Does Your Hair Salon Need to Register with the CGSO?

Many salon owners are surprised to learn that registration with the Consumer Goods & Services Ombud (CGSO) is not optional. But the good news is that you might not have to pay anything.

The CGSO is the industry ombud established under the Consumer Protection Act (CPA). Its role is to help resolve disputes between consumers and businesses without the need for costly legal action.

If your salon provides services to consumers or sells retail products, chances are you are required to register, comply with the Code of Conduct and maintain an internal complaints process.

In most cases, yes.

Hair salons provide services directly to consumers and often sell professional and retail haircare products. This means they fall within the consumer goods and services industry.

Apart from being a legal requirement for qualifying businesses, registration shows that your salon is committed to fair business practices and consumer protection. Being registered also means you have access to an independent dispute resolution process, free guidance on CPA compliance and access to educational resources and updates. But most of all you have access to a recognized complaints process that can help resolve disputes before they escalate. These benefits can protect both your reputation and your business.

Registration is not based on whether you’ve had complaints. The requirement is based on whether your business falls within the scope of the Consumer Goods and Services Industry Code. Even businesses with an excellent customer service record are expected to register if they qualify.

The CGSO charges an annual participation fee based on your annual turnover. The good news for many smaller salons is that businesses with an annual turnover of R1 million or less currently pay no annual participation fee, although registration is still required. Businesses above this threshold pay according to the applicable turnover band.

According to the CGSO, qualifying businesses that fail to register are in contravention of the Industry Code and legal action can be taken against you to force compliance.

Running a successful salon is about more than delivering beautiful hair. It also means staying compliant with the laws that govern your business. Registering with the CGSO is one of those compliance requirements that many salon owners overlook. Taking the time to register not only helps you meet your legal obligations but also shows your clients that your business is committed to professionalism, accountability and fair consumer practices.

Compliance builds trust—and trust builds loyal clients.

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