Consumer rights protection being outpaced by digital age
CONSUMERS ARE being encouraged to exercise caution when shopping online as technological advances in the digital age have facilitated a rapid growth of the global e-commerce sector, leaving current consumer protection legislation lagging behind.
The Consumer Affairs Commission (CAC) says concerns about the lack of available avenues for redress are growing among the 150 member countries of Consumers International – the UK-based umbrella organisation of the global consumer protection movement.
The CAC notes that although online shopping is a small part of the digital economy, it is growing locally and requires increased attention in getting shoppers to be more vigilant, especially when sharing personal information online.
The CAC explains that digital innovation is consumer-led and industry-driven, so regulators are struggling to keep pace with machines designed to think and make decisions in a more efficient way than humans – artificial intelligence (AI). The commission said that integral to AI is the Internet of things – the linking of various electronic devices that commu- nicate with each other or operate remotely and semi-independently without the human interaction – which is emerging as an integral part of daily life.
Chief executive officer of the CAC, Dolsie
Allen, said the new dispensation, however, offers consumers convenience, immediacy as well as excellent price points for goods.
“However, the challenge is that various platforms on the Internet use consumer behaviour as a monetised service or product and sell this information to third parties without any opportunity by the consumer to opt out or disagree with this exchange,” she said.
Allen said consumers can feel relieved that most of the established retail shopping sites have a fairly secure platform favourable to consumer privacy rights and e-commerce activities so consumers, therefore, need to carefully select the sites they visit.
Allen is calling on consumers to do their due diligence when shopping online. She said that while some protection is provided under the 2007 Electronic Transaction Act (ETA), a former minister of commerce had acknowledged that “it is in need of urgent review” in order to meet the global rise of doing business online in banking, trade and communication.
In fact, Allen said the primary rights legislation, which underpins Sections 27-32 of the ETA and the Consumer Protection Act (2012) CPA, is also in need of updating.
“As we speak, a review is being done on several clauses in our Consumer Protection Act, and we are going to be moving towards some level of amendment to the act,” she pointed out.