The Consumer Goods and Services Ombud has called for more businesses to join its dispute resolution scheme, warning that rising complaint volumes, limited resources and patchy industry participation are placing consumer protection systems under strain.
In its latest annual report the ombud said it returned R11.9m to consumers in the 2024/25 financial year. However, consumers lodged claims exceeding R1.4bn, most of which fell outside its powers because they involved consequential damages the Consumer Protection Act (CPA) does not cover.
While the ombud ruled in favour of consumers in 64% of resolved complaints, its leadership said the system was being stretched thin partly because many businesses had not signed up to the scheme — despite a legal obligation to do so.
“The ones that are dragging their feet are contributing to delayed redress for our consumers,” CEO Queen Munyai said.
“If we are going to struggle with the legal resources that we have … justice delayed is justice denied.”
The ombud is a nonprofit accredited under the act to mediate disputes in the consumer goods and services sector. Participation is mandatory for all suppliers unless they are already regulated under a separate, recognised industry ombud scheme.
But despite a 19% increase in participation in the past year, many suppliers remain outside the system. Some claim they are not covered under the act, while others say they are regulated elsewhere, interpretations Munyai views as increasingly being used to avoid accountability.
The ombud received claims to the value of more than R1.4bn but could recover only what the law allows: the direct value of a product or service and sometimes incidental costs such as transport. Claims for emotional distress, business losses or reputational harm fall outside the ombud’s jurisdiction.
“We give you the CPA rights. The other rights you have, you have every right to pursue, but it’s not something that we can claim for,” said Munyai.
Public frustration
The mismatch between consumer expectations and what the law allows is contributing to public frustration, especially in online disputes, the single biggest source of complaints in 2024/25.
Ombud Liaquat Soobrathi said they continued to flag online marketplaces and third-party fulfilment services as key pain points.
He said consumers often did not know who sold the product, who to complain to, or who was ultimately responsible for fixing the problem.
“There’s a perception gap. If you’re a platform hosting third parties, you have a vested interest in making sure that third party delivers what they promised.”
While SA has legislation that addresses online transactions, notably the Electronic Communications and Transactions Act, the ombud said the law was outdated and fragmented.
“We need to almost marry the two pieces of legislation and foresee what’s coming. Marketplace conduct, third-party services — we need to make it relevant and robust.”
The ombud said it operated with just 42 staff, an imbalance given the steady annual rise in complaints. Some caseworkers reportedly handle more than 200 cases at a time, stretching resolution timelines.
The average turnaround time for a complaint rose to 53 days in 2024, but the office said this was down to about 41 days after improvements to internal systems and staff allocation.
Still, Munyai said increased participation from businesses was critical to sustaining and expanding capacity.
The ombud is funded by industry on a sliding scale based on company size, with small businesses often exempt. The more participants it has the broader the base from which it can fund operations and the more affordable it becomes for those involved.
“If the industry is regulated, everybody’s playing by the same rules [and] the consumer is guaranteed of an economy that is fair.”
Update: August 7 2025
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