Online business through social media and other digital sales platforms is rapidly emerging in Tanzania. This growth has highlighted the need to address consumer protection in e-commerce. The subject sits at the intersection of consumer rights law, ICT regulations, and trade rules, tackling challenges that arise from online transactions.
Key laws and policies governing consumer protection
• The Fair Competition Act, 2003 (Cap. 285): Prohibits false, misleading, and deceptive trade practices. It established the Fair Competition Commission (FCC), which safeguards consumer interests, ensures truthful advertising, and requires disclosure of key information.
• The Electronic Transactions Act, 2015: Grants legal recognition to electronic records, signatures, and contracts. It obliges online service providers to present accurate and accessible terms and conditions and allows consumers to cancel certain transactions within a legally defined “cooling-off” period.
• The Cybercrimes Act, 2015: Protects consumers from fraud, identity theft, and online scams, and criminalises unauthorised access and fraudulent online activities.
• The Standards Act, 2009 and TBS Regulations: Guarantee the quality and safety of goods, including those sold online.
• The Personal Data Protection Act, 2022: Regulates the collection, storage, and use of consumers’ personal data by e-commerce platforms. It mandates consent, transparency, and secure handling of personal information.
• The E-Government Act, 2019 and ICT Policies: Promote secure digital transactions and public trust in online systems.
Fundamental consumer rights in online trade
Under Tanzanian law, consumers are entitled to:
• Accurate information about goods and services before purchase.
• The right to cancel certain orders within the permitted legal period.
• Privacy and protection of personal data.
• Safe products that comply with established standards.
• Redress through complaint mechanisms (FCC, TBS, or courts).
• Protection from unfair terms in digital contracts.
Common challenges in e-commerce
• Fake or counterfeit products.
• Non-delivery or delayed delivery.
• Misleading advertising on social media platforms.
• Online fraud and scams (including phishing and payment fraud).
• Cross-border transactions with sellers beyond Tanzanian jurisdiction.
• Limited consumer awareness of digital rights.
Enforcement and redress mechanisms
• Fair Competition Commission (FCC): Addresses unfair trade practices and deceptive advertising.
• Tanzania Communications Regulatory Authority (TCRA): Regulates online communication services.
• Tanzania Bureau of Standards (TBS): Ensures product quality and safety.
• Courts and Tribunals: Provide remedies for contractual disputes and damages.
Recommendations
• Strengthen cross-border cooperation in resolving online trade disputes.
• Enhance consumer awareness on cyber security.
• Enforce mandatory disclosure rules for online sellers (including identity, address, and return policies).
• Promote the use of escrow or secure payment systems to minimise fraud.
• Launch public education campaigns on consumer rights in e-commerce.
• Develop Online Dispute Resolution (ODR) mechanisms in Tanzania
