Dileesha was thrilled to find a luxury handbag at half the price on a flashy online store as she scrolled up and down on Social Media. The discount was to end in two days.
It asked for full advance payment to confirm the order. Without a second thought, she made an online bank transfer and placed the order. Days turned to weeks, but no update on delivery. However, customer service was not responding. The ‘store’ had vanished, along with her money. She reported the fraud, only to realise that the chance of recovering her money was slim. Dileesha had learnt the hard way. A deal too good to be true usually is. Yes, online shopping is convenient and provides you with endless choices but requires multiple checking before you click the ‘pay now’ button. Electronic commerce has been gathering momentum in Sri Lanka lately. For those in remote areas or with busy schedules, online shopping is a game-changer, bringing everything from groceries to gadgets right to their doorstep with just a few clicks.
e-commerce platforms
The Covid-19 pandemic added pace to this trend, as more and more stores started providing delivery services, and many first-timers tried them. A section of Internet users had been frequenting international e-commerce platforms long before the Covid-19 pandemic to mostly order what is not commonly found in local stores. Some of those platforms have now become household names, signaling a shifting landscape. As businesses and consumers adapt to the changing times, eliminating the uncertainties that both parties encounter when buying and selling online has become necessary.
Cross-check
As online shopping grows, fraudsters and scammers have also shifted their focus to this medium. Buying an item that you cannot touch and feel from a remote seller whom you have never seen entails a certain risk. Knowing how to navigate the pitfalls of online shopping is, more or less, a life skill in today’s world.
Consumers, whether online or offline, are entitled to specific rights such as the right to be informed, the right to redress, the right to choose, and the right to be heard. However, protecting these rights for online consumers has become more challenging than for those making face-to-face transactions at a physical store.
“We are seeing many people getting trapped to fake websites and online advertisements. When you are ordering something online, first verify whether you are buying it from a trusted source. We advise against purchasing goods from anyone not providing the address or exact location, a contactable number and business details including the official website and company registration details. When such information is missing, there is no way we can trace the vendor back if something goes wrong. If you are ordering for the first time, see whether the company really exists by cross-checking the given information. If it is a virtual shop, see whether they are contactable,” said Chief Information Security Officer at the Sri Lanka Computer Emergency Readiness Team (SLCERT) Nirosh Ananda.
Red flags
Speaking to the Sunday Observer, he recommended making the payment at the delivery of goods. “When the payment is done in advance, you have little options to report if there is a mismatch between the product you ordered and the product you received. There is also the possibility of not getting the item delivered at all. I am not saying that online platforms are unreliable. Many reputed websites offer secure transactions and parcel tracking services. We have to gradually develop the ability to distinguish between trustworthy online shops and those that should be avoided,” he added.
SLCERT Chief Information Security Officer Nirosh Ananda
“For example, be careful about pop-up advertisements, they might not always be legitimate. Some advertisements may mislead users into visiting fake websites that closely resemble those of well-known companies. These fake sites often have slightly altered URLs to trick people,” he cautioned.
“If you come across a lengthy URL filled with slashes and random characters, proceed with caution; that could be a fake site. Domains ending in ‘.top’ or ‘.fun’ can be easily purchased online and are often used for deceptive purposes. These are known as generic top-level domains. For instance, if a legitimate company operates under ‘xyz.com’, a fake website might appear as ‘xyz.top’, mimicking the original. When a generic top-level domain is asking for payment before delivery, it becomes a red flag for potential fraud,” he added.
SLCERT assistance
The SLCERT Officer said that anyone with doubts or in need of assistance could contact the SLCERT hotline at 101, available from 8am to 8pm, or email to ‘[email protected]’. The individuals, who require help, can also visit the SLCERT office at BMICH in person.
However, he said that SLCERT does not have the authority to conduct investigations on such issues, but can provide technical assistance to help resolve them. “We can advise on recovering lost money, where to file complaints, and how to trace fraudulent activities. Your complaints also contribute to taking down fake websites and implementing precautionary measures,” he said.
Ananda urged people not to share the One Time Passwords (OTPs) sent to your mobile phone or email to another party when making an electronic transaction. “There is no reason for the other party to request your account details or verification codes. The buyer will either provide their bank details or direct you to a secure payment gateway to complete the transaction,” he said.
“Even on smartphones, fake applications can steal your data and be used for various malicious purposes. Keep your device clean. Download only the essential applications from trusted sources. Be careful when downloading gaming apps,” he said.
Smart shopping
Anton Peiris, a regular online shopper in Kalutara, who has used several international e-commerce platforms to purchase items ranging from high-end watches to small household gadgets, mentioned that, in most cases, he had been able to buy those items at a lower price than the local market or at the same price even after factoring in the delivery fee.
“The Customs occasionally hold items and impose a levy upon their arrival in the country. While it is understandable to charge a tax on items brought in for commercial purposes, imposing such a tax on items intended for personal use is somewhat questionable,” he said.
He said that most of the items he purchased online met his expectations, while a few fell below the mark. “Deliveries used to take a considerable amount of time in the past, but now they arrive within a week or so. However, some shops specify that they do not ship to Sri Lanka. I always read reviews and ask questions via chat before making a purchase with my credit card. On one occasion, I successfully received a refund upon request. Overall, my experience with these platforms has been hassle-free,” he added.
Buying online saves travel time and cost, allowing the people to spend that time and money for other activities.
Regulating e-commerce
In recent years, Sri Lanka has paid attention to address consumer rights in the digital sphere through new regulations under the Consumer Affairs Authority (CAA) Act and laws such as the Electronic Transaction Act and the Computer Crime Act. Issuing an Extraordinary Gazette notification (No. 2332/15) for the protection of online consumers in May 2023, the CAA has laid down conditions for online sellers, covering pre-purchase, purchase and post-purchase stages.
Pre-purchase conditions mention that e-commerce platforms must uphold fair business, advertising, and marketing practices by ensuring transparency and honesty. Customers should not be misled by false claims or deceptive pricing, and special offers must clearly state all terms.
Consumers should have control over unsolicited messages, while reviews must be genuine and unbiased.
Clear business information, accessible support, and responsible data handling are also essential as per the CAA Regulations. Receipts should detail pricing, payments, and return policies, with secure transactions and order cancellations where possible. Products must meet fair value and warranty standards, with safety measures in place.
These conditions have been laid down to ensure that consumers are no less protected when shopping online than they are when they buy from their local store. As always, the challenge is the effective enforcement of these Regulations and other laws on e-commerce.
As e-commerce and e-transactions expand, the World Consumer Rights Day on March 15 may be an opportune time to reflect on the need to pay more attention towards closing the existing gaps for a fair and secure online shopping experience.
