Car complaints body lacks roadworthy stamp
Code of conduct must align with Consumer Protection Act
COMPLAINTS about the car industry regularly top the list of readers’ gripes.
The owners of cars — from luxury sedans to runabouts with four previous owners — usually get pushed from pillar to post when things go wrong.
It does not help that the motor industry ombudsman of South Africa still lacks the jurisdiction to tackle the industry as a whole. But that is due to change.
The draft automotive industry code of conduct, which was revised and published for public comment last month for the third time, could soon be accredited under the Consumer Protection Act.
If so, it will authorise the ombudsman to mediate complaints across the entire motor industry and not only with its members, giving it more teeth.
But, as the nongovernmental South African National Consumer Union (Sancu) warns, it will only work if the code is aligned with the act. The union has submitted more than 20 changes it wants made to the code. “The latest draft is a considerable improvement on its predecessor,” said Sancu vicechairman Clif Johnston.
“But it still fails to provide an adequate level of consumer protection and continues to violate consumer rights entrenched in the act.”
The Power Report asked ombudsman Johan van Vreden: Who drew up the code — was a consumer representative involved?
A drafting committee, made up of representatives from various sectors of the motor industry and coordinated by the ombudsman, drew up the drafts. The National Consumer Commission represented consumers. What were the challenges of finalising this revised code?
This document came to fruition after four long years in which the ombudsman had to work very hard to keep a very diverse and individualistic industry together to get this off the ground. Our biggest goal in the short term is to gain accreditation for the code to assist consumers with complaints in all the sectors of the industry. The proposed code says a consumer must refer a dispute to your office within 10 days of it not being resolved. The Consumer Protection Act allows for a three-year period and other codes allow for 30 months. Why the restriction?
It is in the consumer’s interest that resolution takes place as soon as possible. The act makes provision for a six-month warranty on any product — the sooner a case is dealt with the better. Cases differ in complexity and some will take longer than others to process. A complaint will be investigated if older, but it will be more difficult to assist consumers if they fail to register a complaint in time. The code says if there is a hearing, the parties must attend at their own expense. And if an interpreter is required, the costs must be borne by the party requesting it. It also says either party is entitled to a legal representative. Aren’t these provisions skewed in favour of the supplier?
As a nonprofit organisation, the ombudsman cannot be expected to carry the costs.
Shouldn’t the industry bear these costs?
I cannot speak for the industry. However, the ombudsman is there to make sure nobody is discriminated against. Parties will always have the benefit of the ombudsman’s in-depth knowledge of motoring matters. Your code specifically forbids a consumer from approaching the media about a dispute from the time a complaint is filed to the time it is resolved. Why?
This may or may not be subject to revision later. However, I am of the opinion that while an investigation is being carried out, the case should be considered sub judice. Who gets to decide whether a car has a defect that would warrant replacement or refund?
We hold the view that when a component of a car becomes unserviceable and is still covered by the compulsory warranty conditions of the Consumer Protection Act, the restitution ordered by the act shall be carried out. By implication, this results in the component
becoming the “goods”. A motor vehicle is the sum of its components. I’m not sure everyone would agree that consumers buy a collection of components. Section 56 of the act — implied warranty of quality — does not distinguish between goods and components and leaves the choice of “replace, repair or refund” to the consumer.
I cannot comment on your interpretation of these sections. How many complaints does the ombudsman get annually and what is the most common complaint?
About 25 000 first-contact calls were received last year, which resulted in 6 000 cases logged and dealt with. Poor service still heads the statistics. How many cases are resolved in favour of consumers?
Currently, about 45% in favour of the consumer and 55% in favour of motor dealers. Do most complaints relate to new or second-hand cars?
The ratio of pre-owned to new car complaints is more or less eight to one. What are the biggest challenges with consumer complaints?
Inadequate information provided by the parties. In addition, consumers are requested to follow up on their cases at certain intervals to assist the ombudsman in reaching a conclusion. Why should consumers have to follow up on cases? Isn’t that the ombudsman’s job?
Due to financial restraints, we are not able to follow up on all cases. However, our systems do have mechanisms to flag cases that have dragged on. Also, bear in mind that this is a free service to consumers. ý For more visit miosa.co.za ý Tune into PowerFM’s ‘Power Breakfast’ at 8.50am tomorrow to hear more from Megan