South Africa's Telecommunication Sector Tops Consumer Complaints List

A recent report from the Consumer Goods and Services Ombud’s (CGSO) newsletter has put the spotlight on the telecommunication and satellite services sector as the leading source of consumer complaints in South Africa for the period between September and November 2023. Eclipsing even online transactions, which traditionally hold a high complaint rate, the telecommunication sector—which includes heavyweights such as Vodacom, MTN, and Telkom—has been facing increased scrutiny from dissatisfied customers.

The telecommunication and satellite services sector garnered a total of 437 complaints in just three months, only narrowly outpacing online transaction complaints, which amounted to 404. This indicates a significant level of consumer unrest in the industry, with issues ranging from contracts and subscriptions to data usage and the installation process. Phone-related complaints also constituted a substantial portion, primarily concerning defective or incorrect handsets.

With a 5% increase in overall complaints compared to the same period last year, the CGSO, which plays a crucial role in mediating between unhappy consumers and businesses, reported receiving 3,002 complaints between September to November 2023. Despite the rise in complaints, the CGSO closed 16% fewer cases within the same period compared to the previous year, a total of 2,501 cases. This is partially due to new quality assurance measures the CGSO implemented, which necessitate an additional review step before cases are closed. This commitment to rigorous processing has understandably lengthened the average time of case closure from 36 to 39 days.

The CGSO’s efforts, while thorough, bore fruit for consumers, with 67% of eligible complaints resolved in favour of the complainant. This level of resolution equated to R3.05 million recovered for complainants, though lower than the R4.03 million recovered in the previous year. The variation in the amount recovered can be partly attributed to the specific nature of the cases at hand, as highlighted by the refunds facilitated by the CGSO, including one notable instance where a complainant was refunded R100,682 for a faulty generator.

Even though the telecommunications sector has experienced the most complaints, it is worth noting the CGSO’s role in expanding its monitoring activities across various sectors. With the addition of categories such as "Solar systems, inverters, and batteries," the CGSO continues to adapt to the evolving consumer market landscape while addressing the complexity and diversity of complaints submitted by the South African public.