Jumia, Africa’s largest e-commerce platform, has been notified by the Common Markets for Eastern and Southern Africa (COMESA) that it will be held accountable for goods sold by third-party merchants on its platform.
The regional economic community in Africa has compelled Jumia to review its clauses and disclaimer and amend its terms and conditions. This means that Jumia will have to recall any defective or unsafe products sold by third-party agents and will be held responsible when customers cannot get a refund or replacement from vendors.
COMESA’s statement said that Jumia had disassociated itself from the transaction, even though the consumer deals only with Jumia, as it is the one that receives the orders, payments, and delivers on behalf of the seller.
The watchdog required Jumia to indicate clearly where it is the seller and amend the terms to show that it is liable for the products sold. If a third party is involved, the e-commerce site will provide access to a sale agreement between the seller for the buyer to review and accept the terms before buying the goods.
Jumia will also ensure the accuracy of the information on sellers and products posted on its platform. If a person is affected by the inaccuracy of the information published on the platform, they can return the product to the extent that it is affected by the inaccurate information that was bought through the platform.
The commission’s decision is aimed at protecting consumers and ensuring that they have a legitimate expectation that Jumia should have adequate terms and conditions for engaging sellers.
In response, Jumia said that it has fully adhered to the recommendations provided by the COMESA Competition Commission and will continue to work closely with them to ensure that its policies are even more protective for its customers.
Jumia, launched in 2012, is the leading online marketplace in Africa, with the highest number of monthly visits. Nigeria, Jumia’s home market, accounted for the majority of the visits, around 31% of the total, as of 2023. Morocco and Egypt followed, with shares of 17% and 14%, respectively.
This move by COMESA is a significant step towards ensuring that e-commerce platforms operating in Africa take responsibility for the products sold on their platform. It will go a long way in protecting consumers’ rights and ensuring that they are not exploited by third-party sellers.