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Personal Finance | Online purchases remain biggest driver of Consumer Ombud complaints

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While e-commerce now accounts for more than a third of all the complaints received by the CGSO, the nature of complaints has not changed in 10 years.
While e-commerce now accounts for more than a third of all the complaints received by the CGSO, the nature of complaints has not changed in 10 years.
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PERSONAL FINANCE


According to the latest Consumer Goods and Services Ombud (CGSO) annual report, more than 10 000 complaints were processed this year and R12.9 million recovered for consumers.

Of these, more than a third were related to e-commerce. This has been a rising trend since the increase in online commerce during the Covid-19 pandemic.

The report has raised concerns about complaints relating to online marketplaces. These are platforms where third-party sellers can advertise and offer goods and services to customers.

The report says:

Typically, third-party sellers making use of an established marketplace’s virtual presence, agree to a standard set of terms and conditions. This includes the service terms relating to the facilitation of the sale of their products to customers by the marketplace provider.

However, the consumer is often only aware that they are dealing with a third party when something goes wrong. They are then directed, by the marketplace to the actual seller, who is ultimately responsible for the product descriptions, returns and refunds.

READ: Are you more likely to buy clothing or groceries online? New report outlines SA's spending habits

According to the CGSO, virtual marketplace providers also have a responsibility to ensure that only legitimate and compliant third-party suppliers are allowed to trade on their platforms. They are obliged to remove them from the platform for transgressing consumer rights.

This includes ensuring that third-party suppliers subscribe to the industry code of conduct.

CGSO CEO Queen Munyai says that, while e-commerce now accounts for more than a third of all the complaints received by her office, the nature of complaints has not changed in 10 years.

She said:

Our case files – all 70 000-plus – tell pretty much the same tales of disappointment, crossed wires, rude staff, dismissive managers and suppliers who disappear, never to be seen again.

She notes that many of the complaints are also a reflection of the social ills, including an unregistered supplier selling guns on lay-by.

“Sadly, the customer passed away before he could make the last payment. And when his widow went to ask for a refund of the money paid to date, as was her right under the law, she was ruthlessly dismissed and banished from their premises.”

Munyai added:

She and millions like her have little to no recourse when dealing with suppliers who are not registered participants in the ombud scheme, purely because they are aware that the resources to tackle individual cases of fraud and bad practice are not there.

If the suppliers are registered, the consumers have a much better chance of getting protection under the Consumer Protection Act (CPA).

READ: The smart guide to international shopping online

Munyai cites an example of a complainant who wanted to return a mattress after five months, and the supplier wanted to deduct money for wear-and-tear.

“This is not allowed in terms of the CPA. It is clear that goods that fail within six months, as a result of a manufacturer’s defect, must be refunded, repaired or replaced, according to the complainant’s wishes. Once we pointed this out, the complainant was given a full refund.”

Munyai adds that the consumers also have a responsibility to check their invoices against the purchases in case of a dispute. She cites the example of a complainant who tried to return faulty batteries purchased as backup power during load shedding. They only discovered then that the invoice reflected a different brand of batteries to the faulty ones he wanted to return: “In cases such as this, it is very difficult to reach a decision on the evidence or a balance of probabilities.

“Complaints such as this end up being dismissed in accordance with our terms of reference.”

Consumers who wish to lodge a complaint can download the CGSO mobile complaints app from the Google Play or App Store. It’s free and allows users to upload and track the status of complaints, as well as submit supporting documents, such as photos and invoices.

Alternatively, they can call 0860 000 272, email info@cgso.org.za or visit www.cgso.org.za to submit a claim.


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