Ombud recovers R11.9m as online complaints increase
The Consumer Goods and Services Ombud (CGSO) has recovered just more than R11.9m for consumers in the past financial year as the number of complaints rose.
BusinessLIVE reports that the figure, covering the 12 months to end-February 2025, reflects refunds, repairs, replacements and cancellations secured through the CGSO’s dispute resolution process.
It follows a year marked by economic pressure, growing online retail activity and increasing consumer dissatisfaction.
According to the CGSO’s 2024/25 annual report released yesterday, more than 12 200 complaints were received, most of them relating to defective goods, late or failed deliveries and disputes over cancellation terms.
The ombud ruled in favour of consumers in most cases, it said.
Between 1 March 2024 and 28 February 2025, the CGSO recovered about R11 956 064 for consumers in cash or cash equivalents, compared with R12 134 480 in the previous year. This was compared with R1.4bn claimed by consumers, it said.
‘While these may sound like customer service problems, they are in fact customer rights issues,’ ombudsman Liaquat Soobrathi said.
Online transactions recorded the highest number of complaints by sector. The CGSO said it was still seeing a steady stream of complaints against digital platforms and marketplaces, often from consumers who were unsure who to hold accountable when goods were not delivered or turned out to be faulty, BusinessLIVE reports.
It warned that many consumers still did not understand the risks of transacting with online platforms that hosted third-party sellers, especially when it came to delivery failures, return policies and refund processes.
The most common issues fell under three areas of the Consumer Protection Act: the right to receive quality goods, the right to timely delivery and the right to fair cancellation terms.
To improve access to redress, particularly in rural and underserved areas, the CGSO said it had opened three satellite offices in partnership with legal aid clinics at the universities of Fort Hare and Venda.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
