The Consumer Goods and Services Ombudsman (CGSO) has warned spaza shops against imposing additional fees on customers who pay with bank cards, stating that such practices are illegal. This comes after residents in Soweto raised concerns over excessive card transaction fees, with some shops charging up to R5 extra per purchase.
CGSO Ombud, Lee Soobrathi, confirmed that businesses cannot legally apply surcharges for card payments under the Consumer Protection Act (CPA). Soobrathi emphasized that the advertised price of a product must remain the same, regardless of payment method.
Residents Report Financial Exploitation
Soweto community members have accused local spaza shops of financial exploitation, prompting calls for government intervention. Many consumers claim they are unfairly penalized for using cards instead of cash, despite banking regulations prohibiting such surcharges.
Soobrathi clarified that the Payment Association of South Africa’s guidelines explicitly forbid merchants from adding extra fees for card transactions. “If a product is advertised for R10, a customer should not be charged R12 just because they’re paying by card,” he stated.
How Consumers Can Report Violations
The CGSO has urged affected consumers to report violations, as repeated complaints can lead to investigations by the National Consumer Commission (NCC). Soobrathi explained that the CGSO acts as a mediator in disputes, while the NCC has the authority to penalize non-compliant businesses.
“Suppliers engaging in prohibited conduct can be brought to task,” he said, encouraging shoppers to stand up for their rights.
Next Steps for Affected Shoppers
Residents who encounter illegal surcharges can lodge complaints directly with the CGSO or the NCC. The ombudsman’s office will assess trends and work with regulators to enforce compliance.
As card payments become more common in informal retail, this ruling serves as a critical reminder that consumer rights must be upheld. For now, Soweto shoppers are advised to challenge any unauthorized fees and report offending retailers.
