‘Players’ smarter, authorities not

As the digital retail economy went through the roof during the pandemic that came untypically as a blessing in disguise, the number of complaints against some e-commerce entities was too many.

But the redressing process on the part of the authorities concerned moves at a snail’s pace, drawing the ire of drained consumers.

Until fiscal year 2018-19, there were less than 2,000 complaints against e-commerce firms. The number doubled to 4,325 in the next FY. Aggrieved customers filed 8,992 complaints in the last FY20-21, according to the Directorate of National Consumers Rights Protection (DNCRP).

In the first two months of the current FY, people filed 5,987 complaints against e-commerce businesses and many Facebook pages involved in online trade. Most of the complaints are on not getting products and refunds, and cheque dishonour.

DNCRP Director-General Babul Kumar Saha said the highest number of complaints had been filed against Evaly. In less than three years since its inception, 4,932 complaints accumulated against the e-commerce company. In the first two months of this FY, customers filed another 2,206 complaints.

Meanwhile, there were only 38 complaints against online shop E-Orange till June this year. But there were 2,605 more complaints in July and August.    

“We received 13,317 complaints against e-commerce companies from FY19 to FY 21 and resolved 11,436 of them,” Saha told The Business Post.

Since FY 19 to August, consumers submitted 19,304 complaints against 18 e-commerce companies and other F-commerce shops. Saha said they resolved 12,257 of them.

He said they could not address many complaints against Evaly and E-Orange as the two companies kept their offices closed, and the court is hearing cases filed against them. Besides, the number of complaints lodged against many new online shops is rising.

Until June this year, only 74 clients complained against Dhamaka. Another 323 complaints were filed against them in the last two months.

Besides, customers made 1,051 complaints against Daraz, 644 against Falguni Shop, 626 against Priyo Shop and 4,982 against different Facebook-based online shops until August.

Until June, clients filed 10 complaints against Alesha Mart, 69 against Adyan Mart, 93 against Shohoj.com, 177 against Ajker Deal, 269 against Food Panda, 183 against Chal Dal, 176 against Othoba.com, 163 against Bikroy.com, 112 against Nirapod, 37 against Rokomary.com, 127 against Uber, and 264 against Pathao.  

Complaints are also piling up against Qcom. Last week, a disgruntled client filed nine complaints against the e-commerce platform.

Strict law, monitoring needed

In May, UN economists said the global e-commerce sales jumped to $26.7 trillion in 2019, up four per cent from a year earlier. UN trade and development experts said the e-commerce sector’s share of all retail sales jumped from 16 per cent to 19 per cent in 2020.

Lockdowns and movement restrictions prompted more people to shop online during the pandemic, with sellers announcing massive discounts and new offers to attract customers.

Evaly, for example, offered 100-150 per cent cash back. But they did not deliver many products claiming that they are out of stock.

An aggrieved customer said he had ordered 20 motorcycles on Evaly. “They promised to deliver within 45 days but I haven’t received a single motorcycle in the last three months,” the man said.

 E-Orange has been accused of embezzling hundreds of crores of taka from customers by tempting them with offers of doubling their money within 15 days, with which the latter would be able to buy products from their website.  

 Bdjobs founder and Ajker Deal CEO Fahim Mashrur said, “At least 70 per cent of the complaints at DNCRP had been resolved. Each of the complainants received Tk 5,000 to Tk 10,000 in damages. But it is not enough. It should be increased and a stricter law should be adopted to monitor and regulate e-commerce.”

 ShopUp CEO Ziaul Haque said the DNCRP could not effectively take care of the large volume of complaints. “The authorities concerned should have taken effective measures against the e-commerce companies when the number of complaints against them shot up to 1,000 from 500.”

 Evaly’s managing director and chairman have been arrested while the owners of Dhamaka and Falguni Shop are on the run. Before getting arrested, Evaly MD Mohammad Rassel claimed that they delivered more than half of the products ordered on their online platform and would be able to refund their clients if they were given five months to continue their normal business activities.  

Meanwhile, the founders of e-commerce company E-Orange Sonia Mehzabin and her husband Mashukur Rahman tried to flee abroad after handing over ownership. An aggrieved customer filed a case against them at Gulshan police station, accusing the couple of embezzling Tk 1,100 crore. A Dhaka court sent them to jail pending further hearing after they turned themselves in.

 DNCRP’s Saha said, “Our team went to their office but they were closed ... and for the cases on trial, we have to wait for the court’s decisions.”

Company law expert Tanjib Ul Alam said the DNCRP have become overwhelmed by the massive number of complaints.

“This situation would not have arisen if they took action on time. Besides, they do not have enough workforce to handle the pressure. So, their manpower should be increased,” he said.

Recently, the commerce ministry published a set of instructions to regulate e-commerce platforms in the country.

 According to the instructions, products must be delivered within the fixed time and customers will pay the price after receiving their products. A new commerce ministry instruction directed e-commerce platforms to deliver products to the customers within 10 days.