Consumer Goods and Services Ombud (CGSO) issues 1st warning of 2022 against e-commerce retailer

14 February 2022
Accounting
South African Accounting Academy

CGSO only issues a consumer alert if suppliers don't co-operate with their office and continue to rack up complaints of a similar nature.

Online at Liepies currently has 11 complaints against them - including not delivering on orders and refunds not materialising.

The CGSO is therefore alerting consumers to exercise extreme caution when ordering from this site.

Click here to access the press release:

https://www.cgso.org.za/cgso/download/cgso-press-release-december-2021/#

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 supplier of consumer goods and services, your clients face dire consequences e.g. being investigated by the CGSO, if consumers lodge complaints against them with the CGSO. This could lead to additional considerations by you, e.g. going concern, provisions, contingent liabilities, 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 supplier of consumer goods and services, your clients face dire consequences e.g. being investigated by the CGSO, if consumers lodge complaints against them with the CGSO.

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

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