Online marketplace shoppers need better protection
Nearly 11 million shoppers had a problem buying items through online marketplaces last year, according to new online research from Citizens Advice [1].
The new report Peer Problems warns the law is not keeping up with changes in shopping habits as people now buy items from individual sellers online.
Online marketplaces, like Amazon Marketplace and eBay are where people can buy and sell directly to individuals as well as buying from businesses. Most current consumer protections only apply to people buying from businesses.
Figures from the Citizens Advice consumer service show that cars; electronic equipment like computers or televisions; and furniture are the goods people most commonly have problems with when buying from online marketplaces.
The report finds:
More than a third (37 per cent) of people who expressed an opinion who bought from an online marketplace in 2014 encountered a problem.
Nearly half (43 per cent) of these people who experienced problems had a delayed delivery and just over a quarter (26 per cent) never received their order.
Young people and those on lower incomes are most likely to have problems buying from online marketplaces. (43 per cent of 18-34s and 40 per cent of C2DEs who expressed an opinion)
3 in 5 people (61 per cent) did not realise they have fewer rights when buying from an individual rather than from a business on an online marketplace.
The charity says online marketplaces are overall a good thing for consumers as they increase choice and competition, but the benefits are being undermined by the lack of protections and awareness.
Citizens Advice is concerned this lack of protection can also lead to online marketplaces being used to con people. Seventeen per cent of online marketplace queries to the charity’s consumer helpline were on scams or people unknowingly being sold counterfeit goods. Citizens Advice will be highlighting the risk of scams through Scams Awareness Month which launches on Wednesday 1 July.
Gillian Guy, Chief Executive of Citizens Advice, said:
“The law must keep up with changes in how people shop.
“Consumers stand to benefit significantly from the increase in choice and competition on online marketplaces, but without proper protections they can be left at risk.
“These sites have also opened up revolutionary new opportunities for small businesses. Bad practices by a minority of rogue traders are undermining those companies and individuals who act responsibly.
“Shoppers who use online marketplaces need proper protections, so that they can buy from a wide choice of sellers without being at risk of losing out.”
The Consumer Rights Act, which comes into effect in October, will bring extra protections for shoppers: introducing standards for how services should be carried out. However most of these protections only apply to people buying from businesses, and not from other individuals.
The report recommends that the Law Commission look at consumer-to-consumer sales, and make recommendations to help the law keep up with changes in how we shop online.
To protect buyers and legitimate sellers, the report recommends sites:
Give consumers more and clearer information about their rights;
Monitor the identities of buyers and sellers more rigorously;
Create better feedback or seller review systems;
Provide more support for sellers to use dispute resolution systems when they have problems.
To get information or advice on a consumer problem, call the Citizens Advice consumer helpline on 03454 04 05 06. You can talk to a Welsh-speaking adviser on 03454 04 05 05.
Notes to editors
The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .
The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
To get advice online or find your local bureau in England and Wales, visit citizensadvice.org.uk
You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends .