Liability of Courier Companies in E-Commerce: Consumer Right Perspective

One of the statuses from the official page of Criminal Investigation Department of Bangladesh Police on social media have recently been circulated, where the organization stated that they have completed a successful operation to arrest a group of online shopping fraud who was running a full-scale online fraud business. In short, the model of the business of such group was providing an advertisement on social media with intent to seek the consumers to order their product and ask for a nominal amount to confirm the order. Right after the placement of the order, they used to tell the customers that cash on delivery will not be possible and the customer shall have to go to the nearest courier company’s delivery hub. Generally, when a customer goes to nearest courier center to receive the product, you have to pay the courier company to receive the product. But here, the courier company didn’t let the customer to open the package or box to check what product they are receiving. When customers would open the delivery package, they discovered they were cheated with a different product which costs money less than the product actually was ordered. As per a national daily, when a customer ordered a mobile phone, the company was sending dummy phone which had no value at all. A report says, different courier company’s van took the fake and dummy products from the office of the fake e-commerce company.

An obvious question arises here as to what is the legal remedy available for the online purchasers of our country. At first place, we have to know about ‘consumer protection’. There is principle called ‘Ubi Jus Ibi Remedium’ which means, “Where there is a right there is a remedy.” This principle explains that where a person’s right is invaded or destroyed, the law gives a remedy to protect it or damages for its loss.

The Sale of Goods Act, 1930 is an Act to define and use the law relating to the sale of goods. It also governs the contracts relating to sale of goods. In the era of e-commerce, the customers must know their rights under The Sale of Goods Act, 1930 because The Consumers’ Right Protection Act, 2009 does not describe the rights of a consumer.                                                                                                       

As per the statutory law, every consumer has the right to have delivery of the goods as per contract. A contract can be ‘expressed’ or ‘implied.’ A consumer or buyer has the right to reject the goods when the products given are not as per the description, quality or quantity as specified by the seller. Under the legal provision, buyers have a right to get reasonable opportunity to examine the goods for ascertaining whether they are in conformity with the contract.

In our country, when a product is sent to a buyer, it is called ‘On Condition Delivery’ and the courier companies do not let the buyer examine the delivery before he pays the full price. This practice is violating the provisions of statutory law and opening a new path of turning customers into victims of online shopping scams. If the courier companies would let the customers to check before paying for a product, such fraudulent activities would not happen. Indirectly, it can be said that, if a customer is being cheated by an online shopping store, the courier company has liability, as they are acting as an agent.

As mentioned by a national daily, in one of the recent big scams, the courier companies took the deliveries from the e-commerce company’s office and it is a common practice that they deal with the payments for the e-commerce companies. It can be said that, in cash on delivery transactions, the courier companies are acting as an agent for the online stores. The Contract Act, 1872 defines ‘Agent’ as ‘a person employed to do any act for another or to represent another in dealings with third persons.’ Here, the term ‘person’ is meant as ‘legal person’ who can be a company too. It means, in the e-commerce structure of Bangladesh, every courier company which is dealing with cash on delivery system is working as an agent on behalf of their principal agent, the seller e-commerce company. If an online store or e-commerce company frauds with customers, the courier company must be equally liable as the e-commerce company.

In the recent social media status of their page, the Criminal Investigation Department of Bangladesh Police claims that, such fraudulent activities have made thousands of customers become loser and out of that, the offenders made millions in profit. A criminal case can take them into jail but it will bring no benefit to the customers who have lost their money by trusting the arrested cheater group. If we look for a civil remedy, every customer can get their money back as well as the courier companies can get cautious because in the process of a civil remedy, the delivery companies as agents will have to take the customers right into consideration. It can be simply done by letting the customer examine to check what he is receiving, which is also mentioned in the law. If the courier companies give this opportunity to the customers, they will not do any favor to the customers, they will just respect the law.

Currently, our country is facing a notable crisis in providing employment opportunities, especially to the youth, both educated and uneducated. Online business or small businesses with least investment can be a good solution to deal with the unemployment problem. E-commerce is an easy-to-start business which can create new jobs and the government can earn revenue with the growth of this sector. If consumer’s right is not properly protected, this sector will not develop at all. It is the duty of everyone including the producer, seller and delivery companies to take initiative to gain trust of the consumers. It will not only grow their business as well as will create a strong and positive impact in the national economy.

Writer:

Saiful Bari, is a student of Department of Law & Human Rights, University of Asia Pacific, Dhaka.