CGSO: Transacting with Ecommerce Platforms and E-vouchers

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CGSO: Transacting with Ecommerce Platforms and E-vouchers

• 16 October 2025
• Accounting
• South African Accounting Academy

Summary:
The Consumer Goods & Services Ombud (CGSO) has published an advisory note on Transacting with Ecommerce Platforms and E-vouchers.

Article:

The purpose of this explanatory note is to educate consumers about what to be aware of when transacting with Online Platforms that host third-party suppliers, commonly referred to as a ‘marketplace transaction’.

Online shopping may be convenient but there are pitfalls for the unwary consumer, especially when it comes to transacting with online platforms that host third party suppliers, commonly referred to as a ‘market place’. 

Consumers need  to pay particular attention when buying e-vouchers or purchasing items from online marketplaces.

Transacting online via smart phone or other device is a daily task that enables one to complete and initiate tasks with haste, without the need to go to a store physically. While the need for face-to-face transacting is very much alive, one cannot ignore the rise in online activity globally. 

With the need to transact online comes the unequivocal need for one to understand the rights and responsibilities that are provided by the Consumer Protection Act 68 of 2008 (CPA) as well as the Electronic Communications and Transactions Act 25 of 2002 (ECTA). When addressing a complaint arising from an e-commerce transaction, both the CPA and ECTA will be applied to arrive at an outcome that is fair and just.

The Consumer Goods and Services Ombud (CGSO) and the National Consumer Commission (NCC) are of the view that it remains the responsibility of the hosting platform to resolve a dispute that may arise and to ensure that these third-party suppliers comply with all provisions of the CPA and ECTA.

This advisory note provides more information on:

• Electronic vouchers
• Prepaid certificates, credits and vouchers

Consumers are urged to always read the Terms and Conditions (Ts & Cs) before proceeding with the transaction as the selection to proceed may result in a binding agreement between the consumer and the supplier.

Refer to a media release in May 2025 on this topic https://www.cgso.org.za/cgso/wp-content/uploads/2025/05/Consumer-Alert-Transacting-with-Online-Platforms-Media-release-20-May-2025.pdf 

Click here to download the Advisory Note:

https://www.cgso.org.za/cgso/download/transacting-with-ecommerce-platforms-and-e-vouchers/# 

Relevance to Auditors, Independent Reviewers & Accountants:

• The Consumer Protection Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an auditor, independent reviewer and accountant, you need to be aware of the latest publications, advisory notes and media releases by regulators, e.g. the CGSO.
• As a consumer, you should be aware of your rights and responsibilities in terms of the Consumer Protection Act – and what you should expect from online suppliers – especially in respect of online shopping.
• As a consumer, you also need to be alert when transacting with Ecommerce platforms and E-vouchers.

Relevance to Your clients:

• Suppliers and consumers have a duty to comply with the Consumer Protection Act, otherwise they could be held liable.
• As a consumer, your clients also need to be aware of the latest publications by the CGSO, as well as be alert when transacting with Ecommerce platforms and E-vouchers.

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