Boundless as to time and location and high flexibility, online shopping has gained increasing popularity nowadays. However, based on the complaints lodged with the Consumer Council, problems associated with online shopping could be numerous and diverse. Consumers have to be vigilant at all times especially against online shops not registered or operated in Hong Kong, once the products fail to correspond to their claims, consumers may find it more difficult to seek redress.
The Council received 958 complaints regarding online shopping during the first 4 months of the year, almost one-third of last year's record. Based on these complaints, many websites make special offers to attract consumers but shoppers are reminded to read carefully the restrictions of the offer and supplementary clauses, or consumers may run a risk of substantial loss for small gain. Some websites claimed their role as transaction platforms without any guarantee that the products were corresponding to their claims or descriptions. Besides, consumers should be mindful of the currency for payment. If a payment is made in foreign currency, apart from the exchange differences, some credit card companies may impose handling fee on overseas transactions.
Case one: Compulsory membership system
Last year, the complainant was notified that her credit card was charged $290 by Website A. But she could only recall having shopped at that website a month earlier, so she called Website A to enquire. A staff member responded that the complainant had agreed to sign up as a member when making her previous purchase from the website, so she was charged a monthly membership fee of $290, as stipulated in the terms. The complainant maintained as the website had advertised that "new members will receive a 50% discount on their first purchase", so she signed up only to take advantage of a discount offer and bought a pair of shoes at the discounted price of $130. The complainant stated that during the entire purchase process, there was no mention of other terms and conditions. She was unaware of having authorised automatic deductions from her credit card for membership fees, so filed a complaint with the Council.
Since Website A was not operated by a local trader, the only means for the Council trying to reach Website A was through "Contact information" on the website. Website A, through an email reply, emphasised that the related terms of membership fees are set out clearly. If any member intends to make no purchase in any given month, the member may submit an online application 5 days before the billing date, to waive the membership fee for that month. Alternatively, the member may terminate membership at any time. The complainant was expressed strong dissatisfaction that the website baits new members with discounts, but its membership terms are presented at barely noticeable place, allegedly for misleading its customers.
Case two: Online Shopping Platform refused to handle consumer disputes
The complainant bought 2 tickets to a musical concert through Website B, in the amount of HK$1,000 i.e. HK$500 each and paid by credit card. Upon receipt of the tickets, the complainant found that the face value of each ticket was only $280 and the seats were far from the stage. The complainant contacted Website B requesting for correction in ticket value to what she had purchased. However, Website B claimed it was a transaction platform and would not involve in price setting by the ticket holders, and would not be liable for loss of tickets or delay.
The complainant told the Council that she found it hard to accept website B's explanation. She reckoned that although Website B is a transaction platform, it should be responsible to ensure the information provided to support the transaction is accurate. The ticket value did not match what was cited in the first place. Even if the website was unable to make exchange for the $500 ticket, it should refund the price difference. Operated without a physical office in Hong Kong by a company registered in Spain, Website B did not respond to the Council's email query and the Council could not reconciliate the case.
Case three: Currency of price tag inconsistent with transaction currency
The complainant purchased a pair of sneakers through Website C, which had indicated "Payable amount: HK$499". After payment was tendered, a phone text message revealed that a payment for CNY481.33 had just been authorised. The total cost of the transaction after conversion was higher than HK$500. The complainant immediately sent a query to Website C which only responded that some products for sale could be charged either in JPY, USD or CNY. The complainant was dissatisfied, arguing that the website quoted the price for the product in Hong Kong dollars, never indicating the purchase would be completed in a different currency.
The complainant requested cancellation of the transaction but Website C said any cancellation would be subject to an 8% handling fee and suggested to offer 2 pairs of socks as compensation. The complainant declined and then sought assistance from the Council. The Council failed to reach Website C in several attempts, using the contact method set out on the website. The Council could only advise the complainant to pursue through other means.
Consumers should take heed to the following tips when making online purchases:
- Do not evaluate an online shop's reputation or reliability based solely on rankings or prominence on search engines. Be circumspect about a website's background and take other users' comments into consideration;
- If the website serves only as a transaction platform, learn and clarify its role and responsibility at first. If the website requires consumers to transfer transaction amount to a personal account, this could indicate that the seller sells the products in a personal capacity, consumers should assess the risks carefully;
- Location shown on many websites as "Hong Kong" or indicated as ".hk" does not necessarily mean those websites are operated by local companies. Consumers should browse the website information seeking more details, or check the operators' detailed information, including office address and telephone numbers through "About us", "Terms and conditions" or "Contact method";
- Websites starting with "https" are relatively safer, if warnings pop up when the browser is connecting to the websites, or going on websites starting with only "http", consumers should never disclose sensitive information to those websites;
- After making an online purchase, verify at once whether the receiving account and amount is correct, and check the transaction records periodically. Whenever an unauthorised transaction is found, inform the bank, the card issuer and the police immediately;
- Keep transaction information, such as order confirmation, email exchange records and payment records to serve as proof, whenever there is a consumer dispute;
- When there is a consumer dispute regarding a transaction made by credit card or through a platform, especially when online shops fail to provide the paid goods or services, consumers could try to ask the card issuer to raise a chargeback claim against the acquirer or request the transaction platform to follow up the related transactions.
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