Complaints against e-commerce sellers up 47% in 2023: Case

Case said it received 3,711 consumer complaints against e-businesses and e-marketplaces in 2023. PHOTO ILLUSTRATION: ZB FILE

SINGAPORE – Complaints from consumers involving online purchases received by the consumer watchdog jumped 47 per cent in 2023, with about one-fifth of the grouses directed at airlines and the travel and hotel industries.

In annual figures released by the Consumers Association of Singapore (Case) on Feb 8, the motorcar industry received the highest complaints at 1,306, despite a general decline in the number across various trades such as renovation contractors and beauty services since 2022.

Overall, however, the total number of complaints fell 24 per cent, from 15,144 to 13,991.

Case said it received 3,711 consumer complaints against e-businesses and e-marketplaces in 2023, compared with 2,530 in 2022.

Of these complaints, about one-fifth involved instances where consumers did not receive their orders within agreed delivery timelines. Another 17 per cent involved instances where consumers did not receive refunds within the timelines given by the seller.

Case president Melvin Yong said the high percentage of complaints against e-businesses is cause for concern.

“That is why Case launched the CaseTrust Accreditation Scheme for e-businesses last year to help consumers identify reliable e-businesses that are committed to fair trading and consumer-friendly policies,” said Mr Yong, adding that 11 e-businesses have applied for accreditation.

One in about five e-commerce complaints in 2023 involved the airline, travel and hotel industries, said Case.

Complaints against e-businesses accounted for 85 per cent of e-commerce complaints, with the remaining 15 per cent coming from purchases made via online marketplaces.

Motorcar and beauty services

Complaints involving the motorcar industry rose 8 per cent, from 1,213 to 1,306.

This comes as Case observed a sharp increase in complaints involving rental or shared cars, especially those regarding pre-existing defects or damage.

Of the 1,306 complaints, 60 per cent and 33 per cent were related to pre-owned cars and rental or shared cars respectively.

About 35 per cent of complaints involving the motorcar industry were related to defective or non-conforming goods, a common issue involving pre-owned cars.

Losses and recovery

Consumers lost around $476,000 in pre-payments in 2023 mainly due to sudden business closures, with the beauty industry accounting for the highest amount of losses at $116,000.

This was followed by the gym and fitness club industry at $110,000.

With help from Case in negotiating and mediating the complaints, customers managed to recover close to $2.5 million in cash and kind.

This was an increase from the $2.1 million recovered in 2022.

Mr Yong said that although Case saw an overall decrease in consumer complaints in 2023, more can be done to reduce the number.

He said: “More needs to be done to strengthen consumer protection and address common consumer pain points. Case will continue to engage the Government and industry stakeholders to strengthen consumer safeguards and put a stop to undesirable business practices.” 

Top 10 industries with consumer complaints in 2023

1. Motorcars (1,306 complaints)
2. Electrical and electronics (1,195)
3. Contractors (1,168)
4. Beauty (1,166)
5. Furniture (715)
6. Food and beverage (571)
7. Telecommunications (529)
8. Travel (471)
9. Hair (376)
10. Airlines (375)

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