Warning consumers against some e-shop-keepers practices
(Prague, April 15, 2010) In the context of increasing number of consumer notifications, the Czech Trade Inspection points at possible risks when shopping in some e-shops.

On the edge of 2009 and 2010, number of consumers’ notifications raised on strange selling practices of some e-shops of names similar to this example: www.ridkyceny.cz (www.ridkyprices.cz). At first sight such e-shops do not differ from other e-shops in the way of offering goods and services. But the main difference is especially in the type of contract between seller and consumer. After reading the General Commercial Terms, an average consumer is not sure about specialities resulting from the contract through which the e-shop-keeper tries to avoid legal requirements on the seller in relation to the consumer (defined by the contract of purchase).

Therefore we will tell you more about possible risks when buying in such e-shop. From the GCT you learn that you make a mandatory contract with the business operator. In short, you give an order to the trader to get you goods you chose from the offer. The trader finds the goods for you and has it delivered for the contracted price to the address you filed in the contract. This is the point where trader’s obligations end and from where all entitlements established are carried by the buyer.

What are the disadvantages and risks resulting from such mandatory contract?

The goods cannot be pay by cash on delivery! The ordered goods has to be paid by you in advance by a bank transfer and then you have to wait if the goods will be delivered. Sometimes the delivery periods are extremely long, especially when the goods are sent from out-of-EU destinations.

The consumer is not informed on the price of the product itself. This means that the products price published in the e-shop includes the seller’s commission. This means that the final invoice on the delivered goods will be lower that the e-shop price. For example you choose a product in the amount of 1000 CZK and you order it. Consequently goods will be delivered to you in the price of 800 CZK. The difference, 200 CZK, is the seller’s commission. The seller does not inform the consumer on the commission amount for transmission of goods before the purchase is realized, even though he or she is obliged to.

When the mandatory contract is made, the trader does not announce name of the goods supplier. That means that the seller is not the owner of the offered goods which will be delivered to you by a third person. This company delivers the goods and the receipt to you. In case the goods in not in conformity with consumer’s expectations and needs, he or she has to withdraw from the contract in 14 days being in relationship with the delivering company who also gave out the bill. If the company is Czech, everything is all right for the buyer, as the firm has to follow the Czech legislation. Problems come when the goods is shipped from outside the Czech Republic. Within the EU it is, in most cases, possible to return the goods and also money, but in case the goods is shipped from outside the EU, e.g. from China, it will be very hard for you to manage to return the goods and get your money back, not talking about the transport costs.

Other hidden costs can come in case that the ordered goods (for an interesting price) will be delivered from a firm out of the EU. Such goods are addressed directly to the consumer and goes through the customs control. The Customs Office, accordingly to the type and price of the goods, can assess customs. Consequently goods will be delivered to you just after you pay the customs or it will be delivered with the request to pay the customs. This means that an attractive price can rise to the level of the price not as interesting as it seemed before the purchase.

A risk might be also a fact that in the case of goods provided by a trader of EU or out of EU (E.g. China), the products will not provide manuals in the Czech language. In case of products with a complicated way of use, a problem can appear if the consumer is not literate in foreign languages.

 - Also in case of claims and repair it is necessary to turn directly to the goods supplier. Nevertheless 2-year guaranty is not in all EU countries and out of the EU it is very hard to demand a 2-year guaranty or repairs.

The message of the mentioned reasons is that despite attractive rises, shopping in such e-shops is of high risk for consumers. The e-shop-keeper is actually responsible for nothing. His or her only business is to get money with his commission and order the goods. After that he or she is not responsible for nothing and will not communicate with you in any way in case you want to enforce any consumer rights. We recommend you to think about all risks and consider if the attractive price is worth risking possible future problems when shopping in the mentioned way.

“With regard to the fact that internet is one of the fastest information media the consumer has got the possibility to find references on the particular e-shop. In forums and reviews positive or negative evaluations can be easily found on experience with the particular e-shops. We recommend always before the purchase (especially of more expensive products) to check the chosen e-shop with regard to reliability and firmness,” said RNDr. Jana Příhodová, the Director General of the Czech Trade Inspection.

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