A number of signage companies have received notices from the Motor Industry Ombudsman of South Africa (MIOSA), informing them that they need to pay an annual fee to MIOSA.
According to the South African Automotive Industry Code of Conduct on MIOSA’s website, the Automotive Industry for the purposes of this Code is defined as: ‘importers, distributors, manufacturers, retailers, franchisors, franchisees, suppliers, and intermediaries who import, distribute, produce, retail or supply passenger, recreational, agricultural, industrial, or commercial vehicles, including but not limited to passenger vehicles, trucks, motor cycles, quad cycles, whether self-propelled or motor an internal combustion propelled engine for a boat, or import, distribute, manufacture, retail or supply any completed components and/or accessories to such vehicles, and/or renders a related repair or replacement service to consumers in respect of such vehicles; and trailers, and anyone who modifies, converts or adapts vehicles’.
One signage business owner, who received notices and a summons from MIOSA, and who wanted to remain anonymous, said, ‘I fail to see how a sign company, that does branding on clients’ vehicles, falls into the above definition, since whatever we do to these vehicles does not affect the performance or safety of these vehicles in any meaningful way. In fact, the vehicle is merely a substrate, as far as I am concerned.’
The owner has consulted with an attorney, and an advocate, who both read the emails he received and the definition of the Automotive Industry in the Code of Conduct. ‘Both seem to agree with me that this is nothing more than an attempt at intimidation to pay dues to another government institution, now scrambling for funds,’ he said.
Sign Africa received the following comments from MIOSA’s Johan van Vreden:
1. What are the reason/s for signage companies having to pay fees to MIOSA and how do the signage companies fall within the Code of Conduct’s definition of the Automotive Industry?
‘If signage is applied to vehicles, it is considered an accessory that modifies and/or adapts vehicles that may change the purpose of the vehicle ie, promotional, delivery etc. During application or removal of signage, damage may occur that can result in a dispute.’
2. Are signage companies legally required to pay these fees?
‘Based on the definition of the Gazetted South African Automotive Industry Code of Conduct (Code, which is a Regulation of the Consumer Protection Act No. 68 of 2008 (CPA), and which includes a) accessories, b) modifies and c) adapt, including the incorporation of purpose-specific signage, which is included in the regulation, signage companies who modify and/or adapt vehicles, trucks, motorcycles, quad cycles and trailers must comply with the Regulation.’
3. What are the legal implications for signage companies not paying fees to MIOSA?
‘Contributions payable to the MIOSA are a statutory requirement for all automotive industry participants. Therefore, every participant (company) is liable for the contribution outstanding since date of accreditation (2015) or when the motor industry participant started trading within the automotive industry. Should such businesses not record their business information and pay the legally required contribution, those businesses will be in contravention of the Consumer Protection Act.’
4. In terms of our readers receiving invoices from the ombudsman for two-year memberships, is it compulsory for signage companies to be members of the Motoring Ombudsman? And has this been gazetted/brought into law?
‘The MIOSA is not an organisation with voluntary memberships. As part of the automotive and related industries, all participants within the automotive and related industries (industry participant) are obliged by the statutory measures to pay a contribution to the MIOSA.’
5. If a signage company already pays towards the Consumer Goods and Services Ombudsman (CGSO), are they also required to pay fees to the Motor Industry Ombudsman?
‘In the event that a signage company provides services within the automotive industry, the signage company is liable to fulfil its financial obligations by making the requisite contributions to the MIOSA.’
6. Please share any other information that will help the signage companies understand this fee structure.
‘Should a signage company encounter a complaint from a dissatisfied consumer regarding the services rendered on their vehicle, and if attempts to address the issue prove ineffective, we recommend directing the consumer to the MIOSA’s official website. On our website, consumers have the option to formally submit their grievances in writing. Subsequently, we will forward the complaint to the signage company involved in the dispute, providing them (with) the opportunity to respond and present their evidence. Following this, our dedicated case managers will diligently investigate the matter and arrive at a final resolution,’ concluded van Vreden.
The National Consumer Commission (NCC) was contacted for comment. They stated that a meeting between themselves and MIOSA needs to be set up, to reach a common understanding on the matter, and determine if other bodies need to provide input. Sign Africa will update its readers once the meeting has taken place.
If Printing SA members have concerns about this topic, they can reach out to Khanyi Ntanzi at +27 11 287 1160 or can email kntanzi@printingsa.org.
