While online retailers are quick to point out the convenience of this kind of shopping, statistics recently released by the Consumer Goods and Services Ombud (CGSO) show that online purchasing is not without its pitfalls.
Since Monday 1 March last year to Monday 30 May this year, CGSO has received 2 600 complaints related to online transactions. Of these complaints, 1 745 were related to “not on time or reasonable”, 187 to “not as per order or requirements” and 116 to “not provided in time”. Forty-three complainants claimed they had been overcharged, 40 said the product or service received was “not as per the advert” and 31 said the goods were “not of expected quality”. Under the category “fraud”, 27 complaints were lodged.
Ouma Ramaru, Media Liaison, Training and Outreach Manager for CGSO, says the Covid-19 pandemic forced businesses to move to trading online and consumers to also transact online.
“Online platforms became more popular and a preferred way during hard lockdown. Businesses had to have a strategy that would help them to sustain and continue to make profit, but we must admit that no one was ready or prepared for Covid-19.”
Ramaru says, as a result, the demand was high but supply was not sufficient.
“Businesses were advertising their goods and services more and they could not supply as promised,” he says.
From Sunday 1 March 2020 to Sunday 28 February 2021, CGSO received a total of 14 438 cases in that period and 2 321 (16%) related to non delivery, late delivery, poor product quality, misleading advertisement, cancellations, no refunds, bait marketing and unfair terms.
In the past year to date, CGSO has published alerts against five online stores – Mr Shopper, Anna Eleven, Wiegenkind Boutique, Online AT Liepies and Sassy Heels – which advertise and accept consumers money but then allegedly fail to deliver.
“When being contacted, they make endless promises which turn out not to be honoured,” says Ramaru.
When a business accepts consumers’ money and does not provide or deliver, it is a violation of Section 19 of the Consumer Protection Act.
“It is always advisable to attempt to obtain redress. As a consumer, those are your rights. Complaints are inevitable but reputable suppliers will always respond to and provide redress to their customers.”
Unrealistic low deals advertised online are the biggest red flag, he says.
“Stick to reputable retailers and be wary of unrealistically low deals. Consumers are further advised to do their homework before parting with their hard earned monies by checking with online communities before purchasing anything from any online sites.”
Claremont police recently shared that, compared to last year’s figures, the station had experienced a 29% increase in reported fraud.
A media statement released by the Claremont police and the local Community Policing Forum (CPF) earlier this month stated that an analysis of fraud cases opened at the station found that 40% were online purchasing and 40% were online banking or calls from imposters claiming to be bank representatives (“Sharp increase in online fraud”, People’s Post, 31 May).
Claremont police and CPF provides this advice on how residents can protect themselves from online fraud:
- Properly verify that the company you are dealing with online does exist. Check email addresses, call the head office, verbally confirm banking details before making payment, seek references and legitimate reviews.
- Do not ever provide personal information, bank account information, or online banking login details to anyone. Your bank will not request this from you.
- If you notice fraudulent or suspicious activity on your bank account, go into a branch to query it. Do not try and resolve it online.
- Do not transact with your bank using automated messaging systems or by clicking on links in emails. Be wary of false urgency. Scammers sometimes pressurise the potential victim, convincing you to act immediately.
- If you lack confidence or experience with online transacting, seek assistance from a trusted friend or family member.
- Do not ever assume the website or bank representative you are dealing with is legitimate. Be absolutely 100% sure before you proceed.
