Return goods under spotlight as local online sales grow

May 22, 2020 News

The Competition and Consumer Affairs Commission (CCAC) is advising suppliers that domestic online sales are subject to the Consumer Affairs Act (CAA) 2011.
“The impact of COVID-19 has seen the inevitable shift from in person sales to online sales; to encourage social distancing. The CCAC reminds suppliers that return and refund policies, warranties, and policies in regard to cancellations are still subject to the provisions of the Consumer Affairs Act,” the commission said.
Several businesses, including supermarkets, are taking online orders.
“Suppliers would still be held accountable for breaches of the Consumer Affairs Law. Considering our new modes of transactions, considerations would have to be put in place by the Commission for both consumers and suppliers so that no one is disadvantaged,” the commission warned.
It was pointed out that consumers should still be afforded the period of seven working days to return an item for an exchange or for a refund if the consumer no longer wants the item. It is the responsibility of the consumer to ensure that the item is returned according to the stipulations of the Act: in its original package, and not used or damaged.
“The supplier can charge up to 10% as a restocking fee and the return cost would have to be covered by the consumer in this case. If the item is defective, the cost of the return should be borne by the supplier upon establishing that the item was defective. If the payment was a layaway, the CAA speaks to 75% refunds to consumers.”
The Commission said it is also imploring suppliers to be scrupulous at this time to consumers who have booked events, which had to be cancelled due to the pandemic. Suppliers are asked to offer consumers their correct refunds.
“The Commission continues to appeal to suppliers to put your countrymen/people over excessive profit… it is morally wrong to take advantage of consumers during any national emergency, in this case, that of a public health crisis.”
The CCAC was established in 2006 and became fully operational in 2010. The Commission functions objectively in executing the laws governing two acts, namely the Competition and Fair- Trading Act N0. 11, 2006 (CFTA) and the Consumer Affairs Act No. 13 2011 (CAA).
The Commission is an agency of the Ministry of Business.

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