Draft Consumer Goods and Services Industry Code of Conduct Published

Posted 21 May 2025 Written by Acts Online
Category Regulatory Compliance

Brought to you by SA Accounting Academy: The Department of Trade, Industry and Competition (dtic) has published a draft industry code to regulate conduct and dispute resolution mechanisms within the consumer goods and services sector.

In terms of section 82 of the Consumer Protection Act, No. 68 of 2008 (CPA), the dtic has issued the draft Consumer Goods and Services Industry Code of Conduct (“the Draft Code”) for public comment. The notice was published as Government Notice 6178 in Government Gazette 52604. The Draft Code is intended to regulate interactions between providers of consumer goods and services, defined as “Participants”, and consumers.

The primary objectives of the Draft Code include:

  • Establishing minimum standards of conduct for industry participants when engaging with consumers;
  • Enhancing consumer rights beyond the baseline protections provided in the CPA;
  • Formalising the Consumer Goods and Services Ombud (CGSO) as the alternative dispute resolution (ADR) mechanism for the industry; and
  • Providing a framework for the CGSO to resolve disputes arising between consumers and the industry.

Once prescribed, the Code will be enforceable by the CGSO. In terms of section 82(8) of the CPA, a failure to comply with a prescribed industry code amounts to a contravention of the Act. The Draft Code specifies that any provision found to be inconsistent with the CPA will be invalid to the extent of that inconsistency.

The deadline for the public to provide written inputs on the Draft Code is 23 June 2025.

Click here to download the 34-page Gazetted Notice.

What this means for you, your business, or your clients

  • For yourself: Professional advisors must familiarise themselves with the proposed conduct standards to ensure their own service delivery, if falling under the definition of a ‘Participant’, remains compliant with the CPA.
  • For your business: Entities in the retail and services sectors must evaluate their current dispute resolution processes against the CGSO’s proposed terms of reference to ensure alignment before the Code becomes enforceable.
  • For your clients: Advise clients in the consumer goods and services industry to review the Draft Code and submit comments by 23 June 2025, specifically regarding the operational feasibility of the proposed minimum standards and the mandatory nature of the CGSO jurisdiction.

Originally published at https://accountingacademy.co.za/news/read/cgso-draft-consumer-goods-and-services-industry-code-of-conduct

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