Many Kenyans could be suffering in silence from proliferation of online platforms promising convenient shopping experience (e-commerce), data from Competition Authority of Kenya (CAK) shows.
- In the Financial Year 2022/23, the e-commerce sector was second to Aviation with increased number of complaints on consumer violation cases.
- Aviation sector consumer violation complaints increased to 19 per cent during the period under review from 2 per cent the previous year.
- E-commerce on the other side recorded 8 per cent increase from one per cent in the Financial Year 2021/22.
“Due to the convenience buoyed by relatively high-speed internet and availability of smart phone devices, Kenyans are now purchasing goods and services through e-commerce platforms. This means that, there will be an increase in complaints against e-commerce platforms manipulating consumers through dark commercial patterns,” warns the Competition Authority of Kenya in its FY2022-2023 Annual Report.
Dark commercial patterns are features which exploit behavioural biases by complicating, hiding, or omitting information, or by employing manipulative design elements in order to trick consumers into purchasing a product online.
Some of the dark commercial patterns may take the form of hidden costs/ drip pricing; hidden subscriptions; supply of defective goods; non- refund and redress policies; disguised advertising; false urgency, creating the impression that a consumer will miss out on a deal; and privacy concerns.
The Authority received a complaint from a consumer who purchased books online from Text Book Centre Ltd. The website had indicated that any purchase of books will attract “free delivery”. After purchasing, the complainant was informed that he would be charged for delivery since the free delivery was only for post office delivery.
The Authority also handled complaints against Jumia Kenya Limited where a consumer purchase food online and the order was cancelled without a refund.
Another complaint against Jambo Shoppe Limited was in relation to a consumer who purchased shoes, but upon receiving, they were of the wrong size and Jambo Shoppe were unwilling to remedy the situation.
Acting Competition Authority of Kenya Director General Adan Roba says the Authority investigated 521 consumer protection cases during the Financial Year 2022/23, which represent an increase of 30 per cent from the previous year’s complaints received, a majority relating to false or misleading representations and unconscionable conduct.
Financial Services Complaints
During the period under review, the Authority says it received a complaint from a consumer who had borrowed KSh 240,000 through a KCB Platinum Credit Card and was charged 6 per cent cash advance interest at the ATM. Information on the bank’s website indicated that Platinum Credit Card holders were entitled to a 45-day interest-free period.
Therefore, the complaint expected this period to lapse on 30th April, 2022. On 23rd April, 2022, the complaint settled the full amount due (KSh 254,602), inclusive the aforementioned 6 per cent cash advance interest.
Upon interrogating the statement of the credit card, the complainant discovered the bank had charged a late payment interest of KSh 12,724 and a debit interest of KSh 8,857, totalling to KSh 21,581.
After seeking an enquiry regarding the unexplained charges, the consumer was informed that credit card billing is conducted on the 15th day of every month and that payment ought to be done on or before the 30th day of every month.
Therefore, the complainant’s failure to make any payment on or before 30th March, 2022 resulted in the late payment fee and debit interest. The complainant had not been informed of the billing and repayment cycles beforehand. The Authority undertook investigations which relate to false or misleading representations and unconscionable conduct.
KCB entered into a settlement agreement with the Authority, committing to waive and refund the late payment interest and debit charges of KSh 21,581.98, and update its website by providing a clear explanation that the 45-day interest free period offered to their credit card holders.
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