Code of conduct for suppliers coming

Rob Davies (Image: GCIS)

The code aims to set minimum standards of conduct for the sector in its dealings with consumers, promote fair business practices and protect consumers.

The National Consumer Commission has been gathering public comment on the proposed industry code of conduct and ombudsman scheme submitted to it by the Consumer Goods Council of SA.

Once approved by Davies the code will be binding on all suppliers in the consumer goods field, except those explicitly excluded. It deals extensively with the issue of product recalls and how this should be handled by the suppliers and includes specific guidelines for aerosol products.

The commission's senior legal adviser Jeremiah Modiba said the body's job was to ensure the proposed code of conduct and ombudsman scheme complied with the Consumer Protection Act and that account was taken of the views of affected parties. The council - an industry body - had applied for accreditation to the commission, which will submit the application, with the recommendation, to Davies.

Modiba said that once a code had been accredited, it would have the status of a regulation.

Dispute resolution

Leana Engelbrecht, an associate at Cliffe Dekker Hofmeyr specialising in competition and regulatory practice, said that the ombudsman scheme specifically provided for an alternative dispute resolution mechanism to deal with complaints related to alleged transgressions of the Consumer Protection Act and/or the provisions of the code of conduct within the consumer goods and services industry.

This proposed mechanism, she said, was in line with the council's existing voluntary dispute resolution procedures. The council has about 11,000 members in the retail, wholesale and manufacturing sectors. Engelbrecht said the proposed code of conduct provided for industry standards, in line with those in existence for voluntary compliance by suppliers within the consumer goods and services industry.

"These standards are extensive and set out additional compliance imperatives relating to, inter alia, labelling of products, display of price, liability for damages caused by goods, sales records and grey market goods, as well as very specific provisions relating to the marketing and sale of aerosol products," she said.

About two months ago, the council launched the voluntary Consumer Goods and Services Ombud in a bid to promote the rights of consumers, provide guidelines for the consumer goods and services industry on the minimum standards of conduct and resolve disputes. At the time, council chief executive Gwarega Mangozhe said the aim of the code of conduct was to raise the standard of conduct in the consumer goods and services industry "without endangering the vitality and growth of business".

"We believe that through offering clear guidelines to suppliers, educating consumers on their rights and ensuring that disputes are quickly resolved with effective resolutions, we can contribute to sustainable growth in the sector," he said.

Source: Business Day via I-Net Bridge