South Africa is preparing to introduce sweeping reforms aimed at regulating online shopping platforms and strengthening consumer protection in the fast-growing e-commerce sector.
The proposed changes, developed in collaboration with the Consumer Goods and Services Ombud, could significantly impact international retailers operating in the country.
Offshore platforms may need local representation
One of the key proposals is to require foreign e-commerce companies to appoint local representatives or establish subsidiaries in South Africa.
If implemented, platforms such as Temu and Shein would need a physical presence in the country, making them directly accountable under South African law.
This would allow consumers to lodge complaints locally while ensuring compliance with the Consumer Protection Act.
Companies like Amazon, which already has a regional presence, may also need to expand their local operations.
Closing the accountability gap
Regulators have warned that online platforms cannot continue to avoid responsibility when consumers are harmed.
Under the proposed reforms, e-commerce platforms could face joint liability for products sold by third-party sellers. This means they would share responsibility if goods are defective, unsafe or misrepresented.
Currently, consumers are often redirected to third-party sellers when disputes arise, making resolution difficult.
The new approach aims to align South Africa with international regulatory standards, including legal precedents established in the United States.
Addressing unfair competition and tax issues
Local retailers have long argued that international platforms benefit from regulatory loopholes, particularly around tax compliance, product safety standards and return policies.
Requiring local representation would help ensure that foreign companies pay taxes on profits generated in South Africa and follow the same rules as domestic businesses.
Rising complaints in a booming sector
South Africa’s e-commerce market has seen rapid growth, with online sales increasing by 35% to reach around R96 billion between 2024 and 2025.
However, this growth has been accompanied by a surge in complaints. More than 20% of cases handled by the ombud over the past five years relate to e-commerce.
Common issues include non-delivery of goods, misleading advertising, delayed shipments, unsafe products, refund failures and counterfeit items.
Regulators say the reforms are necessary to address these challenges and ensure that consumer rights keep pace with the evolution of digital marketplaces.
Source: Mybroadband
