A recent study on digital platforms in Kenya revealed that only 16% of consumers of food and grocery delivery platforms in Nairobi and Mombasa complained about unsatisfactory service. Of the complaints raised in the study conducted by the Competition Authority of Kenya (CAK), 60 percent were not attended by the platforms and were not followed up by the complainant.
Consumers have the right to express their dissatisfaction with the good or service they have purchased and the right to receive appropriate compensation. Section 46 of the Constitution of Kenya sets out four inalienable consumer rights; The quality of products and services, the benefits derived from consuming products and services, product safety, and compensation for loss or injury caused by defective goods and services.
Another interesting finding from the survey is that while 83 percent of platforms have internal mechanisms to address consumer complaints, some of them take care of complaints coming 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 the platforms require users to provide some information during the setup process, with no opt-out options. If a person refuses to provide all the requested information, he or she will be blocked. The platforms argue that they use the data collected to improve services, improve user experience, and enhance operational efficiency.
On the other hand, consumers are concerned that their data could be used to harm them. 46% of survey respondents cited enhanced data protection as a concern that, if addressed, would improve the online shopping experience.
In conclusion, issues related to delivery speed, data privacy, and product quality necessarily require action on the part of platforms to enhance the online consumer experience. Furthermore, in order to safeguard the rights of consumers as enshrined in the Constitution of Kenya, we make four proposals.
First, platforms operating locally should be required to have representative offices to take care of consumers within the scope of Kenyan law. This will not only reduce the time it takes to resolve complaints, but will provide solutions tailored to our local context.
Second, platforms should provide opt-out options for consumers who are unwilling to provide all the data requested at the setup stage. While the benefits derived from consumer data are clear, platforms must offer choices to consumers regarding the processing of personal data. Third, consumer watchdogs must innovatively use technology to promptly resolve consumer complaints and enhance customer satisfaction.
Finally, education is crucial to ensuring that consumers understand their rights and obligations and the need to question and understand the terms and conditions provided by platforms.
The authors are directors at the Competition Authority of Kenya.