Online shopping may be convenient, but there are pitfalls for the unwary consumer. This is especially true when transacting with online platforms that host third-party suppliers, commonly referred to as a ‘marketplace’.
Fortunately, the Consumer Protection Act 68 of 2008 (CPA) provides some protection against poor online trading practices. This protection is important for buyers.
What to ask before transacting with an online marketplace
In particular, consumers should pay close attention when buying e-vouchers or when purchasing items from online marketplaces.
When doing online shopping, consumers should consider several key questions:
- Are the goods owned by a third party, or does the platform host and market the goods that are being sold?
- Who will be responsible for delivering the goods purchased?
- Who will provide the receipt as proof of purchase, which is necessary for claiming a warranty on the goods?
- Will the platform assist with a complaint about non-delivery, product returns or when goods become defective?
- Do the terms and conditions protect the consumer’s rights to redress?
- Does the platform participate in our scheme? Participation will help expedite any unresolved complaint.
Remember to read the terms and conditions before proceeding with the sale. Also, take time to understand how the platform addresses the above questions.
Understanding e-vouchers under the CPA
The CPA provides specific protections for gift vouchers and similar products under Section 63. This section applies when a supplier accepts payment in exchange for a prepaid certificate, card, credit, voucher or similar device.
The supplier also agrees, either expressly or implicitly, to provide goods or services to the person who later presents the voucher. This agreement is valid up to the value represented by the voucher. However, this provision no longer applies once the voucher’s full value has been used for goods, services or access to services.
According to Section 63(2), a prepaid voucher does not expire until either its full value is redeemed or three years have passed since the date of issue. The only exception is if the supplier offers a longer validity period.
What to ask before purchasing a voucher
Section 63(3) makes it clear that the money paid by the consumer in exchange for the voucher remains the property of the voucher bearer. This remains true until the supplier fully redeems the voucher through goods, services or access to services.
When buying a voucher, consumers should ask the following questions:
- Is the voucher valid for at least three years, as required by the CPA?
- What do the terms and conditions say about non-performance by the supplier—for example, failure to deliver the goods or services?
- Do the terms and conditions protect your consumer rights in the event of a dispute?
- Does the platform work with us to resolve complaints that remain unresolved?
Always ensure that you fully understand how the voucher works to avoid disappointment. If anything is unclear, request clarity from the service provider before proceeding.
Lee Soobrathi | Ombudsman | Consumer Goods and Services Ombudsman (CGSO) | mail me |