Online transactions are becoming more and more popular, with many consumers opting to purchase online as opposed to going in-store due to their busy lifestyles and the convenience of shopping online. Online retailers need to ensure that these online transactions comply with the Electronic Communications and Transactions Act (ECTA) and the Consumer Protection Act (CPA). In this article, I will discuss the legal requirements which online retailers need to adhere to in order to ensure that the consumer cannot exercise their right to cancel the transaction within the 7 (seven) day cooling-off period allowed for under Section 44 of ECTA.
Section 43 of ECTA provides that an online retailer must ensure that certain information is included on its website, including its full name and legal status, physical address and telephone number, web site address and e-mail address, suitable description of the goods or services being sold so as to enable a consumer to make an informed decision, the full price of the goods or services, including transport costs, taxes and any other costs, the terms of the agreement of sale e.g. guarantees or warranties, the retailers return, exchange and refund policy and the time within which the goods will be dispatched or delivered or within which the services will be rendered.
Furthermore, the consumer must be given the opportunity to review the entire transaction, to correct any mistakes and to withdraw from the transaction, before concluding any order. Failure to comply with the aforementioned will entitle the
consumer to cancel the transaction within 14 days of receiving the goods or services
under the transaction.
In addition, the consumer has a 7-day cooling-off period i.e. may cancel the transaction within 7 days of receipt of such goods and the online retailer may only levy a charge on the consumer for the direct cost of returning the goods in this instance. However, the cooling-off period does not apply to certain transactions, including but not limited to transactions that were for financial services, online auctions, food or beverages and consumables, special order or personalised goods, or for the provision of accommodation, transport or leisure services that are entered into for a specific date or period of time.
The fact that goods are purchased online does not exempt the online retailer from their liabilities in terms of the CPA. Online shoppers retain the right, in terms of Section 55 of the CPA, to receive goods which are of good quality, free of any defects and are reasonably suited for the intended purpose (amongst other requirements), and where the goods fail to comply with Section 55, Section 56 entitles the consumer to request a refund, replacement or repair (at his/her discretion) within six months from the date of delivery. Furthermore, online retailers, producers or importers, or distributors liability in terms of Section 61 of the CPA would still be in effect despite having been sold online, meaning that everyone in the supply chain can be held jointly and severally liable for any harm suffered by any person as a result of goods being unsafe, having a product failure, defect or hazard or where there were inadequate instructions or warnings pertaining to any potential hazard which may arise as a result of the use of any goods.
Online retailers must provide online shoppers with essential information on its website, including its full names, physical address, an adequate description of the goods or services being sold, the price payable and the terms of the agreement of sale. Should the online retailer not do so, you have the right in terms of section 43 of ECTA to cancel the online purchase agreement within 14 days. Further, in terms of section 44 of ECTA, an online shopper has the right to cancel the online purchase within 7 days of receiving the goods or services without reason or penalty. However, the above rights to cancel the online purchases do not apply to transactions that were for financial services, online auctions, food and consumables, goods that have been made to order or personalised, or the provisions for accommodation, transport or leisure services that are entered into for a specific period of time. If an online shopper cancels the online purchase, the online retailer must refund the online shopper all payments provided the online shopper pays the costs for returning the goods to the online retailer and that the goods returned are still in the original packaging and in good condition.
Online shoppers have the right, in terms of section 56 read with section 55, to receive goods which are of good quality and are reasonably suited for the purpose for which they are intended. Should you find that your goods purchased are defective, you have the right at your discretion to request a replacement or for the goods to be repaired or for a refund to take place within six months from the date of delivery. Note also that section 61 of the CPA provides that the online retailer, distributor or even the manufacturer could be held liable in the event that the online shopper suffers harm as a result of the goods being unsafe, or having a product failure or being defective or hazardous.
Conclusion
In light of the above, it is imperative that online retailers familiarise themselves with the requirements for online sales and ensure that they adhere to the requirements under the ECTA and the CPA. Failure to do so will result in unnecessary consequences for the online retailer.