not returned from repair
Complaint: Combined
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
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
Complaint: Combined
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
PROBLEM42% of the cases received by CGSO are referred elsewhere or closed because outside our Jurisdiction
Complaint: Combined
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
SOLUTIONTell your customers whom they should complain toSee e.g.http://www.standardbank.co.za/standardbank/Personal/Delighted-or-disappointed