Electronic contract challenges of consumers in the Durban area and the implications of selected consumer legislation from a fairness-based perspective

Abstract

The aim of the study is to explore consumer challenges with respect to electronic contracts of consumers in the Durban area and the implications of selected consumer protection legislation in South Africa. Since the Internet became available for commercial use in the early 1990s, the means of doing business changed forever. The Internet and electronic commerce have allowed people to engage in business transactions by means of electronic communications, which makes it possible for them to conclude contracts with people situated within foreign jurisdictions. Consumers have been cautious to make use of electronic commerce, as they are uncertain about the consequences that their actions might have. Consumers will only utilize e-commerce if they have confidence in the legal system regulating it; therefore, legislation was needed to regulate their ecommerce activities. Most of the studies on contract agreements have focused on the implications of formal written agreements, particularly from the perspective of businesses. Limited research has been conducted on electronic contract consumer challenges and the rights offered by existing consumer law in South Africa. Therefore, this study seeks to fill the gap by exploring online consumer challenges in electronic sales contract and protection offered by existing consumer protection legislation in South Africa. Through a quantitative study using questionnaires, data was collected from 384 consumers in the Durban area. The findings from the study revealed that even though the Consumer Protection Act has been in existence for more than ten years, there are still consumers that still do not know and understand their basic consumer rights. The study has shown that there are multiple challenges and barriers facing consumers concerning the conclusion of electronic consumer contracts, notably, which have not been adequately addressed.