Consumer Goods and Services Ombud (CGSO): Contracts, COVID, Cancellations and the CPA - Part 1

09 February 2022
Accounting
South African Accounting Academy

Just when we thought it was safe to make travel plans, Omicron unleashed afresh range of bans andrestrictions ahead of the festive season, resulting in cancelled flights and postponed holidays at a timewhen we had barely caught up for the initial burst of complaints sparked by the first three waves.

Based on the 14,438 complaints received between 1 March 2020 and 28/9 Feb 2021 (a 52% increase on the previous period), there is widespread confusion about the rights and responsibilities of affected parties in relation to claims for refunds where events or travel plans are cancelled.

As covered in a previous article on force majeure, we have established that suppliers may never apply a blanket no-refund policy, regardless of the circumstances.

Click here to download the Document:

https://www.linkedin.com/company/consumer-goods-services-ombudsman/posts/?feedView=all

How does this affect you and your clients?

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 a consumer, you also need to comply with the CPA and be aware of important information in this regard.

Relevance to Your clients:

As a consumer, your client also need to comply with the CPA and be aware of important information in this regard.

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