Jumia, Africa’s largest e-commerce operator, can now be held accountable for any disputes originating from third-party transactions done over its platform. This is by amending its terms and conditions.
The Common Market for Eastern and Southern Africa’s (COMESA) decision to this effect is what led to this development. Jumia’s terms and conditions have been under scrutiny since September 2021 by the worldwide business community, which has now decided that the company can no longer escape liability for goods sold on its website.
COMESA issued a statement in which it stated: “The Commission’s view was that Jumia was distancing itself from the transaction whereas, in an actual transaction, the customer deals exclusively with Jumia, in that it is the one that receives the orders, pays, and delivers on behalf of the vendor.”
Jumia Marketplace
Jumia’s “Marketplace,” where independent sellers offer their goods, accounted for more than 58% of the company’s income last year. As Jumia also sells goods in the marketplace, there isn’t a separate marketplace section on the website. As a result of the decision, Jumia must now make it apparent when it is the principal seller, and, in cases involving third parties, it must offer a sale agreement for customers to peruse before making a purchase.
The decision also guarantees that clients have the right to sue Jumia when it is impossible to find the contact details of independent sellers. Jumia now has a responsibility to guarantee the accuracy of any vendor and product information displayed on its site. The Commission added, “Any individual impacted by the erroneous information published on the platform may return the product to the degree that it is affected by the inaccurate information that was purchased through the platform.”
Jumia also now has to publish its legal information to its clients after the commission concluded that its website did not disclose any information that will allow customers to sue Jumia. Also, the business had to inform its clients of its dispute resolution and communication methods.
Conclusion
The COMESA decision is particularly significant because many e-commerce platforms have the propensity to distance themselves from third-party transactions, which frequently leaves buyers in despair after purchasing subpar items. As more Africans continue to shop online for goods and services, the decision is a welcome move towards derisking e-commerce throughout the continent and is likely to foster customer confidence in e-commerce businesses.
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