- CCA finds no established internal complaints management systems
- Over 600 cases show lack of opportunities for customers to be heard
- Non-compliance with existing procedures rife
In a startling revelation, the Competition and Consumer Authority (CCA) uncovered a staggering negligence of consumer complaints by businesses across the economy.
According to the latest CCA report, more than 1400 consumer complaints were registered and investigated during the 2022/23 financial year, with over 600 cases highlighting a concerning lack of opportunities for customers to be heard, violating one of the fundamental consumer rights.
The CCA attributes this failure to a lack of established internal complaints management systems or non-compliance with existing procedures.
Shockingly, some businesses, even with complaint management structures in place, demonstrated a significant reluctance to engage with and resolve consumer concerns.
Moreover, a portion of businesses remained completely oblivious to the existence of such complaints, necessitating the CCA’s intervention to advocate for implementation and adherence to comprehensive complaints management procedures at all times.
Highlighting international best practices, the CCA emphasises the significance of establishing business complaints management procedures.
Citing the United Nations Guidelines for Consumer Protection, it underscores the importance of providing consumers with accessible and effective dispute resolution mechanisms, ensuring fair, transparent, and timely solutions without excessive costs or burdens.
“Every business or organisation that deals with consumers will receive complaints, and their timely resolution is crucial for sustainability,” says the report.
“An effective complaints management procedure not only ensures customer satisfaction and retention but also boosts brand reputation and significantly reduces recurring complaints.”