CPA warns consumers against dealing with Instagram accounts

  • 4/21/2022
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The Consumer Protection Association (CPA) warned all consumers in Saudi Arabia against dealing with Instagram accounts for commercial transactions and dealings. The CPA cited a number of reasons for this. These include that the Instagram platform is a social networking platform, and not a commercial one. The association noted that it is receiving on a weekly basis dozens of reports of fraud or procrastination related to purchasing through Instagram accounts. It noted that the use of most Instagram accounts for transfers from personal bank accounts in the names of individuals inside or outside the Kingdom, which turns the nature of the transaction into a dispute between individuals rather than a commercial dispute. In such transactions, the process of refunding the money paid is a complicated and difficult one as it does not come under the jurisdiction of commercial rules and regulations. The association also emphasized that the Instagram accounts do not meet the e-commerce requirements sought by the Ministry of Commerce, most notably the absence of electronic payment, the lack of display of the commercial registration and tax number, and the absence of a clear and written policy for exchanges and returns of goods. This is because most of the Instagram accounts are individual one and not affiliated with or associated with institutions or companies registered in the Kingdom. The association noted that most complaints and reports of fraud and procrastination in dealing with Instagram accounts are pertaining to clothes and gowns, electronic games, recharging cards and the Internet cards. The association suggested consumers to take note of the following matters when undertaking purchasing from electronic stores: * Verify the validity of the commercial registration by inquiring from the Ministry of Commerce or by inquiring about online stores available at the CPA. * The association provides free online store inquiry service to all consumers in the Kingdom in order to ascertain that the website is not registered in the fraud data monitored by the association and to verify the validity of the commercial registry and its link to the online store. * In the event of a request to transfer the purchase amount to a personal account inside or outside the Kingdom, the possibility of fraud and the inability to refund the amount is very high. * If payment is requested by sending a WhatsApp link or other communication sites, the possibility of fraud is high. It is noteworthy that the association aims at protecting the consumer’s interests; safeguarding and defending consumer rights; representing consumers before public and private bodies; protecting consumers against all kinds of adulteration, counterfeit, fraud, deceit, falsification and exaggerated prices; and promote consumer awareness and rationalized consumption.

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