Consumers warned of overseas sellers making misleading claims
From Jan 1 last year to Aug 2 this year, the Consumers Association of Singapore (Case) received 52 complaints from people who were misled into making purchases from overseas online retailers.
Case and the Competition and Consumer Commission of Singapore (CCCS) said in an advisory yesterday that consumers should be alert to common tactics used by errant online retailers.
They include the retailer claiming that it has a physical presence in Singapore. One way to do so is by adding the abbreviation "sg" in its website address to give the impression that it is based here.
Consumers can verify the claim through the Bizfile portal maintained by the Accounting and Corporate Regulatory Authority.
The agencies also warned consumers of false or misleading claims about products and seemingly large discounts.
"Errant retailers may attempt to mislead consumers by giving them fictitious contact information to seek consumer refunds or redress," said Case and CCCS.
Before making a purchase, consumers should look out for questionable claims about the retailer's business premises and research the claims mentioned.
"When in doubt, verify the authenticity of the accreditation or awards against official sources, such as the website of the organisation that purportedly issued the certification or award," said the agencies in their advisory.
THIRD PARTY
Escrow payments should also be opted for, where possible. This arrangement is when a third party releases the money to the retailer only after certain conditions are met.
Consumers are advised to make purchases through e-commerce websites that have a padlock symbol in the address bar.
This indicates that the connection is encrypted, which will ensure that information transmitted to the website, such as credit card details, is secure.
Mr Lucas Tok, section head and lecturer of digital marketing and branding at Singapore Polytechnic's School of Business, is not surprised that consumers have been misled to purchase from errant retailers.
Speaking to The New Paper yesterday, he said: "This could be telling about the vulnerability of consumers, which is why education on this matter is important.
"E-commerce is here to stay, especially with Covid-19. That is why consumers need to question the legitimacy of an online shop before even adding items to their carts."
He advised consumers to always research the company offering a deal and check for legitimate reviews.
"Errant retailers are getting smarter with their tactics.
"So consumers should be aware of the tactics used and always check the legitimacy of the website before buying a product. If an offer is too good to be true, it probably is not true," he added.
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