Fraudulent practices in e-commerce cannot be tolerated

We agree with the opinion of experts—at a virtual discussion on "Building a Sustainable Ecosystem for E-commerce", organised by the Dhaka Chamber of Commerce and Industry (DCCI)—that there needs to be a sound and organised policy in place for the e-commerce sector of the country to follow. This is especially necessary now given the recent revelation of fraudulent business practices by companies such as Evaly.

According to documents collected by Bangladesh Bank during a probe report into the company, until March of this year, Evaly owed its customers and supplying vendors roughly Tk 213.9 crore and Tk 189.9 crore, respectively. However, its assets at the time amounted to only Tk 65 crore. Meanwhile, customers would wait months and months to receive their products, if they did at all. Many had to make do with refunds received "in the form of a credit on Evaly's unlicensed digital wallet" and not as cash, according to one report by this newspaper. The money it took from unassuming customers, meanwhile, was used to fund incredulous discounts on its vendors' products, frequent advertisements in all forms of media, sponsoring cricketing events and movie releases, and paying brand ambassadors and influencers to do their bidding to the public.

Such practices are not only harmful to the affected customers and vendors, but also hurt the credibility of other businesses on the country's e-commerce and f-commerce (Facebook commerce) platforms. It is especially dangerous as it may stop new businesses from entering the market and make it difficult for smaller businesses to gain and keep customers.

   We believe that in forming a policy which will keep e-commerce businesses in check while also protecting both vendors and customers, the input from all stakeholders needs to be considered. This includes—besides the aforementioned crucial players—digital platforms, payment gateways, policymakers, and business experts. Given that the online business industry of Bangladesh is still in its growing stage, there must be room for mistakes and policymaking needs to be dynamic in order to accommodate technological changes. However, what cannot be condoned and must be met with action are business practices that exploit customers and sellers while giving them nothing in return, least of all what they are owed for their money and products. Companies such as Evaly cannot be given any leeway (such as cash injections) unless it is to repay the customers and sellers, under proper arrangements of course. If anything, their punishment needs to be made an example of so that none in the e-commerce sector try to replicate their practices in the future.