Online shopping and your rights
Since 2020, e-commerce and online shopping in South Africa has grown by 66%. It’s a thriving industry that capitalized on the inability to leave our homes and engage in some retail therapy. Even though the lockdowns have ended and the pandemic seems to be a thing of the past, online shopping continues to grow. According to FNB, it’s currently estimated that South Africa’s e-commerce market is at R200bn per annum. With the industry being such a hive of activity, there’s bound to be some legal issues that arise for companies and consumers alike.
Consumers are vital to the retail economy, however, there are many times where (some) retailers try to take advantage of a consumer’s urge to buy. This can happen where a consumer is given faulty or defective products, poor service, delayed delivery or the inability to get a refund. The innocent consumer is left feeling forced to accept what they have been sold and check out with a sense of frustration and even anger! Worry not, because that’s where the Consumer Protection Act comes into play.
The CPA gives power to the Consumer Goods and Services Ombud (CGSO) to resolve disputes between consumers and retailers. The CGSO is a free to use service that entitles consumers to exercise their rights in terms of the CPA. Once a dispute has been lodged and an outcome determined, a successful consumer can receive a refund from the retailer.
It’s also interesting to note that the CGSO is alive to the fact that there is an upward trend of ‘fake’ online retailers that exist purely to rob consumers of their hard-earned money. In 2022, the CGSO has confirmed that 25% of the complaints received from consumers related to e-commerce suppliers.
It’s evident that there’s a growing trend of online suppliers attempting to circumvent their obligations to consumers. The CGSO has even named the companies “with the intention to warn consumers to be careful when dealing with these suppliers and to prevent further losses, given the amount of money being paid by consumers to those companies, and their refusal to either refund the money or deliver the goods. They have also failed to cooperate with the Ombud’s office.” There has also been an increase in e-commerce complaints, relating to retailers offering goods at highly discounted prices. “Consumers are quick to make payment in order to benefit from the discount only to discover later that they have been scammed when the goods or services are not delivered or are not of the quality described,” the CGSO said.
How to avoid being scammed
Only use reputable online stores. Check their google and facebook reviews and do your research before purchasing anything. Bad reviews sometimes provide more information than good reviews. In some instances, these fake companies use ghost consumers to write fake positive reviews to further the scam.
Check if the supplier is registered with the CGSO by accessing their website. Consumers can also check if there are previous complaints against the company and how they have been dealt with before.
Always check the company’s Ts and Cs for deliveries and returns.
Check the company’s contact details.
Research the product’s prices. You can also check the legitimacy of the price by comparing the price of the same product on another site.
Check to see if the company has a secure payment provider such as PayFast, PayFlex or Ozow to name a few, that processes its payments.
Always do your research.
Enforcing your rights
If you follow the steps above and still don’t feel that you’ve been sold goods that fit the description or have been provided sub-standard services, you can utilise the processes in the CPA to enforce your rights. The CPA requires that prior to lodging a formal complaint, that consumers first try to settle the dispute with the supplier directly. Practically, this may mean approaching the supplier to explain the issue with the goods or services sold or provided to the consumer. If that avenue is unsuccessful, the consumer is free to lodge a complaint with the CGSO for further relief. Once a complaint has been lodged, the CGSO attempts to resolve the complaint within 60 days. Whilst not providing instantaneous relief, this avenue can provide finality and clarity to both consumers and suppliers regarding their rights and responsibilities. If the consumer still feels aggrieved by the outcome, they are entitled to to refer a complaint to the National Consumer Commission, who will then investigate the issue.
Still unsure of what to do? Our team provides legal support and advice to consumers who have fallen victim to unscrupulous suppliers and want to enforce their rights. If you want to learn more, get in touch with us!