Editorial: Protecting all buyers

Editorial: Protecting all buyers
Updated 07 September 2012
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Editorial: Protecting all buyers

Editorial: Protecting all buyers

TRADE is a simple matter. The seller names his price. If the buyer agrees, the deal is done. The vendor has his money and his profit and the purchaser has the goods he or she wanted. End of story. Except of course, this is not always the case. Sometimes the goods that have been sold are not what they are supposed to have been. It could be that they are faulty, or do not do what they are supposed to do, or even that they are fake. In none of these cases is it necessarily the fault of the vendor. The goods may have been bought in good faith from a supplier.
However, there is one person who is almost never at fault, and that is the ultimate customer. If someone hands over good money for something, they can rightly expect that they are getting what they are paying for, and that there will be nothing wrong with it.
Yet some traders in the Kingdom have been operating a “no returns ” , “no refunds” policy, in contravention of Saudi laws and consumer protection regulation. They have even gone so far as to print on their advertisements “goods sold are non-refundable.”
It is therefore entirely right that the Ministry of Commerce has decided to clamp down on this disreputable practice. It will also take action against any commercial printer who from now on, is prepared to allow an advertiser to use such wording in an ad promoting goods or service. Members of the public are being encouraged to report any business that continues to try and impose these conditions, which besides being illegal are also morally wrong.
The major lesson for businessmen, especially in the retail trade, where the most violations and the most complaints occur, is that they must look to the reputation of their business. Consumers are fickle creatures who enjoy a range of choices when it comes, for instance, to buying high value electrical goods. If they have a bad experience with one outlet, they are not going to go there again. In addition, they are going to be telling their friends that an attempt has been made to rip them off. The corollary is also true. Shops that look after their customers, who do not hesitate to offer the option of exchanging faulty goods or giving a full refund, will boost their reputation. They may have perhaps lost their profit on one failed sale, but they can be pretty sure that their prompt and creditable action will bring them extra sales in the future.
It is nevertheless also important that the issue should be looked at from the point of view of the traders. If businesses have bought goods in good faith from a middleman, they too need to have, not just the law, but also the authorities behind them, when they demand compensation. Unfortunately there is a sentiment at this level of business, that is much more “dog-eat-dog.” The dealings of one trader with another tend to be much more ruthless, not simply in bargaining over price, but in assuming that the purchaser is capable of knowing precisely what he is buying. The rule “buyer beware” still runs strong. Businessmen who get it wrong tend to get smiles, rather than sympathy from their fellow traders.
A trader taking a dispute over faulty or wrongly-supplied goods to the courts, knows it is costly, time-consuming and carries no guarantee of a victory. In such circumstances, he ought to be able to turn immediately to officials from the Ministry of Commerce and demand that they investigate the case. The protection of the consumer, needs to be extended to the vendor in his own purchases. Cheating does not become any more acceptable, if it is done between businessmen.
In essence, the customer, whatever the goods or service being bought and wherever he sits in the supply chain, is almost always right. But note the “almost.” The one time that the customer will not be right, is if he or she actually asks for the wrong thing. And how many people can say honestly that they have not made such a mistake at one time or another ? In such circumstances, it is entirely up to the vendor to decide to exchange the item for what was really required, or refund the money. Often, a wise tradesman will behave this way, knowing it will enhance his business’ reputation and boost trade. Telling customers it is all their fault and that they are foolish, is hardly good business.