Transcript Document

The role of CGSO
in CPA Dispute
Resolution
N Melville
The role of Ombudsman in Dispute Resolution
• What is an
Ombudsman
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.Association
.
African
Ombudsman
Standards
What is an Ombudsman?
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
What is an Ombudsman?
DEVELOPMENT
• 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
What is an Ombudsman?
OMBUDSMANIA
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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
What is an Ombudsman?
South Africa
• 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
.
What is an Ombudsman?
Characteristics
• "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
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
Protection of Consumer Rights and Consumer’s Voice
TRIBUNAL
EQUALITY
COURT
INDUSTRY
/ OMBUD
ADR
AGENT
COURT
NATIONAL
CONSUMER
COMMISSION
INDUSTRY
BODY
INTERNAL
CONSUMER
COURT/
PROTECTOR
CONSUMER
BODY
Complaint options
MEDIA
HIGH COURT
APPEAL/ REVIEW
COURT
TRIBUNAL
CONSENT ORDER
FINDING OF LIABILITY
CONSUMER: NON REFERRAL/ LEAVE
COMMISSION: APPLICATION FOR
OF THE TRIBUNAL
ADMINISTRATIVE FINE
AWARD DAMAGES
COMMISSION
CONSUMER COURT
OMBUD
SUPPLIER:
NO OMBUD
SUPPLIER:
ADR AGENT *
COMPLAINANT
UNDER OMBUD
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
Code applies to:
• 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
The Code
Obligations
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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
The Code
OVERLAP CPA
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
The Code
Obligations
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;
DELIVERY OF GOODS & SERVICES
Quality of Goods
Goods must be:
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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
Overlap
• 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
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
Overlap
• 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.
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
FOR CGSO
Complaint:
• No product delivered
• Wrong product delivered
• Product defective
• Product taken for repairs
• Product caused damage/ made sick
• Price not as advertised
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
FOR CREDIT OMBUD
• 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 -GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
FOR CREDIT OMBUD
• 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
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
Complaint: Combined
Complaint:
• I stopped paying my account
because the goods were not
delivered/ were defective/ were
not returned from repair
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
Complaint: Combined
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
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
Complaint: Combined
PROBLEM
42% of the cases received by CGSO are
referred elsewhere or closed because
outside our Jurisdiction
GOODS & SERVICES
DELIVERY OF GOODS & SERVICES
Complaint: Combined
SOLUTION
Tell your customers whom they should
complain to
See e.g.
http://www.standardbank.co.za/stand
ardbank/Personal/Delighted-ordisappointed
GOODS & SERVICES