Consumer Council: Most of the surveyed online second-hand platforms take users' info for marketing purposes

Hong Kong's consumer watchdog has revealed that most of the surveyed individual online second-hand platforms would utilise users' information for marketing purposes, while some of them offer paid advertising services. 

From March to May this year, the council conducted mystery shopping by posing as general consumers and surveyed seven online second-hand platforms operating in Hong Kong. Service information was obtained from operators’ websites or apps to examine the use of these platforms and potential consumer risks. The information gathered was confirmed and verified by five platforms, while the remaining two platforms did not reply before the deadline.

The survey revealed that one surveyed platform indicated that it would not use members’ information for marketing or promotion purposes, another platform would do so according to users’ preferences, while the remaining five platforms stated that users’ information would be used for marketing purposes.

The survey also found that one platform indiscriminately required all sellers to first link their accounts to another account of theirs with a designated third-party payment company, upload proof of address and a copy of their identity card, and then undergo “selfie” identity verification to process payments made on the platform. 

In terms of fees, there is generally no handling or listing charges unless users required additional services, such as adding a subheading to the listing or listing extra items after exceeding the seller’s quota. If users wish to increase exposure of their listings, the survey said two platforms offered paid advertising services, with charges depending on the type of promotion, coverage, number of days, amongst others. 

However, the survey found the pricing information on one surveyed platform to be confusing while the information given by customer service staff was also inconsistent, making it difficult for users to understand the actual charging method. It is the trader’s basic responsibility to clearly explain their latest charging methods and service details, and this practice is in dire need for improvement.

On the other hand, the survey also revealed that online second-hand trading platforms are not responsible for ensuring the quality and authenticity of items traded, with nearly half of the surveyed platforms displayed transaction safety information on the payment or product pages, yet none of the platforms implemented counterfeit check mechanisms or return safeguards. 

Only two platforms had a dispute resolution mechanism, which could help users resolve disputes and take necessary disciplinary measures against users concerned, including comment bans or even permanent suspension. Some platforms also used third-party tools, IP addresses, or scanning and analysis of user messages to detect fraudulent behaviour, with a view to intercepting fraud at an earlier stage, according to the survey.

Due to the limited liability of platforms and sellers’ self-regulation on the quality and authenticity of goods, buyers must be vigilant at all times when trading on online platforms. The council reminds consumers that while existing laws provide individual protection for different consumer activities, due to the wide variety of items available on online platforms, the difficulty in knowing the true identity of the seller and the authenticity of the goods traded, consumers should pay extra heed for high-value transactions. For instance, if a piece of antique catches one’s eye, ask the seller for relevant proof or seek expert advice to protect their own consumer rights.

The council also suggested consumers to review the other party’s user profile before performing a transaction when using these platforms; keep records of transactions and conversations, which can be used as evidence in the event of a transaction dispute; protect their privacy and do not disclose their personal, financial, or credit card information to third parties lightly.

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