The role of CGSO in CPA Dispute Resolution

The role of CGSO in CPA Dispute

ResolutionN Melville

The role of Ombudsman in Dispute Resolution• 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. .

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).


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.


DEVELOPMENT

http://www.aoma.org.za/

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

• 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

.


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


Characteristics

The role of Ombudsman in Dispute Resolution• What is an

Ombudsman• The CPA Accredited

Ombudsman—Role and Function

The role of Ombudsman in Dispute Resolution

• 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

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


• 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


• 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


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


• 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


• 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


Complaint: • I stopped paying my account

because the goods were not delivered/ were defective/ were not returned from repair

Complaint: Combined

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


PROBLEM42% of the cases received by CGSO are referred elsewhere or closed because outside our Jurisdiction

Complaint: Combined

GOODS & SERVICES


SOLUTIONTell your customers whom they should complain toSee e.g.http://www.standardbank.co.za/standardbank/Personal/Delighted-or-disappointed

http://www.standardbank.co.za/standardbank/Personal/Delighted-or-disappointed



The role of CGSO in CPA Dispute Resolution

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