The National Consumer Commission says companies accept money and then vanish.
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South African consumers are effectively losing key protections under the Consumer Protection Act when dealing with “untraceable suppliers,” according to the National Consumer Commission (NCC).
The commission this week added 20 more businesses, an increase of 21%, to its growing list of suppliers it says cannot be traced after allegedly accepting payments and then disappearing.
The newly identified businesses include:
According to the NCC, some of the suppliers operated entirely online, making it “even harder for consumers and authorities to track them”.
Spokesperson Phetho Ntaba said its preliminary assessment showed the suppliers’ alleged modus operandi was to accept orders and payments, fail to deliver goods or services, and then disappear, shut down websites or change known addresses without notice.
That has major consequences for consumers attempting to enforce their rights under the Consumer Protection Act.
The Act gives consumers rights relating to refunds, returns, repairs, replacements, fair marketing, disclosure of supplier information and complaints processes. However, many of those protections become difficult to enforce if the supplier can no longer be located.
According to Labour Guide, consumers have the right to return unsafe or defective goods and request refunds, receive goods and services matching what was advertised, receive receipts and supplier contact details, demand clear pricing and disclosure, and lodge complaints through the NCC.
National Consumer Commission spokesperson Phetho Ntaba.
Image: Supplied
The guide also states that suppliers are required to provide “full contact information, business names and addresses” on receipts and invoices.
In practice, however, those rights can become difficult to exercise if a supplier disappears, changes address or shuts down websites after receiving payment. Consumers may then struggle to obtain refunds, enforce warranties, serve legal notices, verify who received their money or pursue complaints through formal channels.
The NCC reminded suppliers that they are required under the Consumer Protection Act to provide accurate physical addresses and contact details. The commission also urged consumers to verify suppliers before making payments and to be cautious of deals that appear unusually cheap.
The additional 20 businesses bring the NCC’s published list of untraceable suppliers to more than 100 entities. “The newly identified suppliers are based in Gauteng, KwaZulu-Natal, and the Western Cape, with some operating entirely online, making it even harder for consumers and authorities to track them,” said Ntaba.
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