E-commerce complaints up 47% in 2023; motorcar industry received most complaints
About one in five complaints against e-businesses and e-marketplaces involved instances where consumers did not receive their orders within agreed delivery timelines.
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SINGAPORE: Consumer complaints involving online purchases saw a 47 per cent surge in 2023, the Consumers Association of Singapore (CASE) said on Thursday (Feb 8).
These e-commerce complaints made up about a quarter of all the complaints CASE received in 2023.
There were 3,711 consumer complaints against e-businesses and e-marketplaces in 2023 compared to 2,530 in the previous year, CASE said in its media release.
Complaints against e-businesses accounted for 85 per cent of e-commerce complaints, with the remaining 15 per cent coming from purchases made via e-marketplaces, it noted.
About one in five of these complaints involved instances where consumers did not receive their orders within agreed delivery timelines.
Another 17 per cent of the complaints were from customers who did not receive refunds within the timelines committed by businesses.
CASE received a total of 13,991 complaints in 2023, a 24 per cent decrease from the 15,144 complaints received in 2022.
Of these, CASE said it provided advice to 84 per cent of the consumers on how to resolve their disputes with businesses.
"CASE assisted 16 per cent of the consumers to negotiate and mediate their disputes with businesses. For complaints where parties were open to negotiation, 76 per cent were resolved."
AIRLINES, TRAVEL AND HOTEL INDUSTRIES
About one in five e-commerce complaints in 2023 involved the airlines, travel and hotel industries, according to CASE.
Despite that, the airlines and travel industries saw a decrease in complaints from the previous year.
In 2023, CASE received 471 complaints involving the travel industry, a 38 per cent drop from 757 in the previous year.
The airlines industry also saw a 22 per cent decrease in complaints, dropping from 478 in 2022 to 375 in 2023.
“The complaints for both industries had stabilised to pre-2020 levels, primarily due to the easing of travel restrictions globally which led to fewer complaints on cancellation of trips,” CASE said.
MORE COMPLAINTS FOR MOTORCAR INDUSTRY
The motorcar industry accounted for the highest complaints received by CASE in 2023 amid a general decrease in complaints across various industries, CASE said in its media release.
The motorcar industry "saw an increase of 8 per cent, primarily due to an increase in complaints involving rental or shared cars", it noted.
Of the 1,306 complaints received against the industry, 60 per cent and 33 per cent were related to pre-owned cars and rental or shared cars respectively.
CASE noted that complaints involving rental or shared cars nearly tripled from 152 complaints in 2022 to 435 complaints in 2023.
"Common complaints pertained to disputes on pre-existing defects, damages and repair charges imposed by rental or car-sharing businesses on consumers due to alleged damages."
About 35 per cent of complaints against the motorcar industry were related to defective or non-conforming goods, a common issue involving pre-owned cars, it said.
Another 10 per cent of the complaints were related to unsatisfactory services such as delayed processing of refunds, it added.
CASE president Melvin Yong said the association is concerned about the “sharp increase in complaints involving rental or shared cars, especially those regarding pre-existing damages”.
“We have called on the government to consider a mandatory maintenance regime for shared cars to improve safety and reduce disputes,” he said.
He also advised consumers to patronise motoring businesses accredited by CaseTrust-Singapore Vehicle Traders Association, as they are “committed to transparency and consumer-friendly policies”.
Breakdown of complaints received for the top 10 industries in 2022 and 2023. (Table: Consumers Association of Singapore)
OTHER INDUSTRIES
Besides motorcars, the other industries that accounted for the top five highest complaints in 2023 were electrical & electronics, renovation contractors, beauty and furniture.
While complaints against the electrical and electronic industry accounted for 10 per cent of e-commerce complaints in 2023, the industry saw a dip in complaints from the previous year.
It received 1,195 complaints in 2023 compared to 1,418 in 2022.
The number of complaints against the beauty industry also declined, down 19 per cent from 1,441 in 2022 to 1,166 in 2023.
“The drop in complaints can be attributed to extensive and concerted efforts by CASE and the Competition and Consumer Commission of Singapore to promote fair trading in the industry and to educate consumers,” CASE said.
It added that it also reminded business to adopt fair trading practices and steer clear of engaging in unfair practices, such as exerting undue pressure on consumers to pressure sales or making false or misleading claims.
PREPAYMENT LOSSES
Consumers suffered about S$476,000 in prepayment loses, primarily due to sudden business closures, a 26 per cent decrease from the previous year’s S$645,000, said CASE.
Of these, the beauty industry accounted for the largest prepayment losses of S$116,000, followed by the gym and fitness club industry, which accounted for S$110,000.
“While reported prepayment losses in 2023 dropped, prepayment losses remain a concern for CASE, especially in light of the challenging economic landscape where consumers are anxious over rising prices,” Mr Yong said.
“CASE reiterates our call on the government to mandate targeted prepayment protection in industries where prepayment losses are high to better safeguard consumers’ hard-earned monies.”
He added that while the association is happy to see “an overall decrease” in consumer complaints, more needs to be done 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.”
