A recently released study on digital platforms in Kenya revealed that only 16 percent of the consumers of food delivery and grocery platforms in Nairobi and Mombasa had complained about unsatisfactory service. Of the complaints raised in the study conducted by the Competition Authority of Kenya (CAK), 60 percent were neither attended to by the platforms nor followed up by the complainant.
Consumers have the right to express their dissatisfaction with a good or a service they purchased and a right to get appropriate redress. Article 46 of the Constitution of Kenya outlines the four unassailable consumer rights; quality of products and services, benefits derived from the consumption of the products and services, product safety, and compensation for loss or injury occasioned by defective goods and services.
Another interesting finding from the survey is that, while 83 percent of the platforms have internal consumer complaint redress mechanisms, some attend to complaints from outside Kenya. Unfortunately, this subjects users to foreign laws and tedious follow-up procedures. This inefficient model should be addressed to enhance consumer welfare.
Another challenge noted during the study is that platforms require users to provide some information during the onboarding process, with no opt-out options. If one declines to provide all the information sought, they are barred. Platforms argue that they use the data collected to optimise services, improve user experience, and boost operational efficiency.
Consumers, on the other hand, are concerned that their data may be used to harm them. Enhanced data protection was cited by 46 percent of the respondents as one of the concerns that, if attended to, would improve their online shopping experience.
In conclusion, matters of delivery speed, data privacy, and product quality imperatively require action by platforms to enhance the online consumer experience. Further, for the rights of consumers to be upheld as envisaged in the Constitution of Kenya, we make four proposals.
First, platforms operating locally should be required to have representative offices to attend to consumers within the ambit of Kenyan law. This will not only reduce the time taken to resolve complaints but will provide solutions that are customised to our local context.
Secondly, platforms should provide opt-out options for consumers unwilling to submit all data required at the onboarding stage. While the benefits derived from consumer data are clear, the platforms ought to offer choices to consumers regarding the processing of personal data. Third, consumer watchdogs must employ technology innovatively to resolve consumer complaints promptly and to enhance customer satisfaction.
Lastly, education is crucial in ensuring that consumers understand their rights and obligations and the need to interrogate and comprehend the terms and conditions provided by the platforms.
The writers are managers at the Competition Authority of Kenya.
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