AS ONLINE shopping gets more popular in Singapore, online cheating has become more common, according to anecdotal evidence The Straits Times reported. Infocomm Development Authority (IDA) surveys found at least 36 per cent of Internet users aged 15 years and older bought things online last year, an increase from 17 per cent in 2003. As with shopping in physical stores, shopping online does not protect buyers from common risks such as counterfeits, bait-and-switch tactics and non-delivery of goods and services. Indeed, the less personal nature of these transactions makes it far easier for the unscrupulous to get away with underhand conduct.
The IDA website does not present disaggregated data on e-commerce, but online shops likely remain only a very small part of the S$58 billion infocomm industry as of 2008. Online shoppers in Singapore spent an average of US$4,018 (mostly on airline tickets, hotel accommodation and other travel essentials) last year, according to a Visa card survey. This places them among the biggest online spenders in the Asia-Pacific. Nearly 10 per cent of their purchases was from overseas sites. However insignificant, online cheating will limit the growth of e-commerce in Singapore if it is not eliminated early. It will increasingly force online consumers to buy from more reputable sites abroad or not buy at all. Moreover, it will discourage foreigners from shopping on Singapore sites.
IDA, the Consumers Association and online merchants should look into making it easier for online cheating victims to recover losses. Online-initiated claims, adjudication and enforcement measures can provide consumers some practical recourse. However, pursuing redress through the Small Claims Tribunal, or any online version of the tribunal, will work only if the cheat has not gone untraceable.
Prevention is a more effective strategy. Online possibilities make it more so. Unlike major e-commerce sites, in the United States for example, few Singapore online shops offer the public or even buyers the facility of rating them on integrity, reliability and other aspects of the shopping experience. Auctioneer eBay, including its Singapore site, tries to prevent cheating by allowing buyers and sellers to post their comments on one another after a transaction. Consistently positive feedback adds to an eBayer's credibility among the user community. The threat of a single or a few negative ratings or remarks would deter the dishonest. It is an idea to promote integrity online as well as elsewhere in Singapore, so as to boost e-commerce growth.