• Fri. Jan 21st, 2022

DMC News

We Report As It Is

These six business types are more likely to rip off consumers

By

Oct 29, 2021

Consumers need to exercise special caution when buying goods and hiring the services of certain types of businesses to make sure they don’t grab your cash and run the Consumer Goods and Services Ombudsman warned on Friday. 

The CGSO said it had gleaned its insight into the behaviour of the unscrupulous owners of certain types of businesses from its dealings with operators in different sectors over the years.

“Certain suppliers operating specific types of businesses engage in unfair business practices and tend to not cooperate with our office to resolve complaints lodged against them,” the CGSO said.

“These businesses tend to accept money from their customers but fail to deliver the goods or deliver inferior quality goods or services,” the CGSO said,

 An analysis of the sectors and type of complaints showed that small and micro-businesses in the following sectors tended to flout the CPA and do not address consumer complaints lodged against them:

Tombstone Manufacturers Home Renovations Building contractors Courier ServicesFurniture Movers Online Stores operating mainly on Facebook and Instagram – specifically for branded clothing, sneakers and hair products like wigs.                                                                                           

Consumer warning to ‘do due diligence’ before buying

Ombudsman, Magauta Mphahlele, said consumers have the right to receive goods and services that they have paid for.   

“Too many suppliers within these sectors consistently display a lack of fair and honest dealings with consumers, and as a result, tarnish the reputation of their entire industry. These rogue suppliers accept money from customers and do not deliver or render the services to the promised quality standards,” she said.       

“In other instances, goods delivered will be incorrect, or the final product will be of inferior quality. They are also notorious for not making good on their mistakes. After several unsuccessful attempts to seek assistance from the suppliers, consumers then turn to the ombud for redress,” Mphahlele said. She cautioned consumers to do extensive due diligence when engaging with suppliers in these sectors.                                    

“This includes doing an online search to check what other consumers have said about them, asking for references and checking them, and choosing suppliers that belong to professional bodies. Small and micro-enterprises are an essential component of our economy, but it pays to check their credentials before parting with your hard-earned cash,” Mphahlele said.

She encouraged small businesses to sign up with the CGSO so that they can benefit from guidance and support in complying with the CPA. They can sign up via the ombudsman’s website www.cgso.org.za or contact Mr Katlego Lehabe at Katlego@cgso.org.za

Leave a Reply

Your email address will not be published. Required fields are marked *