Swipe, Shop, Scam: Legal Remedies for Misleading Online Sales

Kenya’s e-commerce sector has exploded, with platforms like Jumia and Kilimall offering unparalleled convenience. However, this digital marketplace is not immune to deceptive advertising practices that mislead consumers, eroding trust. From false product descriptions to hidden fees, these “swipe, shop, scam” tactics are a growing concern. A 2024 study by TransUnion noted 72% of Kenyan consumers faced digital fraud, including misleading sales tactics. This article explores the legal remedies available under Kenyan law for consumers misled by online sales, highlighting applicable laws, relevant cases, and practical steps for redress, ensuring you can shop online with confidence.

What Are Misleading Online Sales?

Misleading online sales involve deceptive practices that trick consumers into purchases. Common tactics include:

  • False Product Descriptions: Advertising a product as “brand new” or with specific features it lacks, like claiming a smartphone has a 48MP camera when it’s only 12MP.

  • Misleading Pricing: Displaying inflated “original” prices to exaggerate discounts, such as listing a KSh 20,000 TV as “50% off” from a fictitious KSh 40,000.

  • Bait and Switch: Promoting a low-priced item that’s unavailable, pushing consumers to buy a costlier alternative.

  • Hidden Fees: Adding undisclosed charges, like a KSh 2,000 delivery fee at checkout, not mentioned in the ad.

  • Fake Reviews: Using fabricated reviews to boost product credibility, often seen on e-commerce platforms.

These practices violate consumer rights and are actionable under Kenyan law, as they undermine fair trade and consumer trust.

Legal Framework Protecting Consumers

Kenya’s legal framework provides robust protections against deceptive advertising in e-commerce, supported by statutes and constitutional provisions.

Consumer Protection Act, 2012

The Consumer Protection Act 2012 is the cornerstone of consumer rights in Kenya. Section 12 prohibits false, misleading, or deceptive representations about a product’s quality, quantity, price, or characteristics. For example, advertising a laptop as “16GB RAM” when it has only 8GB violates this provision. Section 13 addresses unconscionable conduct, such as exploiting vulnerable consumers, like elderly shoppers misled by false health claims. The Act applies to all transactions, including e-commerce, and empowers the Competition Authority of Kenya (CAK) to investigate and penalize offenders.

Competition Act, 2010

The Competition Act, 2010 tackles unfair market conduct. Section 55(a)(i) prohibits false representations about a product’s “standard, quality, value, grade, composition, style or model.” Misleading promotional offers that inflate a product’s value (e.g., claiming a KSh 20,000 item was “originally” KSh 40,000) violate this section by misrepresenting value. The CAK can impose fines or orders to cease deceptive practices.

Constitution of Kenya, 2010

Article 46 of the Constitution of Kenya 2010 guarantees consumers rights to:

  • Goods and services of reasonable quality.

  • Accurate information to make informed choices.

  • Protection of health, safety, and economic interests.

  • Compensation for losses from defective goods or services.

This constitutional provision underpins statutory remedies, ensuring consumers can seek redress for misleading online sales.

Other Relevant Laws

  • Sale of Goods Act (Cap 31): Section 16(b) implies conditions that goods must match their advertised description and be of merchantable quality, applicable when e-commerce products fail to meet advertised standards.

  • Trade Descriptions Act (Cap 505): Section 3 prohibits false trade descriptions, such as misrepresenting a product’s origin or quality, like claiming a phone is “made in Japan” when it’s not.

  • Anti-Counterfeit Act, 2008: Section 32 addresses counterfeit goods often tied to deceptive ads, such as fake branded electronics sold online.

Practical Illustration

Esther, a 70-year-old retiree, browses an e-commerce platform for a mattress to help with her back pain. She finds an orthopedic Mattress advertised for KSh 25,000 as a “limited-time promotional offer,” marketed as “doctor-recommended for seniors” and “clinically proven to relieve back pain and improve sleep.” The ad features testimonials from elderly users and images of a luxurious mattress, appealing to Esther’s health concerns. Trusting the claims, she purchases it, expecting relief from her chronic pain. Upon delivery, the mattress is a thin, low-quality foam model with no orthopedic features, causing discomfort. The “clinical proof” was fabricated, exploiting Esther’s age and health needs.
Legal Violations:

  • Consumer Protection Act, 2012: The false claim of “clinically proven” benefits violates Section 12 for misleading representations about the mattress’s characteristics. Targeting Esther with health claims tailored to seniors breaches Section 13 for unconscionable conduct, exploiting her vulnerability.
  • Sale of Goods Act (Cap 31): The mattress’s failure to match its “orthopedic” description violates Section 15, and its poor quality breaches Section 16(b) for merchantable quality.
    Remedies:

Esther can:

  • Contact the seller for a refund or replacement, citing the Sale of Goods Act.
  • File a complaint with the Competition Authority of Kenya (CAK) through their website. The CAK may apply administrative remedies to resolve the complaint, such as ordering a refund or the withdrawal of misleading representations
  • Consult a lawyer to pursue damages for financial loss and distress, leveraging Consumer Protection Act protections for vulnerable consumers.

Conclusion

Deceptive advertising in Kenya’s e-commerce landscape continues to erode consumer confidence. However, the Consumer Protection Act, 2012, the Competition Act, 2010 and the Constitution of Kenya, 2010 provide a solid legal framework for redress. Empowered with knowledge, consumers can assert their rights by documenting violations, engaging sellers, and pursuing remedies through the CAK or the courts. Ultimately, informed and proactive consumer behaviour, such as verifying seller credibility, using secure payment channels, and questioning offers that appear too good to be true, can promote a more transparent and trustworthy digital marketplace in Kenya.

Misled while shopping online?Our team is here to help. Contact us at [email protected] for expert legal support.