As the Ombuds office for the Consumer Goods and Services sector in South Africa, we handle an average of 11,200 consumer-related complaints annually. Of these, almost 20% relate to ecommerce transactions gone wrong, making online complaints the single biggest category of complaint by sector.
This is despite ecommerce only making up about five per cent of total retail sales in South Africa. Almost all these complaints relate to items either not being delivered on time (or at all), defective goods, or purchases that do not align with customer expectations. This is partly because of the nature of online shopping where consumers are reliant on the veracity and accuracy of online vendors’ descriptions of the goods and their availability.
South African-based vendors and marketplaces have clear duties and responsibilities with respect to how they may conduct online businesses, as set out in the Electronic Communications and Transactions Act 25 of 2002 (ECTA). This piece of legislation states the basic minimum information that vendors are compelled to provide consumers by law to ensure that consumers are treated transparently and fairly. For the most part, local suppliers take their responsibilities in this regard seriously. Issues mainly arise when the vendor is not locally based. An added difficulty is that the CGSO has no jurisdiction beyond the borders of South Africa. For this reason, our main approach when it comes to handling ecommerce complaints is preventative. Our consumer-awareness initiatives therefore place great emphasis on helping consumers identify fraudulent sites and deceptive practices in a bid to avoid disappointment and financial losses.
It does mean, though, that we are constantly playing catch-up with tactics deployed by rogue operators, many of whom deliberately set out to give consumers a sense of false security by fooling them into thinking they are supporting local vendors. This is not a problem unique to South Africa, and many countries are in the process of amending legislation to provide greater transparency when it comes to the veracity of online vendors, with some going further to include all non-face-to-face transactions, including sales made over the phone, via social media apps or by email.
While the ECTA and the Consumer Protection Act (CPA) provide extensive protection to consumers when it comes to the disclosure and accuracy of information, the fact is that they were published in 2002 and 2008, respectively. The ecommerce landscape has changed substantially in the interim, leaving clear gaps in the legislation when it comes to protecting online consumers. Regional discussions between SADC partners to collaborate on ensuring regional best practices when it comes to transparent and effective protection, fair business practices, advertising and marketing practices, online disclosure, confirmation processes, payment, dispute resolution and redress, privacy and security, and educational and awareness, is a step in the right direction.
Ultimately, consumer protection is a two-way street: the law provides the framework (including the provision of an ombudsman to mediate between suppliers and consumers), but consumers must arm themselves with information to make responsible, informed choices, especially when transacting online.