Commerce Commission reports surge in complaints about online sales

Monday, 11 May 2020

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The Commerce Commission is reporting a 'significant increase' in consumer complaints about retailers selling online in the past month.

That included about goods being advertised that were no longer available, claims about delivery timeframes, cancelled orders, general frustration about a lack of communication and extensive delays in getting a refund, processing orders and receiving goods, including click and collect orders.

Commission chair Anna Rawlings said many retailers had had a rush of sales through their existing websites and apps while others had set up online purchasing for the first time.

'We recognise that both retailers and consumers are facing challenging times as a result of Covid-19 restrictions but the online marketplace is not a free for all where anything goes. The same rules prohibiting misleading conduct that apply to physical stores also apply to online retail.

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If you're not told when to expect something, it should arrive in a 'reasonable' timeframe.

“It is important that retailers have good systems in place to manage stock and their website so that they don’t mislead consumers by continuing to advertise and sell items online that are no longer available or are unable to be delivered within a specified timeframe. In the event that they do sell something they can no longer provide, they need to provide a refund to the consumer in a reasonable timeframe,” Rawlings said.

She said retailers must not offer items for sale that they did not reasonably believe they would be able to supply on the terms offered.

They should provide clear and accurate information about the availability of goods and when customers could expect to receive them. If timeframes were not specified for delivery then it was required to be 'reasonable'.

'Goods should arrive within the time frame stated, if that doesn’t happen consumers may be entitled to reject the goods and ask for a full refund.'

Potential courier delays needed to be communicated to customers.

'You can sell products with a future delivery date as long as you are clear about when they will be dispatched and at the time the order is made you reasonably believe that you can fulfil the order on the future delivery date you have promised.

“Restrictions on trading and supply chain disruptions due to the response to Covid-19 can have an impact on the availability of goods, a retailer’s ability to fulfil orders, and delivery timelines for courier companies.

'We encourage consumers to pay attention to any messaging on a website about delivery timeframes before making a purchase. If anything is unclear, contact the retailer directly. If you need something urgently, or within a particular timeframe, check with the retailer that they can meet your timeframe before purchasing.'

She said the Commerce Commission had also received complaints about websites with a .co.nz address that were not actually based in New Zealand,

“We encourage consumers to do their research before using an online store for the first time. Check the ‘contact us’ information on the site for a physical address and phone number and do an internet search to look for comments or reviews from others who have used the website,” Rawlings said.