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    Home » Consumer Ombud Returns Nearly R12 Million
    ECONOMY

    Consumer Ombud Returns Nearly R12 Million

    August 7, 20253 Mins Read
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    CGSO CEO Queen Munya
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    In the past year, the Consumer Goods and Services Ombud (CGSO) managed to recover over R11.9 million for consumers, even though the number of complaints has increased. This amount includes refunds, repairs, replacements, and cancellations sorted out through their dispute resolution process. The figures cover a 12-month period ending in February 2025 and come during a challenging economic climate marked by increased online shopping and growing dissatisfaction among consumers.

    The CGSO’s latest annual report shows that more than 12,200 complaints were received during this period. Most of these complaints concerned faulty goods, delayed or failed deliveries, and disagreements over cancellation policies. Despite the rise in complaints, the ombud ruled in favour of the consumers in most cases, highlighting their commitment to protecting consumer rights.

    Between March 2024 and February 2025, the CGSO successfully recovered nearly R12 million for consumers. This is slightly less than the previous year’s R12.13 million, even though consumers claimed about R1.4 billion in total. The ombud’s chief explained that such issues are more than just customer service problems—they are fundamental rights issues.

    Online shopping emerged as the sector with the highest number of complaints. Many consumers reported difficulties with digital platforms and marketplaces, often unsure who was responsible when goods were not delivered or turned out to be faulty. The CGSO warned that many customers still do not fully understand the risks involved in transacting with third-party sellers on online platforms, especially regarding delivery failures, return policies, and refunds. The main issues fell under three key consumer rights: receiving quality goods, timely delivery, and fair cancellation terms.

    The ombud’s chief expressed concern that as online shopping continues to grow, more consumers will face problems with unknown vendors, believing they are dealing with reputable platforms only to find themselves dealing with unfamiliar sellers when issues arise.

    To help consumers access justice, especially in rural and underserved areas, the CGSO has opened three satellite offices in collaboration with university legal aid clinics at Fort Hare and Venda. These centres provide face-to-face support, making it easier for consumers who lack online access to lodge complaints and seek assistance.

    The report also highlighted a steady rise in business participation in the scheme, with over 2,100 suppliers now registered. Although the average time to resolve cases increased slightly, most—62%—were settled within 60 days, meeting their service targets. Most complaints came from Gauteng, followed by the Western Cape and KwaZulu-Natal.

    The CGSO’s CEO noted the worrying trend that most complaints originate from urban areas, while many vulnerable consumers in rural and low-income communities remain unaware of their rights or how to enforce them. This issue became even more urgent in 2024, when South Africa faced a serious food safety crisis affecting children in poorer areas.

    Despite the positive results in resolving disputes, the report revealed a significant level of dissatisfaction among consumers. Total claims exceeded R1.4 billion, indicating a big gap between what consumers expect and what the law offers under the Consumer Protection Act.

    The CGSO pledged to continue expanding its outreach, education, and partnership efforts to ensure all consumers in South Africa are aware of their rights and know how to protect them.

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