E-COMMERCE AND CONSUMER PROTECTION: LEGAL REMEDIES FOR ONLINE SHOPPING SCAMS IN NIGERIA

1.  INTRODUCTION

Electronic commerce emerged in the 20^th century, due to the need for a faster platform for all forms of trading in commerce. Prior to this, commerce was carried out manually in the real world between individuals and traders without the help of technology. The sudden change was so drastic and far reaching that the whole world was awakened to the need to upgrade one’s knowledge of technology in order to keep up with the latest trends.

Trade itself has existed almost as long has existed but, this new innovation called E-commerce is far different from what had been the norm in the world of commerce before, and this has brought huge problems which have led to the some legislation, both private and public in some jurisdictions in order to regulate and control its excesses. 

E-commerce refers to the buying and selling of goods and services over electronic networks, primarily the internet. While it offers unparalleled convenience, it also presents unique challenges for consumers, such as the inability to physically inspect a product and a higher risk of fraud or data theft. The FCCPA defines a consumer in section 167 (1) to include any person: who purchases or offers to purchase goods other than for the purpose of resale, but does not include a person who purchases any goods for the purpose of using them in the production or manufacture of any other goods or articles for sale or to whom a service is rendered.

The current intense emphasis on consumer economy, private sector led development, the increasing wave of globalization, and unprecedented growth in information and communication technology (ICT) among others have all combined to reawaken interest in consumers’ right in the transaction process. This resurgence is not restricted to the developing countries but has been shown to be prevalent in the highly developed democracies of the world. In Nigeria as in some developing countries of the world, the enactment and enforcement of consumer protection laws have witnessed appreciable emphasis particularly with the return of democratic rule in the country. All these are taking place at a time when consumers’ right and even protection life are seriously been challenged by the unprecedented growth in fake and sub-standard products in the Nigerian markets as evidenced by the recurring destruction of unwholesome food and drugs by the National Agency for Food and Drug Administration and Control (NAFDAC) and other regulatory agencies in the recent years. This problem cuts across virtually all the sectors of the Nigerian economy including service providers (Monye, 2003). Such wanton exploitation has resulted in gross abuse of consumers’ rights, which at times results in loss of human life. Surprisingly, all these are happening in a context where manufacturers, sellers and service providers, on the other hand, have continued to assert their unfettering acceptance and application of both marketing concept with as attested for by the corporate mission and vision statements that decorate the literature of most of these organizations in Nigeria. As early as 1970s, Nigerian government responded to the demand for protecting consumers through enacting laws and decrees such as Food and Drug Decree I (1974), National Agency for Food and Drug Administration and Control (NAFDAC) Act 1993, Consumer Protection Council (CPC) Act, 1992, all aimed at protecting the rights of consumers in exchange relationships. Paradoxically, there exists very limited evidence to suggest that Nigerian consumers are seeking redress in the face of their apparent exploitation and abuse in the exchange process.

 E-commerce has become a game-Changer in Nigeria, offering convenience and access to a global marketplace. However, this digital revolution has brought its own set of challenges, particularly the rise of online shopping scams. From fake products to non-existent goods, unsuspecting consumers are often left with little recourse. While these scams can be frustrating, the growth of e-commerce in Nigeria has evolved and changed the way goods and services are bought and sold. With millions of transactions now occurring online, consumer protection has become more critical than ever. The Nigerian law recognizes the unique risks of online transactions and provides specific protections to safeguard consumers.

The legal framework for E-Commerce and Consumer Protection in Nigeria Key statutes and regulations include:

• Federal Competition and Consumer Protection Act (FCCPA) 2018: The FCCPA 2018 is a cornerstone of consumer protection in Nigeria. It established the Federal Competition and Consumer Protection Commission (FCCPC) to promote fair, efficient, and competitive markets. For e-commerce, it is particularly significant because it prohibits unfair trade practices such as misleading advertising, hidden fees, and deceptive pricing. It also gives consumers a clear right to accurate and transparent information about products and services, and the right to return defective or misrepresented goods for a refund, repair, or replacement. The FCCPA directly addresses the unique challenges of online shopping by creating a legal basis for holding e-commerce businesses accountable for their representations and product quality.

• Sales of Goods Act 1893: Despite being a colonial-era law, the Sale of Goods Act 1893 remains a fundamental part of Nigerian commercial law. It governs contracts for the sale of goods and lays down essential principles that apply to online transactions. Key to this Act are the implied conditions that goods must be of satisfactory quality, fit for their intended purpose, and correspond with their description or sample. This Act ensures that a product a consumer buys online, sight unseen, must meet certain standards. If an item received online is not as described, is broken, or is not fit for purpose, this law gives the consumer a legal footing to demand a remedy.

Under the sales of goods act there are certain rights and duties a seller is to fulfill which include:

1. To Pass a Good Title: The seller has a fundamental duty to ensure they have the legal right to sell the goods. They must transfer ownership to the buyer free from any legal claims or encumbrances by a third party. See Section 12 of the Act

2. To Deliver the Goods: The seller must be ready and willing to deliver the goods to the buyer in accordance with the terms of the contract. This includes delivering the correct quantity and quality of goods at the agreed upon time and place. See Section 27, with specific rules for delivery detailed in Section 29.

3. To Provide Goods of Satisfactory Quality: Unless otherwise agreed, the goods must be of a quality that is fit for their intended purpose, durable, safe, and free from minor defects. This is a crucial implied condition that protects the buyer. See Section 14 of the Act

4. To Match Description or Sample: If the goods are sold by description (e.g., from a catalogue or advertisement) or by sample, the seller has a duty to ensure the final product corresponds exactly to that description or sample. See Section 13, while a sale by sample is covered in Section 15 of the Act.

5. To Bear Expenses for Delivery: The seller is responsible for all expenses involved in putting the goods in a deliverable state, such as packaging and preparation, unless the contract states otherwise. Section 29 (5) of the Act

Rights of sellers

1. Right to Receive Payment: The seller has the right to receive the agreed-upon price for the goods. The buyer’s duty to pay and the seller’s duty to deliver are considered concurrent conditions unless a credit period is specified. See Section 28 of the Act 

2. Right to Sue for the Price: If the buyer wrongfully neglects or refuses to pay for the goods after ownership has passed to them, the seller can sue to recover the price. See Section 49 of the Act.

3. Right of Lien: If the buyer fails to pay, the seller has the right to retain possession of the goods until the full payment is made, even if ownership has already passed to the buyer. See Section 41-43 of the Act

4. Right of Stoppage in Transit: In the event the buyer becomes insolvent and the goods are on their way to the buyer, the seller has the right to stop the goods and regain possession. See Section 44-46 of the Act

5. Right to Resale: If the buyer is in breach of contract, the seller has the right to resell the goods, especially if they are perishable, and can sue the original buyer for any losses incurred from the resale. See Section 48 of the Act

• Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act, 2004: The Cybercrime Act is a vital legal tool for combating online fraud and securing electronic transactions. It criminalizes a wide range of cyber offenses, including unauthorized access to computer systems, data theft, and fraudulent online transactions. This Act provides a critical layer of security for consumers, protecting them from financial fraud and identity theft on e-commerce platforms. It empowers law enforcement to investigate and prosecute online criminals, thereby fostering a safer online environment.

• Nigeria Data Protection Act 2023: The NDPA 2023 is a modern and comprehensive law that protects the personal data of individuals. It mandates that any organization, including e-commerce platforms, that collects, processes, or stores personal data must do so in a transparent and lawful manner. Businesses are required to obtain consumer consent, use the data only for the stated purpose, and implement security measures to prevent data breaches. Given the vast amount of personal and financial information collected during online transactions, the NDPA is crucial for building consumer trust. It ensures that businesses are responsible stewards of personal data and gives consumers control over their information.

2.1 Key Consumer Rights in E-Commerce in Nigeria

These are those privileges entitled to a consumer or a buyer of a product. In Ireland or any other EU country, the Consumer Rights Directive (CRD) gives you strong protections when transacting with any EU based business. However, these regulations do not apply in certain circumstances such as purchasing a product from a business not within the EU countries. In 1962, President John F. Kennedy outlined what he called the Consumer Bill of Rights. 

The bill stated that every person has four basic consumer rights the right to be informed, the right to choose, the right to safety, and the right to be heard. These rights received a lot of attention from the consume movement, a movement to pass laws protecting consumers from unfair and unsafe business practices. Over the years, three other rights were added: the right to have problems corrected, the right to consumer education, and the right to service. According to Viviane Reding, “Consumers need to know their rights will be enforced and reputable traders need to know that unfair traders will face appropriates penalties.

1. Right to Accurate and Transparent Information: Consumers are entitled to truthful, complete, and accessible information about goods and services offered online.

2. Right to Quality and Safe Products: The law protects consumers from substandard, counterfeit, or harmful products, whether purchased physically or online.

3. Right to Refund, Repair, or Replacement: Consumers have the right to a remedy if goods are defective, falsely described, or not delivered.

4. Right to Protection Against Unfair Practices: Misleading advertising, price deception, and exploitative terms are prohibited under Nigerian law.

5. Right to Privacy and Data Protection: Online vendors must respect and safeguard consumer personal data, in line with the NDPA.

2.1.1 Responsibilities of Online Businesses

• Provide clear and accurate product/service descriptions

• Maintain secure and reliable payment channels

• Protect consumer personal information

• Honor delivery timelines, warranties, and return policies

• Avoid misleading promotions and unfair contract terms.

3.1 Common E-Commerce Complaints and Legal Protections in Nigeria

A consumer movement called the Consumer Protection Association of Nigeria (CPAN) was formed in 1980 with the objectives of:

• Promoting and stimulating consumers‟ interest and awareness in the goods and services they buy;

• Ensuring that goods and services sold to consumers are merchantable and of the right quality;

• Providing a better forum for dialogue between consumers, the government, manufacturers and middlemen;

• Co-operating with the government and associations so that the interests of consumers could be better served, and

• Serving as a clearing house for consumer complaints and assisting them to seek redress where there are disputes regarding goods and services purchased.

E-commerce in Nigeria has expanded rapidly, but it also poses significant challenges for consumers. Common issues include receiving substandard or wrong products, non-delivery after payment, difficulty in obtaining refunds or returns, and exposure to fraudulent sellers or online scams. To safeguard themselves, consumers are encouraged to patronize reputable and traceable platforms, keep records of all transactions and communications, and promptly report violations to the Federal Competition and Consumer Protection Commission (FCCPC). Consumer rights are protected under the Federal Competition and Consumer Protection Act (FCCPA) and other relevant laws. With the rise in online transactions comes an increased risk of payment-related fraud. The Cybercrimes (Prohibition, Prevention, etc.) Act, 2024 criminalizes electronic payment manipulation, unauthorized access to banking data, and other forms of cyber fraud. Consequently, e-commerce platforms are legally required to adopt security measures such as encryption, verified payment gateways, and regular system updates to protect users and minimize liability.

The Federal Competition and Consumer Protection Act, 2019, Part XV provides for consumer rights, which if flouted, would result in the breach of the consumer’s right and thus, the institution of an action. The emergence of e-commerce has spurred evidential issues in relation to transactions carried online. The area of computer generated evidence is important to e-commerce as it has to do with Online Consumer Rights pertaining to infringement of same. Nowadays, consumers are scared as it has to do with the security of their online transactions. Section 84 of the Evidence Act, 2011 contains criteria for admissibility of electronic generated evidence, but this has always been met with disappointment in the courts as it is sometimes difficult to proof most especially when the original of the document is not available. Most statutory ecommerce law now makes it clear that an online contract cannot be denied enforcement solely because it is in electronic form or signed electronically, though statutes do not resolve all disputes that may arise from the form of an electronic contract. The cases of CSX Transportation, inc. V. Recovery Express, inc, and Brantley v. Wilson illustrate some of the problems that consumers need to consider when entering into electronic transaction.

Consumers are further advised to remain vigilant by avoiding suspicious websites, confirming the authenticity of payment channels, and using traceable options like debit cards, verified fintech applications, or escrow services. In cases of fraud, complaints should be lodged with the FCCPC, the consumer’s bank, and the Nigeria Police Force (NPF) through its cybercrime units.

3.1.1 Legal Remedies for Consumers

When a consumer's rights are violated in an e-commerce transaction, they have several paths to seek redress: 

• Filing a Complaint with the FCCPC: The consumer can file a complaint directly on the FCCPC's website or at one of their physical offices. They will need to provide all the evidence they've collected, including details of their attempts to resolve the issue with the business. The FCCPC will then investigate the complaint, often by mediating between the consumer and the business. The FCCPC has significant powers under the FCCPA 2018. It can compel businesses to attend mediation, order them to provide compensation, and even impose administrative penalties or fines for non-compliance. This gives consumers a powerful leverage point. 

This is the primary administrative remedy provided by the FCCPA, designed to give consumers a formal, yet relatively easy, way to enforce their rights without going to court.

• Alternative Dispute Resolution (ADR): ADR refers to methods of resolving disputes outside of the court system. For e-commerce, this often includes mediation and arbitration. Many e-commerce platforms and payment gateways (like Paystack or Flutterwave) have built-in dispute resolution services. These services act as neutral third parties to help resolve issues. Some online businesses even include a mandatory arbitration clause in their terms and conditions, meaning disputes must be resolved through a private arbitrator rather than a public court. 

ADR is generally faster, more private, and less expensive than litigation. It offers a structured way to reach a binding agreement without the formality of a courtroom. The rise of ODR (Online Dispute Resolution) mechanisms is a direct response to the global nature of e-commerce, offering a way to solve disputes across borders and jurisdictions, which a national court might not be able to do.

• The Competition and Consumer Protection Tribunal (CCPT): Established by the FCCPA, the CCPT is a specialized judicial body designed to handle complex consumer and competition-related cases. If a matter is not resolved by the FCCPC or if a consumer wishes to pursue legal action directly, they can bring a case before the Tribunal. The CCPT functions much like a court, with formal hearings, legal arguments, and the power to issue binding judgments.

The CCPT provides a formal, legal avenue specifically for consumer protection issues. It has the authority to issue orders for damages, restitution, or injunctions against a company. It's often the next step for a consumer who has a serious complaint that could not be resolved through mediation. The CCPT is a core enforcement mechanism of the FCCPA, ensuring that its provisions are not just on paper but can be legally enforced.

• Litigation: litigation is the final and most formal legal remedy, involving a lawsuit filed in a traditional court. A consumer can file a civil lawsuit against an e-commerce business in a regular court of law. This process can be lengthy and expensive, often requiring the services of a lawyer. A small claims court, however, is a more accessible option for disputes involving a small amount of money, as the legal procedures are simplified. 

Litigation is powerful but resource-intensive. It should be considered when other remedies have failed or when the consumer is seeking a significant amount in damages, particularly in cases of severe fraud covered by the Cybercrime Act.

Conclusion 

While online shopping scams in Nigeria can be frustrating and financially damaging, consumers are not powerless. The legal frameworks provided by the FCCPA, the Sale of Goods Act, the Cybercrime Act, and the NDPA have created a clear pathway for seeking redress. By understanding these laws and following the step-by-step process from direct communication to leveraging the powers of the FCCPC and the CCPT consumers can effectively protect their interests. This structured approach not only helps individual victims but also collectively contributes to building a safer and more trustworthy digital economy for everyone.

All over the world, one significant thing in a lawful country is Human rights. In line with this, individuals are entitled to certain rights as provided in the constitution. This paper as discussed above gave an insight to the rights Consumers have in a digital age; Rights of Online Consumers. Online consumer right on its current scale is a rising modern phenomenon. Its formulation is as a result of the growing development in the online consumer society. After the outbreak of the Covid 19, Nigerian internet users grew to about 126 million, making the country moving to the top 6 users in the world. The total internet users in the world also skyrocketed to about 3.425 billion. Hence the need for a better, convenient, safer means for transaction and the internet seems to be the perfect bet. However, there are certain tensions in this area as to the rights of online consumers. The growing rates of cybercrime in the world and security breaches have brought about the need for a structured policy which will stand like a two-edged sword safeguarding users and reproving its defaulters.