The Consumer Goods and Service Ombudsman (the Ombud) was
established by the Consumer Goods and Services Industry Code of
Conduct (the Code). Until recently, there has been uncertainty as
to whether businesses were obliged to subscribe to the Code and pay
annual fees that fund the Ombud. The position was recently
clarified when the High Court in Pretoria declared that mandatory
participation and payment of fees by all eligible businesses is
lawful.
The Court's decision
The Ombud brought the application for declaratory relief,
claiming industry suppliers were not complying with the provisions
of the Code. The application was opposed by Voltex and Astral.
Voltex claimed that section 82 of the Consumer Protection Act, 2008
(CPA) did not empower the Ombud to insist on compulsory
participation or payment of fees, but that participation was
voluntary. Further, Astral submitted that the Code was not only
ultra vires, but that it was unconstitutional and unlawful as
