Workers pile up fake brand bags confiscated by police before they are incinerated at Xiaowuji Rubbish Disposal Center in Chaoyang district on Monday. Provided to China Daily

Disputes up by 81 percent as more shoppers turn to Web

Disputes between shoppers and online traders have soared over the past three years as more people turn to the Internet for cut-price bargains.

Authorities received at total of 2,836 consumer complaints involving purchases made on the Web in 2010, a year-on-year increase of 81 percent, according to official data.

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"Online shopping got more complaints than any other sector in the service industry," accounting for roughly 12 percent, said Han Miao, director of consumer complaints for the Beijing Administration for Industry and Commerce.

Just 473 Internet-related disputes were reported in 2008, with the number rising dramatically to 1,566 a year later.

The figures were released in time for World Consumer Rights Day on Tuesday, which has been running since 1962 and is aimed at raising awareness of good trade and services.

China's online trade volume hit 498 billion last year, making up 3.2 percent of all consumer purchases, according to statistics by iResearch, a market analysis firm specializing in e-business.

However, as the sector has grown, so too has the number of rogue traders. Han said most complaints are from shoppers who receive shoddy or fake goods, or are refused refunds.

"Every time I buy stuff online, I feel like I'm really testing my luck," said Li Jing, a 29-year old office administrator in Beijing. As consumers can only see pictures of products online, it is always a gamble on whether they will receive the same thing in the mail, she said, adding: "I've got clothes before that were very bad quality."

Wang Zhijun, vice-president of 360buy, a major Chinese online retailer, said the most difficult problem facing companies dealing in e-business is "the service for consumers living in remote areas". These shoppers often have difficulties in being able to return items, he said.

To allow consumers more opportunities to complain, Beijing set up its 12315 hotline in 2003, and has been promoting its use among online shoppers since 2009.

"We believe that negotiating solutions that suit both consumers and enterprises is the best way to resolve disputes," said complaints director Han.

Dangdang.com, the online bookseller, was the first company to sign up to the hotline project three years ago. Since then, nine more Beijing-based firms have got onboard, including Vancl and 360buy, with more expected in 2011, said Han.

Lin Ya, secretary-general of the Beijing Electronic Commerce Association, explained that the system allows e-businesses to deal more directly with customers, as well as devise new ways to promote their services.

For example, he said, staff at Dangdang promise to reply to customers within two hours of receiving a complaint and resolve any dispute within eight hours.

Wang at 360buy added that his firm has already established a fund worth 5 million yuan that is supervised by the China Consumers' Association and is used to refund shoppers whose complaints are deemed reasonable.