SA's consumer laws need to be updated to protect online shoppers

As our use of online shopping platforms rises, it's become evident that South Africa's laws meant to protect consumers are outdated when it comes to e-commerce.

The findings are contained in the latest annual report by the office of the Consumer Goods and Services Ombud (CGSO). (Click here to see the summary)

For the fourth consecutive year (2023-24), online transactions accounted for the greatest number of consumer complaints, the Ombud says.

"While the Electronic Communications and Transactions Act (ECTA) and the Consumer Protection Act (CPA) provide extensive protection to consumers when it comes to disclosure and accuracy of information, the fact is that they were published in 2002 and 2008, respectively, and much has changed in the interim."

Consumer Goods and Services Ombud

Stephen Grootes finds out more from Ombud Lee Soobrathi on The Money Show.
Soobrathi says the problem comes in mainly when it comes to making online purchases in other countries or continents.

"Looking at recent media reports... it's quite apparent that e-commerce, specifically when it comes to cross-border, is becoming a bigger and bigger issue."

"We have quite good consumer laws but, to a certain degree they only protect consumers within the borders of South Africa. The big question that comes in is when you purchase from foreign countries."

Lee Soobrathi, Consumer Goods & Services Ombud

Soobrathi says that while the ultimate goal is consumer protection, this becomes difficult if you can't regulate the provider, .

What the situation requires is for regulators, ombuds, and various associations to come together to discuss how to address this because it is just going to become a bigger issue for consumers when they want to exercise their rights, he says.

"You'll get a certain type of consumer that's satisfied because they understand the terms and conditions attached to that product, but on the other hand you'll get those that are dissatisfied with maybe a size or a colour."

"Within SA we have direct jurisdiction - if a consumer receives goods that are not what they expected or ordered, they have a right to return those goods... The bigger question comes when these entities do not exist in SA - who do you send the goods to, who pays for the bill for sending it back... and in that sense it does become quite limited."

Lee Soobrathi, Consumer Goods & Services Ombud