CHAPTER I

Online Shopping and The Respondents Consumer Rights Awareness

John Joseph Santos

Juan Miguel Panti

INTRODUCTION

People live in a modern world where the activities and way of life are different
and updated. How people consume products and services has various types today
because of the rise of internet. It is more efficient since technologies nowadays are
improved. The people can get products and services anytime and anywhere they want.
Online shopping is a big platform for consumers to have a convenient and better
experience to obtain products and services. Due to Vilnir (2018) people everywhere are
taking advantage of the convenience of ordering anything and having it delivered right to
their doorstep.

This convenience is the reason why people buy online instead of going out. Even
though shopping online is quick and convenient, there are times that people will
encounter bad service and faulty goods, this is why everyone should be aware of the
consumer rights while shopping online. By virtue of Alcock (2019) read the Consumer
Rights guide first, then if things go wrong, this guide's here to show you how to push
your complaint to the max.

The importance of these consumer rights is often taken for granted by

consumers. Some people are not aware that they obtain these rights when they buy
products or services online since it is easier and cheaper. In short, they have the power
to complain, exchange their products or file a lawsuit if they had a bad experience when
shopping online or when they receive faulty goods. Due to Farber (2016) about 190
million U.S. consumers—more than half the population—will shop online this year,
according to Forrester Research, as reported by the Wall Street Journal. Imagine these
millions of people that may encounter consumer rights violation if they lack knowledge
on it.

This research aims to gather information from the respondents regarding online
shopping experiences and their awareness and application of their consumer rights that
will be elaborated and further explained the latter part of this research.
BACKGROUND OF THE STUDY

Everybody is a consumer. Consuming is inevitable, it is part of our daily lives.

With the rise of Online shopping—a new way of consuming—it comes with its pros and
cons. This is the main reason why consumer rights is present in the lives of Filipinos
and the rest of the consumers around the globe. These two things (Consumer rights
and Online shopping) are both related to each other, online shopping is a complex
platform where products and services can be bought in a modern way, it is a new thing
for this generation that is why our consumer rights awareness should be present
whenever we shop online.

The Consumer Act of the Philippines (Republic Act. No. 7394) was passed in
1992. This protected people from violation of their consumer rights and their human
rights as well. Consumers have eight basic rights under Republic Act. No. 7394,
namely, the rights to: (1) basic needs, (2) safety, (3) information, (4) choice, (5)
representation, (6) redress, (7) consumer education, and (8) healthy environment.

These rights are applicable in anyplace that we buy products or avail services,
including shopping online. If in a situation where one of our consumer rights are violated,
don’t hesitate to speak out or take action to make things right. According to Habito (2016)
too many of us accept that if we get duped, it’s our fault. We consumers have to stand up
for our rights. With every right comes responsibility, and here, it is as simple as knowing
and asserting those rights, individually and collectively. Unless we do so, we will continue
being abused again and again, in pursuit of profits that come out of our very own pockets.

Even though technologies improved and we have a modern way of doing almost
anything in our lives, we should be knowledgeable on how to cope with these changes
and the actions that we will make when challenges are met. Due to Morah (2019) Both
businesses and customers have embraced online sales as a cheaper and more
convenient way to shop, but just like anything associated with the Internet, there are
benefits and dangers associated with shopping online. Read on to learn how to protect
yourself while you use this handy resource.
STATEMENT OF THE PROBLEM

This research aims to gather information on online shopping and the respondents
consumer right awareness

1. What is the perception of the respondents on consumer rights when shopping online?

2. What is the degree of respondents use of online shopping sites and apps?

3. What are the consumer rights as observed by the respondents?

4. Which of the 8 consumer rights of the respondents is most violated?

5. What problems do respondents face when shopping online considering their rights as
a consumer?

6. What solutions do respondents make when they face challenges relating to their
consumer rights?

SIGNIFICANCE OF THE STUDY

Specifically, the study is deemed important to and for the following:

1. Consumers

Consumers will be more aware about their rights and what actions they
will do when they experience any violation while shopping online.

2. Online Shopping Sites

Online shopping sites will be stricter in implementing laws and policies

regarding consumer rights. This will help online shopping sites give a better
experience to consumers.
 3. Future Researchers

Future researchers will have an idea to expand this research about online

shopping and consumer rights. They can improve on certain points in this research
and can widen their scope for their research.

4 Businesses

This will help businesses implement a better and a safe way of providing
products and services and lessen complaints or issues relating on consumer rights
violation.

5 Schools

This research will also give teachers a new topic to be added in their
curriculums because this modern method of shopping is common and consumer
rights is important to be taught.

SCOPE OF THE RESEARCH

The study Online Shopping and The Respondents Consumer Rights Awareness
aims to gather information from respondents with ages 18 to 35. The area where the
researchers will survey is inside New Era University In Central Avenue Quezon City. The
researches will have 50 respondents to answer the questionnaire that will determine their
knowledge and perception regarding on consumer rights and online shopping.

The background of the respondents such as their courses in college and their civil
status were not considered. Business owners and people managing online shopping
business were not included.
RELATED LITERATURE AND STUDIES

2019 Will Be a Revolutionary Year for Online Shopping

According to Vilner (2018) online shopping is no longer just a fad, it’s a lifestyle. People
everywhere are taking advantage of the convenience of ordering anything and having it
delivered right to their doorstep. In order to capitalize on this shift in lifestyle, retailers have
taken to the ecommerce world and are setting new norms for online businesses across the
globe.

Ecommerce is continuing to get more and more competitive. With technology constantly
evolving, so is the online shopping market. Websites are smarter, shipping is quicker,
and expectations are higher. In order to keep up with the market, online stores have
started to gravitate towards new trends.

Social media shopping:

One way in which mobile devices are being utilized for shopping is through social
media. Facebook and Instagram have opened up the ecommerce marketplace and
made it easier for users to shop through their social media platforms. Instagram, for
example, has started to offer a feature for direct product links to be tagged in posts that
even include product and price details. Additionally, companies have taken to social
media to advertise their brands and products. At this point, a company without a
Facebook or Instagram account is, quite frankly, a step behind. People spend hours
scrolling through their social media news feeds daily. Even if a company isn’t directly
paying for advertisements, their own accounts serve as an effective self promotion tool.

How to Complain Bad service or dodgy goods? Don't take it lying down

Alcock (2019) says that, to stand your ground as a 21st century champion
consumer, you need to be as smart and clever as the companies themselves.
So read the Consumer Rights guide first, then if things go wrong, this guide's here to
show you how to push your complaint to the max. It includes free template letters for
faulty goods, dodgy digital content and shoddy services, plus a new free online tool
which helps draft your complaint and manage it too.

Everyone needs to know their basic statutory rights for shopping – in other words, the
rights you have by law which a shop can't change.

Decide what you want to happen. When complaining, don't get mad. You're more likely
to get results being cool, calm and rational than if you are ranting and raving. Throw a
temper tantrum and the company may be perfectly happy to lose your custom to get rid
of you which makes the fight tougher.

Decide the answer to these three questions before you start.Do you want to exchange
the goods/keep the digital content/continue the service? If you could get the goods
fixed, the digital content replaced or have the service improved, would you be happy to
accept that? If the answer's yes, life's easier.

Do you want a full refund? While you may want a full refund, you're not always entitled
to it if they can fix the problem. Having said that, sometimes it's just easier for them to
pay up to have the problem solved.

Do you want compensation and, if so, what kind? Do you want money over and above
just fixing or replacing a product for the time or distress you've been caused? While this
can happen, it certainly complicates things so be reasonable and be sure you
genuinely feel you've been unfairly put out.

Consumers Are Now Doing Most of Their Shopping Online

 By virtue of Farber (2016) for the first time ever, shoppers are going to the web
for most of their purchases. An annual survey by analytics firm com Score (SCOR)
and UPS (UPS) found that consumers are now buying more things online than in
stores. The survey, now in its fifth year, polled more than 5,000 consumers who make
at least two online purchases in a three-month period. According to results, shoppers
now make 51% of their purchases online, compared to 48% in 2015 and 47% in
2014. As online shopping accelerates, so does the use of smartphones to make
purchases. The survey showed that 44% of smartphone users made buys through
their devices, compared to 41% a year ago.

About 190 million U.S. consumers—more than half the population—will shop online this year,
according to Forrester Research, as reported by the Wall Street Journal.

That’s a wakeup call for retailers, especially traditional department chains such as Macy’s (M),
Nordstrom, J.C Penney (JCP), and Kohl’s (KSS), all of which reported sales slumps. Even big
name stores such as Walmart (WMT) and Target (TGT) reported slim sales gains.

One of retail’s biggest game changers is Amazon (AMZN), which is killing its brick-
and-mortar rivals. According to data released by eMarketer to Fortune, Amazon’s e-
commerce revenue rose 15.8% in the last 12 months, which is roughly the same clip
as Wal-Mart. But Amazon posted $82.7 billion in sales, compared with $12.5 billion
for Walmart, and that chasm in dollars keeps getting wider.

The Pros and Cons of Online Shopping

Due to Montaldo (2019) the internet can be a great resource for shoppers looking
to expand their purchasing options, as well as a great way to save money. Online stores
are highly competitive, not only with other online stores, but also with brick-and-mortar
competitors. Price-comparison websites make deal hunting easier and also help guide
shoppers to online stores with the best reputations by posting reviews submitted by
other shoppers.

Advantages of Online Shopping

Point-of-sale advantages include stores offering no shipping charges and free ship-to-
store options. A lot of online stores do not pass on sales tax (unless required by the
state) to customers, which can add up to substantial savings for those shoppers who
buy primarily online.

Disadvantages of Shopping Online

Sometimes a deal that looks great falls short of what has been advertised.
Communicating dissatisfaction can be difficult online and often takes enormous
patience and tenacity to achieve satisfaction. Problem-solving face-to-face with local
store employees is often faster and more satisfying. Contacting the next level of
management is much easier at local stores than online.

Asserting our consumer rights

Due to Habito (2016) consumers have eight basic rights under the law, namely,
the rights to: (1) basic needs, (2) safety, (3) information, (4) choice, (5) representation,
(6) redress, (7) consumer education, and (8) healthy environment. From these have
stemmed other laws and orders, such as the Toy and Game Safety Labeling Act,
Cheaper Medicines Act, Air Passenger Bill of Rights, Anti-Lemon Law and Pre-need
Code. While ample policies appear to be in place to ensure our welfare as consumers,
most of us feel that we remain at the mercy of producers, service providers and sellers.

There are many reasons why consumers get poor treatment. Laws are often not
faithfully enforced. All too often, consumers simply don’t bother to assert their rights
enough. The story of a young couple who bought a home in Cavite from a real estate
developer is illustrative. Their new house had defects, including ones that would
compromise their safety, so they refused to accept the house outright.

They conducted several inspections, each time incurring costs for travel and effort, until
the defects were fixed to their satisfaction. Even as friends recommended contractors to
fix the house’s defects, they were adamant that the developer should handle the
problems. It would have been less costly to them, and they could have moved in much
sooner had they chosen to have the problems fixed themselves; but they stood their
ground as a matter of principle.

Often, the most practical course of action would be to just let things pass, especially as
offending companies often put up stiff resistance. The above case is relatively mild
compared to well-known consumer vs. company stories. The Pepsi 349 scandal in
1992, wherein thousands of consumers, who—feeling duped over the soft drink
company’s bungled promotional campaign—pursued legal action, obtained a Supreme
Court decision only in 2006. The aggrieved in the pre-need industry meltdown at the
turn of the century are finally being compensated only now, at far below the amounts
they lost.

But there are also positive cases in recent history, though not as well-known as the
storied battles described above. The case filed by the Department of Trade and Industry
that led to the eventual closure of Aowa Electronic Philippines for misleading customers
was a win for consumers. The consumer act prevailed when the DTI ordered the
replacement of or the refund for the defective Audi of one Ricardo Nolasco last year.

The DTI also goes to great lengths to educate consumers and protect them from
hazardous products, and confiscates potentially dangerous items like substandard
Christmas lights.

Like most laws, the consumer act and related laws aimed at consumer protection are
inutile unless consumers invoke them. While the DTI has filed some cases on its own,
the authorities generally cannot do their job unless consumers file a complaint and
provide the facts of their case. I myself have spent countless hours over the years
writing letters of complaint to companies that I had received unfair treatment from, and
had obtained due action from them.

Too many of us accept that if we get duped, it’s our fault. We consumers have to stand
up for our rights. With every right comes responsibility, and here, it is as simple as
knowing and asserting those rights, individually and collectively. Unless we do so, we
will continue being abused again and again, in pursuit of profits that come out of our
very own pockets.

Shopping Online: Convenience, Bargains, and a Few Scams

Morah (2019) says that online buying and selling have become important parts of
many people's lives. Students and parents rely on the Internet to acquire and sell
textbooks at affordable prices. Virtual stores allow people to shop from the comfort of
their homes without the pressure of a salesperson, and online marketplaces provide a
new and more convenient venue for the exchange of virtually all types of goods and
services.

Both businesses and customers have embraced online sales as a cheaper and
more convenient way to shop, but just like anything associated with the Internet, there
are benefits and dangers associated with shopping online. Read on to learn how to
protect yourself while you use this handy resource.

How Many People Shop Online?

Due to Zeibak (2017) 96% of Americans shop online, and the majority of those
shoppers prefer shopping online for reasons like saving time and avoiding crowds.
 However, there’s plenty more to learn about how, where, and why Americans use
the internet to shop.

The ecommerce junkies over at BigCommerce put together a massive set of

ecommerce statistic infographics, and we included a few of them below, along with a
quick recap of the biggest takeaways.

Basic Overview of US Shoppers

96% of Americans shop online

29% of shoppers reported they were concerned about privacy while shopping
online

49% of shoppers reported they would prefer to see (in person) and touch an item
before buying

Action Items for Ecommerce Retailers

Retailers with both bricks and mortar and ecommerce sites may have the
advantage in the future, as 49% of shoppers would still prefer to see a product in person
before they buy.

In addition, it’s important for retailers and brands to keep an eye on the
generational preferences, and tailor their shopping experience accordingly–just look at
the way Millennials shop compared with Seniors. There’s quite a wide gap, and this will
determine how you market and sell products successfully.

The reasons why consumers shop online instead of in stores

Due to Chaffrey (2017) purchasing online is accepted by many, but if you look
across categories of purchase, there are some sectors where there is still reluctance to
buy online, so online retailers still need to work on their tactics to encourage online
conversion and multichannel tactics to encourage offline purchase in-store.

A new report from KPMG has some of the most detailed research evaluating the
consumer psychology of purchase, broken down by different countries, so I'm
showcasing some of the main findings here. I hope it will be particularly useful for
students studying marketing qualifications who are looking to understand consumer
behaviour and motivations.

Reasons consumers shop online

These are main reasons consumers give for online shopping.

You can see that convenience and price comparison are the main drivers. This chart
also illustrates the importance of free shipping offers. The 40-page report also
considers variation in perception by country and in different generation groups from
Baby Boomers to Gen X and Millenials.

Controversial Change to Consumer Rights Postponed

According to Dayen (2019) the bottom line is that none of the substantive
proposals were adopted,” said Deepak Gupta, a consumer rights attorney and former
Consumer Financial Protection Bureau staffer, who attended the session. “In my view
that’s a win for consumers.”

At issue was what is known as a Restatement of consumer contract law. These are
summaries of common law in the 50 states. Judges, law students, and arbitration
panels rely on them quite often as a reference to what the law says. Typically,
Restatements are devised and approved with nary a peep from anyone outside the
4,000-member ALI, which includes top legal minds from throughout the profession,
including all the members of the Supreme Court.
Seven years in the making, this particular Restatement, co-authored by a trio of law and
economics professors, attempted to solve the nagging problem that nobody reads the
terms and conditions of a contract, even after clicking to agree that they’ve read it. The
Restatement responded to that conundrum by stating that consumers need not agree to
a contract at all to be bound by its terms. As long as consumers had notice and a
“reasonable opportunity to review” the contract—say, through a link on a website—that
would suffice. Consumers would not have to click on the link, or even know it’s there.

Consumer rights of the elderly as vulnerable consumers in South Africa: some

comparative aspects of the Consumer Protection Act 68 of 2008

Barnard (2015) says that although consumer protection is not a new concept in
South African law, the Consumer Protection Act 68 of 2008 (CPA) now provides for a
much more comprehensive and encompassing mechanism to protect consumers.
Consumers are protected, not only in the provision of goods and services, the
conclusion of contracts but also in the promotion and marketing thereof. The CPA
further provides special protection to a particular type of consumer which is the
vulnerable consumer and includes elderly consumers. Importantly, and for the first time
in the history of South African law, the consumer is provided with eight core
fundamental consumer rights. As this contribution is an attempt to provide an
interdisciplinary analysis from a legal perspective, identification of what is considered to
be an ‘elderly' consumer, needs to be assessed by referring to relevant empirical
studies from both an international as well as South African perspective.
DEFINITION OF TERMS

Consumer – a person who purchases goods and services for personal use

Consumer Rights – generally a reference to a body of law that pertains to things the
producers of goods must do to protect customers from harm

Online Shopping – form of electronic commerce which allows consumers to directly buy
goods or services from a seller over the Internet using a web browser or applications

Consumerism – the protection or promotion of the interests of consumers

Fraudulent – obtained, done by, or involving deception, especially criminal deception

DTI – Department of Trade and Industry

CPSC – Consumer Product Safety Commission

Privilege – a special right, advantage, or immunity granted or available only to a

particular person or group

E-commerce – commercial transactions conducted electronically on the Internet

Online Shopping – Buying or purchasing a product or services through the internet or

via mobile applications

App – A short term for Application.

Redress – remedy or set right (an undesirable or unfair situation)

Legislation – laws, considered collectively

Brick and Mortar – used to denote a business that operates conventionally rather than (or
as well as) over the Internet
SAMPLE QUESTIONNAIRE

Online Shopping and The Respondents Consumer Rights Awareness

Good day! We are first year college students from New Era University and we are currently
conducting a survey on online shopping and your consumer rights awareness. In relation to this,
we humbly request you to answer this questionnaire honestly as this will help us in our study.
Rest assured that all information disclosed in this survey form will be held confidential.

Respectfully,

John Joseph Santos Juan Miguel P. Panti

Noted by:

Professor Rosalie Cervantes

RESPONDENT’S PROFILE:
Instructions: Please check the box that corresponds to your answer and answer the
questions that are being sought.

Age:
Gender: Male Female

I. Instructions: Read each statement below. Then, check the box that corresponds to
your answer.
 I. What is your perception about your consumer rights in online shopping?

it gives you the right to return faulty products and have them replaced

it protects you to dishonest and misleading advertisements

it protects your human rights

it gives you the freedom to express your own opinion

it is responsible for customer services and shopping experience feedback

it makes your personal information safe when you shop online

it provides you different choices in products and services online

it provides you right and appropriate prices of products and services online

II. Instructions: Determine the frequency of your online shopping use by checking the
box that corresponds to your answer.

On a monthly basis, how often do you shop online?

Never
1 – 2 times a month
3 – 5 times a month
6 – 9 times a month
10 – times a month

*If your answer is Never you can stop writing at this point and return the questionnaire.

III. Instructions: Read each statement below. Then, check the box that corresponds to
your answer.
Which of these 8 consumer rights is most violated based on your experience in online
shopping?

Right to Basic Needs Right to Representation

Right to Safety Right to Redress
Right to Information The Right to Consumer Education
Right to Choose The Right to a Healthy Environment

IV. Instructions: Read each statement below. Then, check the box that corresponds to
your answer.

1. Which of these challenges have you encountered when shopping online? (you can
check more than one boxes).
Overpriced products
Faulty Goods (broken products etc.)
Receiving fake goods
Scams
Delayed shipping
Hidden Charges

2. Which of these solutions do you think will fix problems/challenges when shopping
online?

Stop misleading advertisements

Faster deliveries
The rating of the seller/site must be shown in the page to know if they are trusted and
legit
Posting of valid IDs of the sellers
Customer service hotlines or chats should be available at all times

Thank you very much for your cooperation