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CGSO: Draft Consumer Goods and Services Industry Code of Conduct
- 16 May 2025
- Regulatory Compliance and Legislation
- South African Accounting Academy
Summary:
The Department of Trade, Industry and Competition (dtic) has published the draft Consumer Goods and Services Industry Code of Conduct ("the Draft Code") and issued an invitation for the public to comment on the Draft Code in terms of the Consumer Protection Act.
Article:
The Consumer Goods and Services Industry Code of Conduct is a draft document intended to regulate interactions between consumer goods and services providers and consumers. It aims to establish an alternative dispute resolution mechanism and enhance consumer rights beyond those outlined in the Consumer Protection Act.
Amongst a wide range of requirements, the Draft Code requires that consumer goods and services providers (defined by the Draft Code as "Participants"):
- establish an effective Internal Complaints-Handling Process that is both accessible and understandable to all consumers; and
- keep proper records for a minimum of 3 (three) years of the complaints received.
The deadline for the public to provide written inputs on the Draft Code is 23 June 2025.
The Code and the Consumer Goods and Services Ombud (CGSO) were established to guide the Industry as to what is considered the minimum standards of conduct expected when engaging with Consumers and to assist in resolving disputes that arise between Consumers and the Industry in terms of the CPA. In light of the Code being recognised under the CPA, the Code shall be enforceable against Consumer Goods and Services Industry Participants.
This Code shall be enforceable by the CGSO in line with the terms of reference herein. A failure to comply with this Code amounts to a contravention of section 82 (8) of the CPA. Any provision of this Code that is inconsistent with the CPA is invalid to the extent of its inconsistency with the CPA and its provisions.
Click here to download the 34-page Gazetted Notice:
https://www.gov.za/sites/default/files/gcis_document/202505/52604gon6178.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- The Consumer Protection Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer and accountant, you need to be aware of the latest publications and media releases by regulators, e.g. the CGSO.
- As a consumer, you also need to be aware of the draft Code that is enforced by the CGSO.
Relevance to Your Clients:
- Suppliers and consumers have a duty to comply with the Consumer Protection Act, otherwise they could be held liable.
- As a consumer, your clients also need to be aware of the latest publications by the CGSO, as well as the draft Code that is enforced by the CGSO.