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Revised consumer code tightens oversight of businesses

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By Lebone Rodah Mosima

Businesses operating in South Africa’s consumer goods and services sector will face stricter regulatory oversight under a revised industry Code of Conduct that introduces mandatory quarterly reporting of non-compliant businesses to the National Consumer Commission (NCC).

The revised Consumer Goods and Services Industry Code of Conduct will take effect on December 1, 2026, replacing the previous code introduced in 2015.

The NCC and Consumer Goods and Services Ombud (CGSO) this week welcomed the publication of the revised code by Trade, Industry and Competition Minister Parks Tau.

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Published in Government Gazette No. 55719 under Notice 4264 of 2026, the revised code strengthens governance and oversight and establishes a framework for addressing businesses that fall within the jurisdiction of more than one accredited ombud scheme.

The institutions said the code sets minimum standards for businesses when dealing with consumers and provides access to independent alternative dispute resolution services.

The CGSO’s complaint-resolution services will remain free to consumers.

Acting NCC Commissioner Hardin Ratshisusu said the revised code affirmed the CGSO’s work over the years and recognised the importance of an effective alternative dispute resolution mechanism.

“A fair and compliant consumer goods and services sector relies on clear rules and effective accountability,” Ratshisusu said.

“The Code of Conduct puts those businesses who refuse to comply with the Consumer Protection Act more clearly in our sights.”

CGSO chief executive Queen Munyai described the revised code as a vote of confidence in the organisation’s work.

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“As an Ombud office, our role is not to police but to mediate and find workable solutions when suppliers are unable or unwilling to resolve disputes with consumers,” Munyai said.

“The new Code provides a solid, unambiguous framework that will strengthen consumer rights in South Africa by facilitating cross-sector collaboration.”

Munyai said the CGSO looked forward to working with industry and the NCC to improve compliance with the Consumer Protection Act and the code.

The revised code strengthens governance and accountability provisions, including explicit board responsibilities for risk management, conflicts of interest, internal audits and financial reporting. It also clarifies the respective responsibilities of the chief executive and ombudsman.

Cooperation with the NCC will be strengthened through formal quarterly reporting of non-compliant industry participants and a Compact Agreement governing the commission’s monitoring of the code’s implementation and application.

The revised code also establishes a framework for managing overlapping jurisdictions between accredited industry ombuds.

This recognises that some businesses operate across multiple industries and may therefore fall within the jurisdiction of more than one accredited ombud scheme.

The institutions said the code provides for greater cooperation between schemes, including the referral of complaints to the appropriate bodies, while preserving their respective areas of expertise.

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Businesses falling under multiple accredited ombud schemes will be required to contribute to the relevant schemes, with their funding contributions adjusted to account for overlapping jurisdictions.

Ombudsman Liaquat Soobrathi said the changes recognised that consumer transactions did not always fall neatly within the boundaries of a single industry.

“A business may provide different goods or services that fall within the jurisdiction of more than one accredited ombud,” Soobrathi said.

“The revised Code provides a framework for addressing these overlaps, ensuring that consumers are directed to the appropriate dispute resolution body while avoiding unnecessary duplication of industry funding obligations.”

He said the objective was to improve access to redress, strengthen cooperation between ombud schemes and reduce jurisdictional uncertainty for consumers and businesses.

Munyai said the revised code updated aspects of the complaint-handling process while retaining facilitation, mediation and recommendations. However, it did not materially change the process consumers must follow when lodging complaints.

“Consumers must first raise their complaint with the supplier and give the supplier an opportunity to resolve it,” she said.

“If the matter remains unresolved, they can contact CGSO for assistance and an assessment of whether the complaint falls within its jurisdiction.”

The CGSO assists consumers through facilitation, mediation and recommendations but does not impose administrative fines.

The NCC said matters requiring regulatory enforcement could be referred to the commission for investigation and appropriate action, including referral to the National Consumer Tribunal where warranted.

The tribunal has the power to impose administrative fines of up to 10% of a supplier’s annual turnover.

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