The Consumer Goods and Services Ombud (CGSO) is an impartial, independent dispute resolution scheme. We serve as a mechanism for the industry to manage its own disputes rather than referring every unresolved customer complaint to the National Consumer Commission (NCC) for investigation.

The cornerstone of our dispute resolution process is the Consumer Protection Act (CPA) and the Consumer Goods and Services Industry Code of Conduct. This was promulgated by the Minister of Trade and Industry on 29 April 2015, making it mandatory for all qualifying businesses to participate in the scheme. The GCSO is run as a not-for-profit organisation and is funded through annual participation fees based on a percentage of annual turnover. SMMEs join free of charge. By signing up, participants commit to adhering to ethical practices, reassuring consumers that they may trade with confidence.

As part of our mandate, the CGSO reports to the Department of Trade Industry and Competition and the NCC on the nature and type of complaints received as well as non-cooperative suppliers. CGSO is governed by a Board of Directors comprised of Industry, Consumer Bodies, and independent representatives. Although the Board comprises industry representatives, directors play no role in the adjudication of complaints, ensuring that complaints are managed independently without the influence of industry. We pride ourselves on our excellent governance and have reported eight clean audits every year since we have been in existence.

What we do

We receive and assist in resolving consumer complaints against members (participants) of the Consumer Goods and Services Industry in terms of the CPA and enforce the Industry Code of Conduct. We only take on consumer complaints after all internal customer complaints processes have been exhausted, giving businesses the opportunity to resolve outstanding issues before we become involved. Participants can also refer difficult cases to the Ombud instead of litigating and risking brand and reputational damage. These services are provided at no cost to the consumers and at no additional cost to paid-up participants.

Who must register

The Code applies to all retailers, suppliers, wholesalers, distributors, manufactures, producers, importers, intermediaries, logistics and supply chain agents in the Fast-Moving Consumer Goods (FMCG) industry unless regulated elsewhere by public regulation or a Code of Conduct accredited in terms of section 82 of the CPA. Currently, the only other accredited Code is the Motor Industry Code of Conduct. Failure to comply with the code is a breach of the CPA: in March 2021, the CGSO mandate was bolstered by a high court judgment compelling all qualifying entities operating in the consumer goods and services industry to sign-up to the scheme and pay their annual membership fees. By complying with the act, you will be joining more than 1,000 brands with more than 200 subsidiaries and over 21,500 retail outlets across South Africa. For a complete list of participants, please click here. Participants must display a decal on storefronts (where applicable), in their complaints’ departments and on their websites. Apart from signaling compliance with the Code, advertising your affiliation to the CGSO serves as a commitment to customer service and an indicator that consumers can transact secure in the knowledge that they will receive fair and reasonable treatment if anything goes wrong.

In terms of the CGSI code, which was promulgated by the Minister of Trade and Industry on 29 April 2015, participants shall contribute to the funding of the operations of the CGSO by means of the payment of a joining fee, an annual levy and (if necessary) a special levy, as shall be determined from time to time by the Board of the CGSO, based on annual turnover.

Why should you register

In terms of the consumer goods and services industry code of conduct, it is mandatory for businesses that provide a service to the public and /or trade in fast moving and other consumer goods to participate in the scheme. By signing up to the Scheme, you are ensuring that your brand receives the following competitive advantages:

• Compliance with the CPA sends a powerful message to consumers.
• Unlimited access to an independent professional body to mediate customer complaints and disputes relating to the Code or CPA.

Additionally, the CGSO is part of the industry value chain by:

o   facilitating unbiased, quick, and effective dispute resolution between consumers and industry members in terms of the CPA;

o   advising and guiding industry to minimum standards when engaging with consumers;

o   collecting and analysing industry data relating to systematic and recurring problems, and making recommendations on how to resolve these issues;

o   reducing the administration burden on participants by enabling them to escalate difficult complainants to the CGSO for mediation, thereby saving time, effort and costs;

o   advocating for restorative, not punitive action against transgressors of the CPA and the Code;

o   identifying ways of increasing CPA compliance through the extension of internal resolution processes; and

o   providing CPA-awareness training for client-facing staff at no additional cost.

How to sign up

Avoid the reputational and regulatory risk that results from not handling customer complaints well by becoming Code and CPA-compliant. Join more than 1,000 brands already on the CGSO’s list of registered participants. Call us today on (011) 781 2607, and our Business Development team will take you through our registration process, or visit our website  to register online.

“Business owners should view us as a partner whose mission it is to promote mutual beneficial relationships between them and their customers. since 2015 we have successfully mediated [61 418] complaints, and in many cases salvaging brand reputations and customer relationships in the process. We look forward to being of service to you.”  ─ Queen Munyai, Chief Executive Officer, CGSO.

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